Listen to Freed Maxick tax directors describe the “must know” news for business owners
There are a significant number of new rules and opportunities for business of all kinds and sizes to minimize their Federal taxes as a result of the Tax Cut and Job Act. One year later, we’re happy to present these recorded interviews with Freed Maxick Tax Directors, Bill Iannarelli and Don Warrant discussing aspects of the new Tax Cuts and Jobs Act that business owners need to know.
In this recorded interview, Bill talks about how the new Act allows for the full expensing of real property placed in service after 9/27/17, and expanded definitions of qualified real property. Listen now.
Bill discusses the 20% tax pass through for domestic qualified income for selected business types in this recording, including eligibility requirements and specific exclusions. Listen now.
Bill presents his observations and insights on changes made to entertainment expensing – what’s in, what’s out and what employers need to know about providing meals to employees. Listen now.
In this interview, Don talks about two important changes: businesses having more opportunity to expense assets in the year of purchase, and the ability of some business owners to reduce their taxable income by 20%. Listen now.
Don describes an opportunity for real estate investors in opportunity zones to defer Federal taxation of capital gains until 2026. Listen now.
Connect With Us
If you would like to discuss how Federal and State changes to tax codes affect your situation, please call the Freed Maxick tax team at 716.847.2651 to schedule a complimentary Tax Situation Review. Or, click on the button, give us your contact information, and a member of our staff will connect with you to schedule a discussion.
For more insight, observations and guidance on the new Tax Cuts and Jobs Act, visit our Tax Reform webpage.View full article
An overview of business intelligence technology, skill sets and processes that turn data into insights and insights into actions.
For the past several years, business intelligence has consistently been identified by executives as a top 3 initiative for their organization.
They’re looking to data to identify opportunities to optimize efficiency, reduce waste, mitigate risk, improve revenue (or collect more of what is owed to you), reduce overtime costs, and identify the most profitable customer relationships.
The road to fully functional, well received and highly impactful business intelligence capabilities is a “just right” combination of skilled human resources, processes, and sophisticated technology/software for mining, monitoring and reporting on data trends.
That combination needs to include management action for turning mined data insights into actions and measurable improvements.
For organizations looking to make an investment in business intelligence (or for those looking to upgrade their existing resources and technologies), this blog can serve as an overview for the key components you’ll need to ensure that you’ll get the return on investment you seek.
Source: BI-Survey.com: Finding the Right Business Intelligence Tool
The Technology of Business Intelligence
There are quite a number of tools, technologies and software available for business intelligence, and with abundance comes the opportunity to craft a business intelligence solution that’s exactly right for your firm and its situation. Whether it’s securing insights for growth or even benefiting from opportunities embedded in real time data, its no wonder that big data and business analytics is predicted to grow to a $187 billion market in 2019.
Many firms turn to consultants to help them select, customize, implement, monitor and train staff on using business intelligence. Generally speaking, BI solutions are integrated with existing systems, but can be a standalone application or even part of ERP, CRM or ecommerce systems.
Business Intelligence Inside Your Company
Successful business intelligence implementation require that your organization make investments in individuals who have the skills to:
- Build data migration jobs to move critical data to a single data repository,
- Manage those data stores and optimize their performance,
- Understand the organization’s business imperatives and related data
- Present that data using the appropriate toolsets and software, and
- Make it simple for stakeholders to access that data and leverage for making informed decisions.
Business intelligence can have a steep learning curve and be challenging to roll out in large organizations. Your consultant should be coming to the table with a well-crafted plan for managing the human equation of business intelligence, including a deployment schedule, staff training, monitoring and real-time assistance, particularly in the early stages of adoption.
With a well-crafted roadmap in place, companies can efficiently and effectively move from using static spreadsheets for managing their business to interactive and dynamic tools built on real and/or right-time information.
Business intelligence Investments and Freed Maxick
Business intelligence is a path to significant competitive advantage if staffed with the right team and implemented with the right technology. However, investments in business intelligence hardware and software are expensive, the skill sets needed are relatively scarce in the local job market (thus also expensive), and the ROI on those investments take time to realize given the learning curves and stops/starts of organizations on their business intelligence journey.
At Freed Maxick, we’ve already made those investments in best-of-breed technology, experienced DBAs and business intelligence developers. We offer business intelligence services that rapidly enable an organization to make the leap from static spreadsheets to interactive and dynamic dashboards with real or right-time information.
Whether you need a fully outsourced team or merely supplemental assistance on specific business intelligence initiatives, we’re certain we’ve got the right approach to suit your needs.
To discuss your organization’s situation and explore the possibilities of implementing a business intelligence capability, call me at 716.847.2651, or connect with me here.View full article
Listen to Tax Director, Don Warrant’ s take on 2 Key Changes impacting Business Owners in the Tax Cuts and Jobs Act
Freed Maxick presents three recorded interviews with Tax Director Don Warrant on issues of importance for business owners related to tax minimization opportunities resulting from the new Tax Cuts and Jobs Act.
If you own a specified service business as either a sole proprietor or as an owner of a pass-through entity, you might not benefit from a new Federal tax deduction and end up paying tax on 100% of qualified business income, instead of 80%. Hear more about this in Don’s recent interview. Listen now.
Under the new tax law, any business that meets a new $25 million gross receipts test is eligible for using the cash method of accounting. Hear Don talk about the benefits and steps you need to take now to capitalize on this opportunity and minimize future taxes. Listen now.
