PBMares Accounting Blog

Changes to Virginia Sales Tax effective as of July 1, 2017

Posted by Lori Roberts, CPA on Jul 17, 2017 8:00:00 AM

Each year the Virginia Legislature passes changes to the Virginia Tax Code that impacts residents and those doing business in Virginia. While many of the changes can seem mundane or minor, there are two that will have a significant impact on two segments of Virginia Business, automotive service centers and retailers and contractors selling and installing tangible personal property. Both will likely require changes to POS retail and accounting systems in order to administer properly.

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Topics: Tax Planning, Construction

You don’t have to take business insurance costs sitting down

Posted by J. Denise Short on Jul 13, 2017 1:42:53 PM

Adequate insurance coverage is, in many cases, a legal requirement for a business. Even if it’s not for your company, proper coverage remains a risk management imperative. But that doesn’t mean you have to take high insurance costs sitting down.

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Topics: Tax Bites, Tax Planning

Does Your Charitable Contribution Qualify for a Deduction?

Posted by Theresa Leon-Loughmiller, CPA, MPA on Jul 7, 2017 9:00:00 AM

When it comes to preparing individual tax returns, many individuals wonder what kind of documentation they need to support their charitable contributions.  First and foremost, to qualify for a charitable contribution deduction, a contribution must have been given to a qualified charitable organization.  The Internal Revenue Service (IRS) website contains a link in to search for exempt organizations (https://www.irs.gov/charities-non-profits/search-for-charities).  Donations given to directly to an individual in need are not considered a deductible contribution but instead are considered by the IRS to be personal gifts.  Secondly, an individual can only deduct contributions if they are itemizing their individual tax return.  Generally an individual may be able to deduct up to 50 percent of their adjusted gross income, however, there are limitations.  Seek advice regarding your individual deduction limitations from a tax professional. 

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Topics: Not-for-Profits, Tax Planning

Fine-tuning your company’s compensation strategy

Posted by Michael Kennison, CPA , CIT on Jul 6, 2017 11:33:01 AM

 

As a business evolves, so must its compensation strategy. Hopefully, your company is growing — perhaps adding employees or promoting staff members who are key to your success. But other things can spur the need to fine-tune your compensation strategy as well, such as economic changes or the rise of an intense competitor. A goal for many businesses is to provide equitable compensation.

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Topics: Tax Bites, Tax Planning

Public Student Loan Forgiveness - A Great Way to Attract Employees to a Not-For-Profit

Posted by Nick Preusch, JD, LLM, MSA, CPA on Jun 5, 2017 1:44:38 PM

In 2007, President George Bush signed into law the Public Student Loan Forgiveness Program. This program allows people working in certain industries to have their student loans forgiven, tax-free, after 10 years. Usually people believe this program only applies to governmental employees. However, the law allows for employees of a 501(c)(3) not-for-profit to also qualify for student loan forgiveness. This is a great way to attract employees who may otherwise require a larger salary and a great way to keep employees at your not-for-profit.

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Topics: Not-for-Profits, Tax Planning

Could stronger governance benefit your business?

Posted by Kevin F. Reilly, J.D., CPA, CGMA on May 25, 2017 11:45:10 AM

Every company has at least one owner. And, in many cases, there exists leadership down through the organizational chart. But not every business has strong governance.

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Topics: Tax Bites, Tax Planning, Business Briefs

Six Strategies For Your Tax Playbook

Posted by Louise Clayton-Kastenholz on May 23, 2017 10:59:42 AM

I’m looking forward to tax day. No, I’m not in a time warp.  I do know that April 15th is behind us, and most people I talk to are relieved that they don’t have to think about taxes for another year (or in the case of those who extended their returns, until that last piece of paperwork shows up).  Often that sense of relief is due not just to the sense of getting through the process of the paperwork, but the whole thought process of dealing with the topic. 

But right now, now that it’s all over, is the best time to think about taxes, while the effects of this last filing season are fresh in the mind.  In sports, the coach looks at the team’s performance after each game and studies the strategies for weaknesses while the results are still fresh and the team has time to prepare for the next game.  Here we are with almost eight months left in 2017 to improve our game. 

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Topics: Tax Planning, Estate Planning

Turning next year’s tax refund into cash in your pocket now

Posted by Nick Preusch, JD, LLM, MSA, CPA on May 19, 2017 10:19:56 AM

Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.

Fortunately, there is a way to begin collecting your 2017 refund now: You can review the amounts you’re having withheld and/or what estimated tax payments you’re making, and adjust them to keep more money in your pocket during the year.

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Topics: Tax Bites, Tax Planning

Real estate investor vs. professional: Why it matters

Posted by J. Denise Short on May 18, 2017 2:07:30 PM

Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward.

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Topics: Tax Bites, Tax Planning

Operating across state lines presents tax risks — or possibly rewards

Posted by Lori Roberts, CPA on May 9, 2017 3:43:52 PM

It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.

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Topics: Tax Bites, Tax Planning