The Thanksgiving leftovers are dwindling, the air is getting colder and the holiday season is now officially in full force. That also means that the tax year is quickly coming to an end.
Let’s take a quick look back at this November to review newsworthy events in the accounting industry over the past month. The more you can stay informed, the better able you’ll be to serve your clients and keep yourself in the loop on what’s happening within the industry to avoid getting left in the dust.
MBS Accountancy: November Review
First off, let’s look back at some of the news that MBS Accountancy brought to you over the course of November, including some highlights about the new TCJA and our monthly client spotlight.
4 Ways Quickbooks Can Help Your Business Thrive
We looked at how Quickbooks can be an invaluable tool for businesses everywhere. It not only helps track expenses and other parameters in an easy-to-use, powerful way, but also helps ensure tax compliance and transparency through clear tracking and extensive records.
Client Spotlight: Sky Hotels, Inc.
We highlighted one of our wonderful clients, Sky Hotels, a trusted name in the hospitality industry that partners with investors and contractors to ensure maximum profitability and straightforward asset management. We discussed how we’ve seamlessly collaborated with the accounting staff and ownership at Sky Hotels to great success with shared platforms to foster better communication within the company and between partners.
How the TCJA Affects Tax Accounting Methods
The Tax Cuts and Jobs Act 0f 2017 has been Trump’s signature tax reform thus far in his administration. It’s had far-reaching effects on businesses, including a new 20% qualified business income deduction and a corporate tax rate lowered from 35% to 21%, plus changes to how global profits for US-based companies are taxed.
California Tax Board: November Highlights
Next up, let’s see what newsworthy updates the California Tax Board provided for accountancy firms and businesses across the state in November.
Dissolution & Cancellation of Domestic Corporations and LLCs
Starting on the January 1st, 2019, some domestic corporations and LLCs that are no longer active and hold no assets will have the ability to take advantage of administrative dissolution or cancellation by the CTB.
Modifications to State Leadership Accountability Act
All identified inadequacies and weaknesses in state agencies must now be included in biennial reports to the Franchise Tax Board. This is part of new legislation that will modify the existing SLAA, or State Leadership Accountability Act.
New Online Resource for Gig Economy Taxpayers
Also known as the peer-to-peer sharing economy, the gig economy has reached massive new levels in 2018 and is not expected to slow down. The California Tax Board just launched a new webpage designed to provide those who engage in the gig economy with helpful resources that can help them stay compliant in this burgeoning industry.
November Updates from the IRS
Finally, a quick review of November updates from the IRS—including new regulations, filing deadline reminders, and information about how tax practices are changing with the ever-changing laws and regulations that affect both individuals and businesses.
New Proposed Regulations for Business Expense Deduction Limits
The IRS introduced new regulations this month as an amendment to the Tax Cuts and Jobs Act that would limit how much business interest expenses certain taxpayers will be able to deduct.
Reminder of Jan. 31 Filing Deadline for Wage Statements and Independent Contractor Forms
The IRS also released an official reminder that employers and other businesses must file wage statements and independent contractor forms by Jan. 31st to avoid penalties and non-compliance.
Number of Taxpayers Who Itemize Deductions Likely to Drop
With the TCJA doubling the size of the standard taxpayer deduction, the IRS cautioned that the number of filers who chose to itemize deductions would likely experience a significant drop as more opt for the standard deduction.
New Tax Law Expands Bonus Depreciation and Allows for More Expenses
Eligible businesses can now expense more of their costs and account for bonus depreciation when filing, according to a November IRS announcement that’s likely to please many business owners.
Trust the Experts to Keep You In-the-Know
MBS Accountancy is one of the industry’s most trusted leaders in providing modern financial and tax guidance. Our tax experts and accountants will keep you constantly informed on the most current changes to tax law and financial best practices to make your business more profitable, less stressful, and better than ever.