September 2018 Tax Updates at a Glance

Wait, it’s already the end of September? Wow. If your month was as busy as ours, you’ll agree that it feels like September just flew by. As a business owner, it can be difficult to keep track of the news and events that will affect your business. At MBS Accountancy, we understand the hectic schedule of business owners and, as your allies for business success, are committed to providing you with timely and relevant information for your business’ continued success in taxes and finances. In this last week of September, we decided to review the earlier posts from this month and also summarize relevant updates from the California Franchise Tax Board and the IRS.

MBS Accountancy: September Review

Sep 6 – Streamline Your Business By Trimming Costs & Saving Money
Improving your business’ efficiency and increasing your bottom line are alway going to be top concerns for you as a business owner. In this post, we explored common areas in which you as a business owner can save money (and time) through outsourcing or automation.

Sep 12 – Filing Late? Here’s 5 Helpful Tips
Due to either paperwork delays and corrections or business stress, many business owners are filing late this year. In this second post for September, we offered free tools from the IRS to help you stay on top of your taxes whether you are filing late or are awaiting a refund.

Sep 19 – Contractor or Employee? How The Dynamex Ruling Affects You
Last week, our post provided some insight into the employee vs. contractor discussion in light of Dynamex Operations West, Inc. v. Superior Court of Los Angeles. Specifically, we discussed the applicability of the ABC Test and how it can help you avoid mislabeling your workers.

California Franchise Tax Board – September’s Highlights

New Employment Credit

Also featured in this month’s highlights were like-kind exchanges, which basically allow businesses or real estate investors to sell assets and acquire similar assets without incurring a tax liability from the original asset’s sale. This month, the Tax Board focused clarified the relationship between the federal tax overhaul (2017 Tax Cuts & Job Act) and existing California law regarding like-kind exchanges. While you can read their summary here, the Board states that California law that – while being subject to the federal rules in IRC 1031 – they do not conform with the new limit on like-exchanges being limited to real property that is not held for sale.

New Employment Credit

This New Employment Credit is available for employers from January 1, 2014 until January 1, 2026. Also known as the NEC, this credit was recently extended in Senate Bill 855 and applies to employers within designated geographic areas who hire eligible employees from within that area.

September Updates From The IRS

Sep 5 – As a business owner, if you make payments to charities or government entities for which you’ll receive a tax credit, you can usually deduct those payments as business expenses.

Sep 21 – Employers who paid for an employee’s moving expenses (whether directly or through a moving company) does not include those moving expenses in their employment taxes. Visit the IRS website for more information.

Sep 24 – Employers who provided paid family and medical leave to their employees may have eligibility for a tax credit for the 2018 and 2019 tax years. If you set up a paid family leave program or fix an existing program by December 31, 2018, you may be able to claim a credit for whatever amount of qualifying leave was provided to the employee(s).

Got a Question? Contact Us

MBS Accountancy is here to help you and other business owners successfully navigate the current issues regarding taxes or finances. Our consultants and accountants are knowledgeable and use their experience and skills to help you and other businesses succeed in today’s world. Contact us today and learn how we can help your business succeed!

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