Our Blog

How to avoid getting hit with payroll tax penalties

July 18, 2018

For small businesses, managing payroll can be one of the most arduous tasks. Adding to the burden earlier this year was adjusting income tax withholding based on the new tables issued by the IRS. (Those tables account for changes under the Tax Cuts and Jobs Act.) But it’s crucial not only to withhold the appropriate taxes — including both income tax and employment taxes — but also to remit them on time to the federal government.

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Home green home: Save tax by saving energy

July 5, 2018

“Going green” at home — whether it’s your principal residence or a second home — can reduce your tax bill in addition to your energy bill, all while helping the environment, too. The catch is that, to reap all three benefits, you need to buy and install certain types of renewable energy equipment in the home.

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Does your business have to begin collecting sales tax on all out-of-state online sales?

July 3, 2018

You’ve probably heard about the recent U.S. Supreme Court decision allowing state and local governments to impose sales taxes on more out-of-state online sales. The ruling in South Dakota v. Wayfair, Inc. is welcome news for brick-and-mortar retailers, who felt previous rulings gave an unfair advantage to their online competitors. And state and local governments are pleased to potentially be able to collect more sales tax.

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June 29, 2018

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Do you know the ABCs of HSAs, FSAs and HRAs?

June 28, 2018

There continues to be much uncertainty about the Affordable Care Act and how such uncertainty will impact health care costs. So it’s critical to leverage all tax-advantaged ways to fund these expenses, including HSAs, FSAs and HRAs. Here’s how to make sense of this alphabet soup of health care accounts.

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Choosing the best business entity structure post-TCJA

June 27, 2018

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, including partnerships, S corporations, and, typically, limited liability companies (LLCs). The top rate, however, dropped only slightly, from 39.6% to 37%.

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June 21, 2018

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Consider the tax advantages of investing in qualified small business stock

June 20, 2018

While the Tax Cuts and Jobs Act (TCJA) reduced most ordinary-income tax rates for individuals, it didn’t change long-term capital gains rates. They remain at 0%, 15% and 20%.

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2 tax law changes that may affect your business’s 401(k) plan

June 15, 2018

When you think about recent tax law changes and your business, you’re probably thinking about the new 20% pass-through deduction for qualified business income or the enhancements to depreciation-related breaks. Or you may be contemplating the reduction or elimination of certain business expense deductions. But there are also a couple of recent tax law changes that you need to be aware of if your business sponsors a 401(k) plan.

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The tax impact of the TCJA on estate planning

June 14, 2018

The massive changes the Tax Cuts and Jobs Act (TCJA) made to income taxes have garnered the most attention. But the new law also made major changes to gift and estate taxes. While the TCJA didn’t repeal these taxes, it did significantly reduce the number of taxpayers who’ll be subject to them, at least for the next several years. Nevertheless, factoring taxes into your estate planning is still important.

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Saving tax on restricted stock awards with the Sec. 83(b) election

June 6, 2018

Today many employees receive stock-based compensation from their employer as part of their compensation and benefits package. The tax consequences of such compensation can be complex — subject to ordinary-income, capital gains, employment and other taxes. But if you receive restricted stock awards, you might have a tax-saving opportunity in the form of the Section 83(b) election.

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Hire your children to save taxes for your business and your family

May 30, 2018

It can be difficult in the current job market for students and recent graduates to find summer or full-time jobs. If you’re a business owner with children in this situation, you may be able to provide them with valuable experience and income while generating tax savings for both your business and your family overall.

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Sending your kids to day camp may provide a tax break

May 24, 2018

When school lets out, kids participate in a wide variety of summer activities. If one of the activities your child is involved with is day camp, you might be eligible for a tax credit!

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The TCJA changes some rules for deducting pass-through business losses

May 21, 2018

It’s not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole proprietors, partners, S corporation shareholders and, typically, limited liability company (LLC) members can currently deduct — beginning in 2018. This could negatively impact owners of start-ups and businesses facing adverse conditions.

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Can you deduct business travel when it’s combined with a vacation?

