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Category: Private Business

December 3, 2019

Year-End Tax Planning in a Tax Cuts and Jobs Act World – 2019 Year-End Tax Planning Letter for Businesses

Dear Business Owner: As this year is about to end, now is an excellent time for businesses to review their current tax planning strategies to ensure they’re still meeting intended goals and develop plans for 2020. It’s also a good time to take advantage of last-minute planning opportunities that could save money now and in the coming year. With that in mind, business owners are encouraged to contact us 301.986.0600 to discuss their tax situation. CBM can develop a customized… Read more ›

October 15, 2019

The U.S. Department of Labor Finalizes the New Overtime Rule

The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than 4 million… Read more ›

August 13, 2019

DOL Expands Retirement Plan Options for Smaller Businesses

The U.S. Department of Labor (DOL) has released a final rule which should make it easier for smaller businesses to provide retirement plans to their employees. According to the DOL, the rule will enable more small and midsize unrelated businesses to join forces in multiple employer plans (MEPs) that provide their employees a defined contribution plan such as a 401(k) plan or a SIMPLE IRA plan. Certain self-employed individuals also can participate in MEPs. In October 2018, the DOL issued… Read more ›

August 15, 2018

What Makes Your Firm Profitable?

Examine Economic Drivers Profitability, in a nutshell, is revenue minus expenses. But, as law firm leaders know, increasing profitability is much more complicated than that simple equation might imply. The economy, for example, can make it difficult for firms to simply raise rates as they have in the past. How do you solve this quandary? Go back to basics and revisit your firm’s economic drivers. Needs vs. Wants For many firms, the main driver of profitability is increased rates —… Read more ›

December 22, 2017

President Trump Signs New Tax Law, Bringing Big Changes for Individual and Corporate Taxpayers

Today, President Trump signed the reconciled tax reform bill–commonly called the “Tax Cuts and Jobs Act” (TCJA)–which represents the most sweeping federal tax legislation in more than three decades. While many of the new law’s provisions affect businesses, it also includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here are some of the most notable changes. Tax brackets The TCJA maintains seven income tax brackets but temporarily adjusts the tax rates… Read more ›

November 28, 2017

Getting Around the $25 Deduction Limit for Business Gifts

At this time of year, it’s common for businesses to make thank-you gifts to customers, clients, employees and other business entities and associates. Unfortunately, the tax rules limit the deduction for business gifts to $25 per person per year, a limitation that has remained the same since it was added into law back in 1962. Fifty-five years later, the $25 limit is unrealistically small in many business gift-giving situations. Fortunately, there are a few exceptions. The exceptions Here’s a quick… Read more ›

November 20, 2017

Year-End Business Tax Planning Strategies in Light of Tax Reform

It’s not too late! You can still take steps to significantly reduce your business’s 2017 income tax bill and possibly lay the groundwork for tax savings in future years. How to Defer Income Most small businesses are allowed to use cash-method accounting for tax purposes. If your business is eligible, cash-method management can help you tweak your 2017 and 2018 taxable income to minimize taxes over the two-year period. Here’s what you can do if you expect business income to be… Read more ›

November 3, 2017

House passes sweeping tax changes for individuals and businesses

  Update: On November 16, the U.S. House of Representatives passed the Tax Cuts and Jobs Act by a vote of 227 to 205. What are tax reform’s next few steps? On November 17, the Senate Finance Committee approved its own tax reform bill, and the full Senate is expected to weigh in on the bill after the Thanksgiving holiday. If the Senate passes its bill, the House and Senate will work to reconcile their two bills into a final… Read more ›

November 2, 2017

U.S. Treasury Department Recommends Significant Action on 8 Recent Tax Regulations

The U.S. Department of Treasury and the IRS recently issued their much anticipated report on several tax regulations that had earlier been identified for review in Executive Order 13789. The report recommends the complete withdrawal, substantial revocation or revision of all of the regulations, including one that had been especially dreaded by the owners of some family-held businesses and their heirs. Genesis of the recommendations Executive Order 13789 directed the Secretary of the Treasury, Steven Mnuchin, to identify significant tax… Read more ›

November 2, 2017

Year-end Tax Planning for Businesses

As the end of 2017 approaches, the prospect of dramatic tax reform makes year-end tax planning especially challenging for businesses. In late September, the Trump administration and Republican congressional leaders unveiled their Unified Framework for Fixing Our Broken Tax Code. The framework proposes reduced tax rates for businesses and changes to a variety of business tax benefits. But there’s a great deal of uncertainty over when — and if — tax reform will be implemented and which proposals could make their way into… Read more ›