Anthony Sykes & Company

        As more people begin to gain a real understanding about how the Tax Cuts and Jobs Act ( TCJA ) will affect their taxes, some are unhappy with the changes. As a result, certain states have taken action to get around some of the provisions laid out in the TCJA . One key issue that has come up is in the area of State and Local Tax ( SALT ) deductions. In states with a high income tax, Taxpayers were able to deduct that from their Federal income tax for the full amount. This ability is now limited to $10,000, but some states are responding with their own laws.                     A few states feel they have been impacted the most and three of them were first in line to write some very unique legislation. New Jersey signed their law on May 4. It gives cities in that state the ability to start their own charitable funds. Since limit for SALT deductions does not cover ...

        In the ever-changing business world, there is a new and growing area of the workforce. There are more job opportunities set up with the premise of being able to set you own schedule and fit that job into your life however you want to. This certainly has its appeal for many people. A key aspect of this equation for the business is that it would categorize people in these jobs as Independent Contractors. That time may be coming to an end.           In a ruling by the California Supreme Court, the classification standards to determine if a worker is an Independent Contractor or Employee have changed. The method used in this case is the same that is used in Massachusetts and New Jersey. The consequences of a Contractor becoming an employee are substantial. For a business, this means that they will have a greater Payroll Tax responsibility among other things. An individual will see that taxes are withheld when they...

        One aspect of US tax law deals with the subject of American citizens who have taxable income in other countries. This was directly addressed in 2010 by the Foreign Account Tax Compliance Act . The goal was to keep US Taxpayers from being able to hide money overseas. This is accomplished by making foreign banks responsible for reporting all accounts held in the name of US citizens to the IRS.           The United States has a citizenship-based tax system. This means that an American must pay US taxes on their income, no matter where they live. This is similar to the way US based corporations are taxed. However, there are many people who inherited this citizenship from a parent, or were born in the US and raised in another country but feel they have no real ties to this country. Their income is still subject to US taxation. For many of them, there are years of penalties and interest that have accumulated over a l...

          There are some critical details that should be important to every Small Business Owner. No matter what industry the business may be a part of, there are necessary decisions that must be made. This certainly makes the case for using a qualified tax and accounting professional to assist with the bookkeeping. This will give peace of mind in a variety of ways.           Keep finances up to date. When there is an eye on the cash flow of the business, problems can be caught soon. This will make issues easier to fix instead of waiting until the end of the quarter or year. This will also allow for the business to make sure they are current with all of their tax obligations. When this is achieved, the multiple Tax Deadlines that are required for businesses will not arrive as a surprise.           With these essential tasks being cared for, a business owner can fo...

         Now that Tax Season is over and you have filed your Tax Return or received an extension, it can seem to be a time to rest. However, some may be concerned about a potential audit in the future. That is never an enjoyable process, but let us take a closer look at what the odds actually are.           In reality, just over 0.5% of all individual Tax Returns are selected for an audit. Most people do not need to have a morbid fear of this occurring to them. But there are different factors that can change this percentage. For example, those who do not own a business, claim no Tax Credits, or make less than $200,000 have about 0.2% chance of getting an audit. These individual tax filers will have simple returns that are less likely to set off any IRS red flags. The opposite can also be true.           Areas of Tax Credit, business and rental income, along with the fo...

          In this series of articles detailing suggestions for businesses, there is one point that has become abundantly clear: running a business is hard. That difficultly is only increased when it has anything to do with cannabis. It’s legal in some states, being considered in others, but is still illegal at the Federal level. This is just one reason why these businesses have the odds stacked against them.           This underlying fact has led to a situation where Cannabis entrepreneurs do not have access to typical business options. Due to their Federal status, lenders and banks will not deal with them. Having a cash-only business is not necessarily bad, as long as meticulous records are kept. A business in this industry must be extra careful that there are no errors in its financial records. These firms may be well served by outsourcing their accounting and bookkeeping needs. In this way they can focus on mar...

         Every business has a level of risk involved. That might seem to be an obvious statement, but it is a fact that must be considered for every business venture. The risk is also varied when it comes to different types of businesses. When it comes to retail, the risk is high because there is so much to consider with this type of business.           Considering the wide scope of the issues that all retailers face, this post will briefly discuss changing regulations and the role that taxation plays in this area. Generally speaking, the government wants legitimate businesses and their owners to succeed. The reason is that if a business does well, then they will pay taxes and the government will do well. It’s the perfect win-win scenario. However, in practice this can become complicated. Depending on the state, certain items are subject to State Sales Tax , while others are exempt or taxed at the Alternate Rat...