The IRA contribution limit for 2016 is $5,500. This amount is unchanged from 2014 and 2015. For those age 50 and older, the limit is $6,500. But, if the taxpayer or a spouse is covered by a retirement plan at work, they may not be allowed to make a traditional or Roth contribution, or the contribution amount… …Continue Reading
The compensation limit for 2016 is $265,000. This represents the maximum amount that can be considered when calculating an employee’s portion of the employer’s contribution. The limit is indexed for inflation each year. The Internal Revenue Service announces the revised figure each year.
It isn’t too late to make a business resolution this year to work more effectively in and on your business! We want to help you get excited about your business again. It’s all about working smarter, not harder. By streamlining and delegating tasks, keeping a well-organized and stocked office, and providing a consistently enjoyable workspace, your… …Continue Reading
Cash flow management is an important part of any CFO’s job. Strong cash flow management practices often mean the difference between the success and failure of a company. In order to improve cash flow management, financial leaders should adhere to these tips: Thoroughly examine accounts receivable: It is very easy for cash to be tied up… …Continue Reading
An S corporation can only have one class of stock. If it violates this requirement, it may cause the corporation to lose its eligibility to be an S corporation. An S corporation is treated as having only one class of stock if all of the outstanding shares of stock confer identical rights to distribution and… …Continue Reading
A single-member LLC that does not file a classification election will be classified as a disregarded entity. Income and expenses from the business will be reported on Schedule C with the owner’s income tax return. The member has the option for the LLC to not be classified under these default rules by filing an election…. …Continue Reading
Let’s say you have a loss from a limited partnership you invested in, or you are a shareholder in an S Corporation and have a flow-through loss. You have to determine if you’ll be allowed to take the loss on your tax return; it is not automatically allowed. The first limitation is basis. You must… …Continue Reading
At its most basic level, cash flow forecasting helps a business survive. By knowing exactly what cash you have coming in and going out and when those transfers occur, you ensure you have enough cash to continue operating from day to day. But there are other, often related, reasons to improve your cash flow forecasts,… …Continue Reading
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double… …Continue Reading
The 2016 rate for business driving is 54 cents per mile, down from 57.5 cents per mile in 2015. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.