A couple of years ago, I was a guest blogger on hiscox.com and wrote this article. The subject matter is still relevant – check it out.
The first tax season after the passage of the Tax Cuts and Jobs Act was full of surprises. When the IRS published its weekly filing statistics during the last week of tax season , the numbers confirmed what many taxpayers were shocked to see when they finished their returns: namely, that tax refunds were both smaller and a bit harder to come by. The number of refunds decreased by 1.9%, while their size decreased by 1.3% (or about $36–this is a correction from the $55 reported on the show). In this episode we talk about what happened and why, our national love affair with tax refunds, corporate tax avoidance, and why the IRS isn’t pursuing as many investigations despite new data that reveals that more people are cheating on their taxes.
A show outline and links can be found below the cut.
On December 22, 2018, the US government entered what was to become the longest shutdown in the country’s history, when the President refused to sign off on a Congressional budget that didn’t include a requested $5 billion in funding for a border wall. The government temporarily reopened 35 days later, but not before damaging the economy and pushing many federal employees and people who rely on government funding social programs to the edge of their own fiscal cliffs.
How and why do shutdowns happen? What, if anything, did we learn from this experience? What can we do to prepare if the temporary funding lapses on February 15th without a budget in place? In this episode: “savings crises,” conference committees, grocery store negotiations, and only slightly less ire about borders than in our economics of immigration episode.
Speaking of which, if you’ve missed any of our previous episodes, you can find them on Apple Podcasts , Google Play, Stitcher., or on our website. Questions? Comments? You can email us at [email protected] or find us @financeflipside on Twitter, Facebook, or Instagram.
As always, relevant links are located under the cut.
[Read more…] about The Financial Flipside Podcast, Episode 17: Shut ‘Em Down
Father & son unite to expand their top-notch east coast accounting practice
DURHAM, N.C. – Feb. 2, 2019 — James Heyward, Principal: of Heyward CPA PLLC is proud to announce a merger with A OH Business Services, NYC, effective January 2019. Heyward CPA PLLC, is a prestigious Durham, North Carolina based firm that provides tax, accounting, and advisory services to businesses and their owners. A-OH Business Services was established in Queens, New York, by Oscar Heyward in 1982 and provides similar services to individuals, businesses, and tax-exempt organizations, with a specialization in pre-k & afterschool, child care centers.
The decision to merge was based on the belief that a more expansive and comprehensive operation will allow the company to provide a wider array of services, faster turnaround time and better client experience. The merger is designed to facilitate a wide range of new financial services in areas of accounting expertise in the future. The firm has attracted high-quality, committed professionals, invested in tools and resources to streamline their processes in order to become more efficient and provide a better client experience. With an exceptional track record in the accounting industry, the father and son teamed up to expand their wealth of experience, skills, and talent, throughout the east coast.
At an early age, emulating his father’s, acumen and professionalism, James developed his knowledge of and love for financial management, while working for his dad’s practice. The lessons he learned while working with his father, coupled with his love for financial management, led to other successful business ventures; ultimately leading him to establish the recent merger of “HEYWARD CPA, PLLC & A-OH Business Services.”
James E Heyward will remain Principal owner, while Oscar Heyward will operate an Executive Associate.
Heyward CPA PLLC is a Durham, North Carolina based firm on a mission to increase the success of small and mid-size companies, with a specialty in minority-owned firms, as a means of strengthening the economy and developing wealth.
As the year draws to a close, a lot of us carving out time between holiday parties and wrapping up projects to make a few New Year’s resolutions. After writing or typing out our lists, we roar into the new year with the best of intentions, armed with gym memberships, apps, and new gadgets. Yet, by the end of 2019, more than 90% of us will have abandoned our resolutio until December, when the whole cycle starts again. In this habit-forming episode, we talk about goal setting: why we succeed, why we fail, and some strategies for making your 2019 resolutions ones we’ll keep. Because we’re a money and finance podcast, and because financial resolutions are incredibly common (one poll taken at the beginning of the year found that saving money was tied with diet and exercise changes for the most popular resolution), we also discuss some things to do to get your finances ready for 2019.
Not subscribed yet? You can do so on Apple Podcasts, Google Play, and Stitcher. Our previous episodes can be found here. If you want to talk to us about habits, resolutions, or your financial goals for 2019. we’re @financialflipside on Facebook, Twitter, and Instagram.
Mentioned on the show:
Business owners aren’t in business to lose money. So there’s not much to like about a nonprofitable year. For a shareholder in an S corporation, however, a down year can have an upside — the corporate loss may give rise to a personal tax deduction.
Standing between an S shareholder and the loss deduction is a tricky tax computation known as “adjusted basis.” Under the tax law, a shareholder’s loss deduction is limited to the shareholder’s adjusted basis in his/her corporate stock and in any debt the company owes the shareholder.
What is adjusted basis, anyway? Essentially, it’s a figure that tracks the shareholder’s investment in the company for tax purposes. The basis number changes every year to account for any money flowing between the company and the shareholder — distributions, capital contributions, loans, and loan repayments — as well as for the shareholder’s allocated share of corporate income or loss.
If a net operating loss is anticipated for the year, S shareholders should find out whether they will have enough basis to benefit from the projected loss deduction. If not, it may be possible to increase basis by making a contribution to capital or by loaning the company money before year-end. When you give us a call today, our tax professionals can offer guidance so that the transaction will pass IRS muster.