The Proactive Solutions Blog

Luxury auto depreciation limits announced for 2016

The IRS recently issued the depreciation limits for business vehicles you buy and place into service this year. 

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Qualified Retirement Plan

Did you know there are opportunities available to builders to acquire real estate within a self-direct qualified retirement plan?

Builders and developers throughout the country are taking advantage of an opportunity that is uniquely available to them. Builders and developers, by the very nature of the service they provide, have frequent opportunities to purchase land and buildings and realize significant income on the subsequent sale. As builders and developers, these gains are taxed, in most cases, as ordinary income. By using a qualified plan, the tax on these gains can be deferred until retirement or by using a Roth 401(k), the tax may be completely eliminated.

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Margin versus Markup

Understanding the difference between markup and margin, as used in estimating, is essential to the success of your construction company.  Understanding margin allows you to easily make financial decisions and gauge their impact on your bottom line.  Bankers and accountants commonly speak of margin, not markup.

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May 16 Deadline

May 16 is the deadline for calendar year-end nonprofit organizations to file annual information reports (such as Form 990) for 2015.

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Hiring an Employee vs. an Independent Contractor

If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.

Here are the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.

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What Is “Enough” For Retirement

When it comes to money and retirement, it differs for each of us when considering what “enough” will look like. For some, a universal definition might be having roughly the same amount of money available per month as they currently do after adding in their social security benefits. Due to many unknowns, experts predict that one cannot completely rely on the availability of social security benefits once reaching retirement age.

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Plan for Next Year’s Taxes

You may be tempted to forget about your taxes once you’ve filed but some tax planning done now may benefit you later. Now is a good time to set up a system so you can keep your tax records safe and easy to find.  Here are some tips to give you a leg up on next year’s taxes:

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11 Risks Hidden in Your Form 990

As watchdog groups and other stakeholders continue to expect increased transparency from nonprofits, it’s become all the more important for organizations to prepare Form 990 as accurately and completely as possible. These publicly available forms can expose organizations to public scrutiny, but they can also leave the door open for preventable penalties from the IRS and state and local taxing authorities. Read the list below to learn about some of the hidden pitfalls in your Form 990 that you  may never have noticed, but need to address.

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IRS interest rates rise for the second quarter of 2016

The interest rates the IRS charges on underpaid taxes and pays on tax overpayments have gone up for the second quarter of 2016 (April 1 through June 30). Here are the new rates for individuals and corporations.

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Subcontractor vs. Employee

It’s critical for an enterprise periodically to review the status of its workers and see if they are properly classified. An enterprise must withhold federal income tax, social security taxes, and federal unemployment taxes on wages it pays workers who are employees. It also may have to provide them with the same fringe benefits and retirement plan coverage available to its other employees. There may be state tax obligations as well. By contrast, these responsibilities don’t apply for workers who are independent contractors. The business simply cuts them a check for their services and sends them a form 1099-misc.

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