Eliminating Interest Deductions and Tax Reform Updates

Since the Inauguration of Donald Trump as President, Tax Reform has ground to a halt, as Health Care Reform and other more controversial matters have captured Capitol Hill’s attention.  One little noticed proposal some Congressmen are favoring is the elimination of the business interest deduction on loans and other debt. 

Is it Really the IRS Knocking?

With continuing phone, e-mail and in-person scams rampant, in this segment of our Tax Update, we will help you understand how and when the IRS contacts taxpayers, and how to determine whether a contact is truly from an IRS employee. 

While the IRS initiates most contacts through regular mail delivered by the U.S. Postal Service, IRS employees do in fact make official, sometimes unannounced, visits to taxpayers as part of their routine casework. Visits typically fall into three categories:

Start-up Expenses

If you are an existing business owner who is considering expanding into a new line of business or a new owner who incurred costs starting your business, you need to be aware of start-up expenses.  Start-up expenses are a special category of tax deductions which would otherwise be nondeductible until the business is disposed, but can be expensed up to a limit with the balance amortized over 15 years. 

The Proposed Border Adjustment Tax

A business tax reform proposal by Republicans in the U.S.

Fully Deductible Meals and Entertainment Expenses

Summer is here, and that means it is time to get outside and enjoy the sunshine! If your business hosts summer employee outings then the business is eligible to write-off 100% of the expenses for tax purposes. So what are the rules for deducting meals and entertainment expenses?  That is what we will explain in this segment of our Tax Update.

Many business owners assume that all meals and entertainment expenses are automatically subject to a 50% limitation.  This is not necessarily so. There are many meal and entertainment expenses which are 100% deductible.

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