For your convenience, listen to Don’s treatment of both issues in this one podcast, presented in association with Entercom/WBEN’s Growing Buffalo campaign. Listen now.
Let’s Talk Taxes
Schedule a complimentary Tax Situation Review and we’ll discuss how changes to the Federal and State tax laws can affect your tax situation.
For more insight, observations and guidance on the new Tax Cuts and Jobs Act, visit our Tax Reform webpage.View full article
Important Updates for Certain Business Entities in the Silver State
Nevada does not impose a corporate or personal income tax, which has made it an attractive state for many businesses. However, on June 10, 2015 a bill was signed enacting the new Nevada Commerce Tax, which is effective July 1, 2015. The first Commerce Tax Return is due 45 days after the tax year end, or August 15, 2016, for fiscal year July 1, 2015 through June 30, 2016.
The Commerce Tax is an annual gross receipts tax imposed on business entities engaged in business in Nevada that have more than $4,000,0000 of Nevada gross revenue. Business entities subject to the new commerce tax include, but are not limited to:
- Sole proprietorships
- Limited liability companies
- Joint ventures
- Any other person engaged in business
Certain business entities are specifically exempt from the commerce tax, including IRC section 501 (c) non-profit organizations. Business entities not organized or incorporated in Nevada will need to complete a nexus questionnaire to determine if the Commerce Tax applies.
The Commerce Tax is based on gross receipts apportioned to Nevada, less certain exclusions and deductions. There are no deductions for cost of goods sold or other expenses. However, there is a $4,000,000 allowable standard deduction from gross receipts to arrive at Nevada taxable revenue. The Nevada taxable revenue is then multiplied by the applicable tax rate. The tax rate for each business is based on its NAICS code (North American Industry Classification System) and the rates vary from 0.051% to 0.31% depending on the industry.
In addition, the tax is imposed on a separate entity basis. It is important to note that the $4,000,0000 standard deduction can reduce business revenues subject to tax but does not exempt a business from the filing requirement. However, a business entity with Nevada gross receipts of under $4,000,000 during the taxable year can utilize a simplified reporting method.
The complexities involved with this new tax include sourcing of receipts, determining whether a business entity is subject to Commerce Tax, and the administrative aspects associated with the fiscal year and due date.
Various Tax Credits Available to Industries
Author: Jeff Zawada, CPA
Most of the energy used in the United States comes from Fossil Fuels; petroleum, coal, and natural gas, with crude oil products currently used as the dominant source of energy.
According to the EIA (the United States Energy Information Administration) and OPEC, market fundamentals and expectations strengthened in January 2013; forecasting growth from 110,000 bpd to 1.05 million bpd over the course of the next 22 years. While only a 12% growth rate, compared to the 26% growth from 2004-2012, EIA projections are conservative and likely to increase.
What credits are available?
The IRS has specified tax credits for the oil and gas industry; at the state level legislation varies. “Fracking” — more formally known as high volume hydraulic fracturing — involves injecting large amounts of sand, water and chemicals deep underground at high pressures to extract natural gas from rock formations. The drilling is concentrated in the Marcellus Shale formation, a deep repository that runs through West Virginia, Ohio, Pennsylvania and New York. Natural gas drilling, while maintaining certain growth expectations, is still hitting barriers in New York State.
Permit applications for conventional vertical gas well, which are still allowed in NYS, have dropped from roughly 600 in 2008 to below 200 in 2012.
Site specific special assessment reviews have to be done on an individual basis.
Currently Governor Cuomo is expected to announce a formal decision after the Geisinger Health System study, launched in Pennsylvania by Degenstein Foundation, is finished.
State by State Analysis: Quick snapshot
Pennsylvania has created over 140,000 jobs in the last few years in the drilling industry. With the launch of the Geisinger Health study, PA will provide deeper insight into drilling impact and incentives across the board.
Ohio’s Knox and Stark Counties saw the most drilling activity since 2010, at 43 wells drilled. In total Ohio currently has 11 counties reporting drilling. The state of Ohio also maintains a cost recovery assessment, as per law 1509.50. All money collected, pursuant to section C of this law, shall be deposited in Ohio state treasury to the credit of the oil and gas well fund.
In New York State, the NYS Energy Research and Development Authority (NYSERDA) has recently provided incentives for alternative fuel trucks. Credits such as: vouchers of up to $40,000 for the purchase of compressed natural gas, hybrid electric and all-electric Class 3 through 8 trucks operating in New York City, and vouchers that cover up to 80% of the cost of purchasing and installing emission reduction equipment for medium- and heavy-duty diesel vehicles operating primarily in New York City; requests for pre-qualification are now being accepted- currently there is a wait list. E85, compressed natural gas, and hydrogen fuel that is used exclusively to operate a motor vehicle engine is exempt from state sales and use taxes. Additionally, NY cities and counties may reduce the sales and use tax imposed on 20% biodiesel blends (B20) to 80% of the diesel fuel tax rate. The exemption and rate reduction are in effect until September 1, 2014 (Reference from: New York Tax Law 1111 and 1115).
What credits are available to your business? Have you maximized your IDC planning? Learn more HERE.
Freed Maxick understands the growing complexity and nature of the oil and gas industry. We can navigate industry tax filing requirements, locate tax credits, and help with financial statement audits, reviews and compilations. Still have questions? Contact us to connect with our experts, or call us at 716-847-2651.