May 14, 2018

At this time of year, a summer vacation is on many people’s minds. If you travel for business, combining a business trip with a vacation to offset some of the cost with a tax deduction can sound appealing. But tread carefully, or you might not be eligible for the deduction you’re expecting.

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Do you need to adjust your withholding?

May 8, 2018

If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan.

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Get started on 2018 tax planning now!

May 1, 2018

With the April 17 individual income tax filing deadline behind you (or with your 2017 tax return on the back burner if you filed for an extension), you may be hoping to not think about taxes for the next several months. But for maximum tax savings, now is the time to start tax planning for 2018. It’s especially critical to get an early start this year because the Tax Cuts and Jobs Act (TCJA) has substantially changed the tax environment.

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2018 - 04/30 - A review of significant TCJA provisions affecting small businesses

April 30, 2018

Now that small businesses and their owners have filed their 2017 income tax returns (or filed for an extension), it’s a good time to review some of the provisions of the Tax Cuts and Jobs Act (TCJA) that may significantly impact their taxes for 2018 and beyond. Generally, the changes apply to tax years beginning after December 31, 2017, and are permanent, unless otherwise noted.

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Tax document retention guidelines for small businesses

April 25, 2018

You may have breathed a sigh of relief after filing your 2017 income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records (or your computer desktop is filled with a multitude of digital tax-related files), you probably want to get rid of what you can. Follow these retention guidelines as you clean up.

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TCJA changes to employee benefits tax breaks: 4 negatives and a positive

April 16, 2018

The Tax Cuts and Jobs Act (TCJA) includes many changes that affect tax breaks for employee benefits. Among the changes are four negatives and one positive that will impact not only employees but also the businesses providing the benefits.

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A net operating loss on your 2017 tax return isn’t all bad news

April 10, 2018

When a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs. If when filing your 2017 income tax return you found that your business had an NOL, there is an upside: tax benefits. But beware — the Tax Cuts and Jobs Act (TCJA) makes some significant changes to the tax treatment of NOLs.

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You still have time to make 2017 IRA contributions

April 4, 2018

Tax-advantaged retirement plans like IRAs allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. The deadline for 2017 contributions is April 17, 2018. Deductible contributions will lower your 2017 tax bill, but even nondeductible contributions can be beneficial.

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Should you file Form SS-8 to ask the IRS to determine a worker’s status?

April 3, 2018

Classifying workers as independent contractors — rather than employees — can save businesses money and provide other benefits. But the IRS is on the lookout for businesses that do this improperly to avoid taxes and employee benefit obligations.

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Can you claim your elderly parent as a dependent on your tax return?

March 28, 2018

Perhaps. It depends on several factors, such as your parent’s income and how much financial support you provided. If you qualify for the adult-dependent exemption on your 2017 income tax return, you can deduct up to $4,050 per qualifying adult dependent.

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2018 Q2 tax calendar: Key deadlines for businesses and other employers

March 27, 2018

Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018.

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Home-related tax breaks are valuable on 2017 returns, will be less so for 2018

March 20, 2018

Home ownership is a key element of the American dream for many, and the U.S. tax code includes many tax breaks that help support this dream.

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Defer tax with a Section 1031 exchange, but new limits apply this year

March 19, 2018

Normally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like kind” exchange. However, the Tax Cuts and Jobs Act (TCJA) reduces the types of property eligible for this favorable tax treatment.

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Casualty losses can provide a 2017 deduction, but rules tighten for 2018

March 14, 2018

If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your 2017 federal income tax return. For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends this deduction except for losses due to an event officially declared a disaster by the President.

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Make sure repairs to tangible property were actually repairs before you deduct the cost

March 13, 2018


Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can provide businesses a valuable current tax deduction — as long as the so-called repairs weren’t actually “improvements.”

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Size of charitable deductions depends on many factors

March 6, 2018

Whether you’re claiming charitable deductions on your 2017 return or planning your donations for 2018, be sure you know how much you’re allowed to deduct. Your deduction depends on more than just the actual amount you donate.

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2017 tax filing deadline for pass-through entities is March 15

March 5, 2018

When it comes to income tax returns, April 15 (actually April 17 this year, because of a weekend and a Washington, D.C., holiday) isn’t the only deadline taxpayers need to think about. The federal income tax filing deadline for calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes is March 15.

