DeFreitas & Minsky Accounting Blog

The recent Federal tax reform package could significantly cut into your tax refund next year. The Tax Cuts and Jobs Act greatly reduces the amount of property tax a homeowner is eligible to deduct in 2018.

If you run a business, you know expenses pile up quickly. But, the good news is that you can get some of that money back. Companies that turn a profit are eligible to claim many deductible business expenses come tax time.

A business’ taxable income is the portion of its profits that are subject to Federal and State income tax. This can be calculated by subtracting permissible tax deductions from gross sales. It’s an important figure to know, because it helps you determine how much of your business’ profits you will ultimately be able to keep.

Although the recent Federal tax overhaul probably padded your paycheck a little, your old tax withholding form could cause you to receive a financial surprise when you submit your 2018 tax return.

“Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation,” said Acting IRS Commissioner David Kautter.

If you are a new homeowner or have never applied for the New York State STAR credit, you may be able to save hundreds of dollars on your next tax bill. The state School Tax Relief Program, also known as the STAR Program, is a school tax rebate program that annually reduces homeowners’ school district property taxes on their primary residences.

If you live in New York, you must pay state income tax to support municipal services. Although New York State’s personal income tax is structured similarly to the Federal income tax, it has its own tax rates and brackets.

A sole proprietorship is the simplest type of company to start and operate. It is an unincorporated business owned by one individual in which there is no legal separation between the company and the owner. Sole proprietorships are also known by the IRS as “pass-through” entities, which means that business revenue passes through the company and are taxed as personal income. Sole proprietorship taxes are relatively simple to calculate, but there are several important things you need to know before you file.

There were several important updates to the tax code in 2017, which could affect your Federal income tax return preparation. From tax bracket adjustments to higher available standard deductions, these new laws could mean a larger tax refund check in 2018.

As the book closes on 2017, it’s time to time to think about taxes again. If you own a business, you will need to start preparing your paperwork soon. Whether you choose to hire a local accountant or not, this business tax return checklist provides an overview of what you will need to have in hand.

Books are always a great holiday gift, but it’s never easy to find a quality read. If you have a business leader on your shopping list, you could impress them with one of these three best finance books of all time.