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2022 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

January 17 (The usual deadline of January 15 is a Saturday)

Pay the final installment of 2021 estimated tax.
Farmers and fishermen: Pay estimated tax for 2021.

January 31

File 2021 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your employees.
Provide copies of 2021 Forms 1099-MISC, “Miscellaneous Income,” to recipients of income from your business where required.
File 2021 Forms 1099-MISC, reporting nonemployee compensation payments in Box 7, with the IRS.
File Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” for 2021. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it’s more than $500, you must deposit it. However, if you deposited the tax for the year in full and on time, you have until February 10 to file […]

By Linkenheimer LLP|2022-01-03T22:42:14+00:00January 3rd, 2022|business, tax deadlines|0 Comments

Providing a Company Car? Here’s How Taxes are Handled

The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) Plus, current tax law and IRS rules make the benefit even better than it was in the past.

The rules in action

Let’s say you’re the owner-employee of a corporation that’s going to provide you with a company car. You need the car to visit customers, meet with vendors and check on suppliers. You expect to drive the car 8,500 miles a year for business. You also expect to use the car for about 7,000 miles of personal driving, including commuting, running errands and weekend trips. Therefore, your usage of the vehicle will be approximately 55% for business and 45% for personal purposes. You want a nice car to reflect positively on your business, so the corporation […]

By Linkenheimer LLP|2021-12-14T17:45:30+00:00December 14th, 2021|business, individuals|0 Comments

The Tax Implications of Owning a Corporate Aircraft

If your business is successful and you do a lot of business travel, you may have considered buying a corporate aircraft. Of course, there are tax and non-tax implications for aircraft ownership. Let’s look at the basic tax rules.

Business travel only

In most cases, if your company buys a plane used only for business, the company can deduct its entire cost in the year that it’s placed into service. The cases in which the aircraft is ineligible for this immediate write-off are:

The few instances in which neither the 100% bonus depreciation rules nor the Section 179 small business expensing rules apply or
When the taxpayer has elected out of 100% bonus depreciation and hasn’t made the election to apply Sec. 179 expensing.

In those cases, the depreciation schedule is 20% of the cost for year 1, 32% for year 2, 19.2% for year 3, 11.52% for year 4, 11.52% for year 5 and 5.76% for year 6. Note that the bonus depreciation rate is scheduled to be phased down for property placed in service after 2022.

Interestingly, these “cost recovery” rules are more favorable than the rules for business autos. The business auto rules […]

By Linkenheimer LLP|2021-12-14T17:02:28+00:00December 14th, 2021|business, tax planning, travel|0 Comments

Small Businesses: There Still May Be Time To Cut Your 2021 Taxes

Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies.

Purchase assets

Thinking about buying new or used equipment, machinery or office equipment in the new year? Buy them and place them in service by December 31, and you can deduct 100% of the cost as bonus depreciation. Contact us for details on the 100% bonus depreciation break and exactly what types of assets qualify.

Bonus depreciation is also available for certain building improvements. Before the 2017 Tax Cuts and Jobs Act (TCJA), bonus depreciation was available for two types of real property: land improvements other than buildings (for example fencing and parking lots), and “qualified improvement property,” a broad category of internal improvements made to nonresidential buildings after the buildings are placed in service. The TCJA inadvertently eliminated bonus depreciation for qualified improvement property. However, the 2020 CARES Act made a retroactive technical correction to the […]

By Linkenheimer LLP|2021-12-07T19:10:08+00:00December 7th, 2021|business, deductions, small business, tax deductions, vehicles|0 Comments

California Tax Updates for 11/17

Update 1:

The rules for property tax appeals in California have changed. Effective June 21, 2021, four rules for tax appeals in CA changed, involving: petitions for redetermination; innocent spouse relief; rules for rescheduling or postponing appeals; and filing documents. These rules are classified as Rule 100 changes, which means they have no regulatory effect. The rule changes were made because the CA State Board of Equalization’s Board Proceedings Division has physically moved to a new location. The mailing address hasn’t changed. The appropriate email address for appeals-related communication is appealsscheduling@boe.ca.gov or fax to: (916) 324-3984. Here’s more: https://bit.ly/3kp5PHj

Update 2:

The passage of California Assembly Bill 150 in July 2021 brought many changes effective for taxable years beginning in 2021 (but before 2026). One is the Small Business Relief Act, which allows qualified pass-through entities (PTEs) to annually pay an elective tax of 9.3% of the pro rata […]

By Linkenheimer LLP|2021-11-17T16:56:24+00:00November 17th, 2021|business, property tax|0 Comments