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What’s your mileage deduction?

February 28, 2018


Individuals can deduct some vehicle-related expenses in certain circumstances. Rather than keeping track of the actual costs, you can use a standard mileage rate to compute your deductions.

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Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future

February 27, 2018


If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return.

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Tax deduction for moving costs: 2017 vs. 2018

February 22, 2018


If you moved for work-related reasons in 2017, you might be able to deduct some of the costs on your 2017 return — even if you don’t itemize deductions.

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Tax credit for hiring from certain “target groups” can provide substantial tax savings

February 20, 2018

Many businesses hired in 2017, and more are planning to hire in 2018. If you’re among them and your hires include members of a “target group,” you may be eligible for the Work Opportunity tax credit (WOTC).

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Families with college students may save tax on their 2017 returns with one of these breaks

February 14, 2018


Whether you had a child in college (or graduate school) last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return.

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Small business owners: A SEP may give you one last 2017 tax and retirement saving opportunity

February 13, 2018

Are you a high-income small-business owner who doesn’t currently have a tax-advantaged retirement plan set up for yourself?

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TCJA temporarily lowers medical expense deduction threshold

February 6, 2018


With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever.

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Claiming bonus depreciation on your 2017 tax return may be particularly beneficial

February 5, 2018


With bonus depreciation, a business can recover the costs of depreciable property more quickly by claiming additional first-year depreciation for qualified assets.

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State and local sales tax deduction remains, but subject to a new limit

January 30, 2018

Individual taxpayers who itemize their deductions can deduct either state and local income taxes or state and local sales taxes.

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2 tax credits just for small businesses may reduce your 2017 and 2018 tax bills

January 29, 2018

Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax.

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Can you deduct home office expenses?

January 23, 2018

Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction.

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Meals, entertainment and transportation may cost businesses more under the TCJA

January 22, 2018

Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law brings the reduction or elimination of tax deductions for certain business expenses.

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Material participation key to deducting LLC and LLP losses

January 19, 2018

If your business is a limited liability company (LLC) or a limited liability partnership (LLP), you know that these structures offer liability protection and flexibility as well as tax advantages.

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Your 2017 tax return may be your last chance to take the “manufacturers’ deduction”

January 17, 2018

While many provisions of the Tax Cuts and Jobs Act (TCJA) will save businesses tax, the new law also reduces or eliminates some tax breaks for businesses.

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Personal exemptions and standard deductions and tax credits, oh my!

January 16, 2018

Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025.

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Don’t be a victim of tax identity theft: File your 2017 return early

January 9, 2018

The IRS has just announced that it will begin accepting 2017 income tax returns on January 29

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New tax law gives pass-through businesses a valuable deduction

January 8, 2018

Although the drop of the corporate tax rate from a top rate of 35% to a flat rate of 21% may be one of the most talked about provisions of the Tax Cuts and Jobs Act (TCJA), C corporations aren’t the only type of entity significantly benefiting from the new law

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Infographic: A snapshot of how the new tax law affects individuals.

January 4, 2018

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The TCJA temporarily expands bonus depreciation

January 2, 2018

The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation.

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Tax Cuts and Jobs Act: Key provisions affecting individuals

December 27, 2017

On December 20, Congress completed passage of the Tax Cuts and Jobs Act. The new law means substantial changes for individual taxpayers.

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Tax Cuts and Jobs Act: Key provisions affecting businesses

December 26, 2017

The recently passed tax reform bill, commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), is the most expansive federal tax legislation since 1986. It includes a multitude of provisions that will have a major impact on businesses.

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This year’s company holiday party is probably tax deductible, but next year’s may not be

December 18, 2017

Many businesses are hosting holiday parties for employees this time of year. It’s a great way to reward your staff for their hard work and have a little fun.

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Should you buy a business vehicle before year end?

December 15, 2017

One way to reduce your 2017 tax bill is to buy a business vehicle by year-end.

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What you need to know about year-end charitable giving in 2017

December 14, 2017

Charitable giving can be a powerful tax-savings strategy:

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Our New Website!

Reed and Company is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.

Take a moment to look around our...

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