New Year, New Tax Season!
2019 is almost here, and that means so is tax season. While we usually take a moment to discuss taxes and your business, we want to change it up and say just how thankful we are of each and every one of you. As a local business, we are appreciative of every person who walks through our doors in need of tax preparation or understanding. We enjoy working with local business professionals who seek our services.
In the new year, we hope that you continue to look to Pathways as a company you can trust and call on. You can keep up to date on our company, local events, and other fun topics through our social media, so be sure to give us a follow!
Facebook: Pathways Consulting, LLC
LinkedIn: Nanette Slappey West
Thank you, and Happy New Year from all of us at Pathways!
Why Use A Professional Tax Service For Your Business?
When it comes to filing taxes for your business, you don’t want to end up with mistakes and money lost. To ensure a proper filing process, using a professional tax service is recommended. At Pathways, instead of just filing your taxes for you, we try our best to help you understand your taxes thoroughly. So, how do you file taxes for a small business, and why is it important to use a professional?
Keep All Records
Record keeping is the most important step in the tax filing process for businesses. If there is no record, it never happened, and therefore makes it much more difficult to get correct information. In the process of keeping data, we suggest using a bookkeeping service like Quickbooks to store information used within the filing process.
Use The Correct Form
It is important to know the differences between the tax forms and which is appropriate for a business. The form most used for small businesses is a Schedule C or Form 1120. Schedule C is a simple form that is easier to calculate and input information.
Deadlines are Real
To make the filing process the easiest, be aware of the filing deadline for taxes on small businesses. We are very serious when it comes to this because of the repercussions that may occur due to late filing.
Pathways is here to help your business breeze through tax season, so why not make your appointment today?
Tax season is quickly approaching, and Pathways wants to ensure that your business has their taxes under wraps! Here are a few tax tips for your business!
Use Quickbooks Payroll
When it comes to payroll, it can be difficult to manage by hand and keep up with all the employees of your business. In order to combat that, and provide relief come tax time, we recommend using Quickbooks payroll!
File your Taxes on Time
Many have been there, in crunch time, and end up missing the deadline for their taxes. Don't let that be you with your business. Ensure you get your taxes done on time, if not early, by using Pathways! Call and schedule your appointment today!
Take Deductions Seriously
When it comes to taxes and running a business, it helps to know what deductions you can file for and have. It is best to communicate with a Pathways team member to discuss the deductions that you and your business qualify for.
We hope to see you soon for your tax appointment, make sure to get everything you need to get done early so you do not have to pay any late fees come 2019!
Did you know The Tax Cuts and Jobs Act was issued and installed more than a 100 new tax provisions? Don’t miss out on this fantastic news, and come to Pathways where we can start planning your taxes NOW and save you money in the upcoming tax season!
Pathways will makes sure you itemize your deductions appropriately with the new 2019 installment! We will help ensure that either the standard deduction or itemizing is what is in your best interest. When it comes to medical expenses, the threshold for deductions has returned to the past 10%, which make it difficult to qualify once again. These thresholds would include payments made to doctors such as care physicians and dentists, optometrists, and even reaching to equipment such as glasses, oxygen tanks, and medications.
For those who are high-income taxpayers, the recommendation to offset capital gain remains an option. This is where the option to sell underperforming investments comes into play; some have the option to defer income into January by delaying invoices to where payment arrives within the following year’s taxable income. For the charitable hearts, you now will have to itemize deductions if you want to claim deductions on the donations you gave. Take your IRA and 401K seriously by ensuring you are putting away the cap amount in each every year. This will also shrink your taxes!
Don’t waste any more time, as November comes to an end here soon, there’s only one month left within this year to prepare for tax season. Take advantage of that and head over to Pathways Consulting where we can help you prepare for tax season NOW!
Financial Transaction Tax
A financial transaction tax is characterized as a levy on a particular transaction of a certain purpose. It is also important for any business and owner to be conscious of. Since the start of the first financial transaction bill in 2008, financial transaction tax bills have been proposed multiple times since 2009 in the U.S.
The bill that is in use now, suggested a tax of 0.25% of stock, 0.02% of features contracts on the buying or selling of specified commodity, and 0.02% of credit default swaps between two firms would be implemented. The projected revenue of this tax, being $150 billion, would be used deficit reduction and job promotion.
While this tax does not apply to families, the businesses within the United States are subject to adhering to these financial transaction tax policies. What do you think about this tax? Is the revenue from it going to appropriate places, or would you rather it be put elsewhere? Tell us in the comments below!
Pathways focuses on helping and educating the businesses within the Summerville area and strive to see the businesses grow! Call us today for any of your accounting or tax needs!
Tax Planning: Why it is Important
We have talked in the past of how important organization is to how you approach your taxes. We may not need to remind you but tax season is approaching quickly and you need to be prepared. We suggest you start planning your taxes now, so here are a few ways you can start planning your taxes in advance to make the January tax season simple.
Tax planning can be done throughout the year by taking into consideration tax law provisions, tax breaks, and using every tax credit and deduction available to you. Take advantage of the legal ways you can save on your taxes, if you do not understand the ways listed above, come into Pathways and sit down with an expert who will explain everything to you.
It is also important that when your tax planning you take the time for financial planning. The last thing anybody wants to do is get to tax time and realize that they owe money on taxes. If you plan financially to have money saved up for this specific reason, tax season will come as less of a shock.
Everyone knows how stressful tax season can be but with the above tips you can ensure your tax season will run smoothly. If you would rather meet with an expert to sit down and ask your questions, please feel free to contact Pathways for an appointment.
One of the many perks of being a large corporation is that you are eligible for larger tax breaks. They can write off things that normal small businesses just do not have the means to do so. For instance, large corporations can write off research and experimentation. It does not make sense for a small business to spend money on research just to receive a tax break because they have much less revenue.
There are many more breaks that large corporations can get like deferral of income from controlled foreign corporations, exclusion of interest on local and state bonds, and deduction of domestic manufacturing just to name a few. Of course, these are far outside the reach of small business owners’ ability to take advantage. Meaning even though large corporations will pay a larger amount of money in taxes they do not take the same tole as taxes on smaller businesses.
This is about to change. Annette Nellen, the Executive Committee chair, testified before the Senate’s Small Business and Entrepreneurship Committee in favor of lowering taxes for small businesses as much as corporations. In her testimony Nellen says, “Congress should continue to encourage, or at least not discourage, the formation of sole proprietorship and pass-through entities. If Congress decides to lower corporate income tax rates, small businesses should receive a lower tax rate as well.”
Hopefully, the future will hold an easier time for small business tax rates. The whole committee agreed that without tax accounting software small businesses will have an extremely difficult time optimizing and filing their taxes. Having a one stop place, for small business owners, to receive small business advice and have a certified professional file their taxes, in a way that will benefit them the most, is still of great importance. As the tax laws change, small business owners that can save money on their taxes will be ahead of the game and have more capital to invest in their business to promote growth.
The Pathways Team