Anthony Sykes & Company

          It is that time of year again. The doors are open and the IRS is now accepting Tax Return filings. Taxpayers, Businesses, and Tax Professionals take months to prepare for this time of year. All that work culminates in what is a busy and productive time of year. In recent years, this has also meant an increase of necessary security measures. With each Tax Season, the attacks of data thieves have become more cunning and also more effective.           This year Small Business owners and Payroll personnel need to be especially on alert. A popular scam involves targeting company executives or the Payroll Department demanding information regarding Form W-2’s for all employees. There were 100 reported instances of this in 2016, last year that number jumped to 900. This can sadly lead to identity theft of the employees as well as the business. Businesses that fall prey to this theft are encouraged to report wha...

          At first, there was just an idea. That idea grew into a plan, and it took shape. It took on its own life, started to function and has established itself in the field where it provides a service. Many do not get this far, but if you are a small business owner, then congratulations are in order. You have achieved your goal. But the story doesn’t end there.           Just like in life, the business needs goals to reach in order to continue to thrive. It is always better to continue to move forward, instead of standing still. This can involve a variety of different areas. Sometimes it means that it is necessary to look at what the competition is doing. Business Valuation can be a valuable tool to staying in line with, or ahead of what your industry is doing. We can compare your detailed information and show you how you are faring compared to other businesses. Sometimes costs change or a particular field may...

          The new Tax Law and Reforms of December 2017 have created some new situations that Taxpayers need to adjust to. Now that there is firm limit of $10,000 on any deductions made on a Tax Return that come from State and Local Taxes ( SALT ), many have been rushing to prepay taxes and expenses in 2017 that would exceed the new limit. This will be legal for estimated 4 th Quarter 2017 earnings and what will appear on the 2017 Tax Return. With that understanding, it must be noted that Congress has specifically said it is prohibited to make prepayments for income tax , to be used as SALT deductions. This will also apply to any earnings in 2018. One loophole has been closed.           However the same cannot be said for Property Tax. In fact, there was nothing stated on the matter at first. This led many to rush to prepay for 2018. Now the IRS has weighed in on this area. Their answer is a clear “Yes” or “No”...

          It is being said, that there has never been a more diverse market for small business opportunities. There are so many ideas that are taking shape, along with brilliant creativity that is bringing new life into established industries and fields. A great deal of planning, care, and focus needs to be applied to create a business.           Before a business can start to function, it must have the correct permits to operate and be incorporated. These are basic steps for any business and cannot be ignored. Picking up from our last post, when a new business opens, the flow income and expenses will start. In reality, those records should actually start before the doors open, it just gets faster afterward.           This is a very stressful time for every business. Many costs need to be tracked, whether they are recurring or one-time, to make sure they don’t get ...

         With the new Tax Laws that have now gone into effect, businesses will see a big change in their finances. The most talked about aspect, is that the tax rate has been lowered to 21%. This is true, but it is not the only adjustment that businesses need to get familiar with.           What is determined to be “qualified business income” from companies, such as LLC’s, Sole Proprietorships, or Partnerships, can become “pass through” income. If this “qualified income” is passed through to an individual, trust, or estate, then 20% of it can be deducted from the Federal Tax rate. This can be a nice option, but it is limited in availability. It will not be an option for certain types of businesses including those in the Health, Law, or Financial services fields. This deduction option will end in 2026. Considering how new this law is, it would be the course of wisdom to seek advice from a Qualified Tax Professional ...

        It can be said, that there has never been a more diverse market for business opportunities. There are so many ideas that are taking shape, along with brilliant creativity that is bringing new life into established industries and fields. A great deal of planning, care, and focus is needed to create a business. There are many considerations that will always play a factor in how a business starts and will grow. This is an exciting time, and timely guidance will help to avoid potential problems.           The firm of Anthony Sykes & Co has significant experience in supporting and guiding small businesses. When a business is starting, it must choose a legal structure. This choice will affect how much will be paid in taxes, paperwork needed, and the liability of all involved. It will be very difficult to change this structure later. Each option has its own unique characteristics and we can clearly identify how t...

In the event that you own property and plan to use it exclusively to gain rental income, there are certain Federal Tax responsibilities that must be met. Understanding this in the beginning can allow for a relatively smooth time as a property owner in collecting rent, and easy preparation for Tax Returns or even an audit. All income must be reported, this includes rental payments, security deposits (if they will not be returned), or any charges for a broken lease agreement. This can also include expenses that are paid by the tenant, especially if the rental agreement does not obligate them to pay for those expenses. All costs related to ordinary and necessary management, conservation, and maintenance of a property is tax deductible. This would include the costs of supplies, repairs, and materials. Mortgage interest and property tax can be deducted as well. The costs of improvements are never included as a deductible expense.          These are all detailed...

         It seems today, that the only constant that we can rely on is change. Whether that is true or not, there are many things that we do need to be aware of, and adjust to. There are waves of change that hit us and it's our responsibility to keep moving forward. That is especially true now.          With all of the changes that have recently taken place, trying to look ahead and plan for the Tax Year of 2018 is very different than it was in 2017. The brackets have changed and overall taxes have changed. This is a situation that will require some patience. It is needed because no one can say for any certainty how things will definitely work out.           One reason this is true is because the IRS has not yet issued guidelines on what needs to be done in different situations. Paychecks, for example, may look the same once or twice in the year before pa...

         The new change to the Federal Tax code is the largest action to have taken place in the area of finance last 30 years. With that understanding, it can honestly be said that almost nothing will stay the same. Now would be a good time to learn the different details of what is in this law and what it will do.           When filing a Tax Return, it has been a normal practice to deduct any State and Local Taxes ( SALT ) against the Federal Tax. This would mean a Taxpayer living in a state with Income Tax, such as California, could use their State Income, Sales, and Property Tax to pay a smaller Federal Tax amount. In essence, they would not have to pay these taxes twice. One of the largest changes to the Tax Code is in regard to this aspect of how Taxes are handled.           Starting in 2018, these SALT deductions will still be allowed, but they will be limite...