B.A. Harris Blog

Second Quarter Estimated Tax Payments

With summer knocking on the door we just wanted to remind estimated tax payers your second quarterly payment is due next Friday, June 15th. If you have any questions, don’t hesitate to contact our office. We hope you have a wonderful summer!

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Home Equity Interest - Deductible?

For many taxpayers, Home Equity Loans and HELOCs, are useful financial tools for easily accessible cash at interest rates that are typically lower than most commercially available credit cards.  Due to their low interest rates, Home Equity Loans have been an enticing option for taxpayers looking to consolidate debt into a single, low cost payment, while also reaping additional beneficial tax treatment. In previous years, similar to a home mortgage, any interest paid on a Home Equity Loan/HELOC during the current tax year was deductible up to a government-imposed limit.

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Informational Return Filing Requirements

W-2, W-3, and 1099-Misc information returns Beginning with the 2016 tax year, the due dates for filing Forms W-2, Wage and Tax Statement, W-3 transmittal forms and Forms 1099-Misc have been moved up. Previously, the federal filing due date of Copy A of these forms was the last day of February.  These federal filings are now due to the Internal Revenue Service on January 31st.  Additionally, all copies to recipients must be furnished by January 31st.

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Auto Fringe Benefits: does a company car make sense?

Auto Fringe Benefits: does a company car make sense? Clients frequently ask us whether or not they should buy a car or truck in their business, especially as part of a year-end tax planning strategy. Invariably the answer is “it depends”. Perhaps your business could use some upgrades or fleet additions in which case the expenditure would easily be justified. But what if your company doesn’t necessarily need more? When would an addition to your fleet make sense?

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Per Diem Rules

If you or your employees travel for business, it might be beneficial to implement a qualified per diem plan. Rather than reimbursing for actual expenses, an employer can provide a per diem amount based on IRS approved rates. One of the major benefits of the per diem method is the more lenient recordkeeping – employees typically are not required to keep receipts. Instead, a company simply pays the allowance to the employee.

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