Articles

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Three Ways to Get Tax Breaks for Home Improvements

Are you planning to make substantial renovations to your home? You may be adding a deck or patio, finishing a basement or attic or installing a pool. Despite some changes in the Tax Cuts and Jobs Act (TCJA) that may discourage homeowners, you can still realize generous tax benefits for home improvements. Here are three…

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Delinquent Taxpayers May Experience Passport Issues

Let’s say a person is planning to take a plane trip out of the country. And further suppose that individual owes the federal government a fair amount of back taxes. The person may not be able get a passport if he or she owes the government a significant amount of back taxes. The IRS is…

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Important Tax Figures for 2019

The following table provides some important federal tax information for 2019, as compared with 2018. Many of the dollar amounts are unchanged and some changed only slightly due to inflation.

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Keys to Successful Private Equity Real Estate Partnerships

Today’s real estate market holds win-win opportunities for both private equity and closely held property owners. As with any business arrangement, however, successful partnering requires that both types of entities understand the nuances of their agreement up front. Here’s what to keep in mind to ensure a mutually profitable outcome.

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IRS Employer News: 2019 Calendars Released and Deadline Extended

The IRS Has Released the New IRS Publication 509, “Tax Calendars for Use in 2019” The publication includes an “Employer’s Tax Calendar” with deadlines for federal income tax withholding, Social Security and Medicare taxes (FICA taxes), and federal unemployment (FUTA) tax. The calendar lists due dates for filing returns and for making deposits of the…

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Low-Hanging Fruit for Year-End Tax Planning

With two weeks to go until the New Year, now is the time for businesses and individuals to reach for low-hanging fruit in end-of-year tax planning. While the new tax law reduced the corporate tax rate from 35 to 21 percent, many small- and mid-size businesses still benefit from pass-through entity status. The tax ramifications…

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Financing Options for Middle-Market Businesses

With slowly rising interest rates, many middle-market businesses are reevaluating their borrowing options. Before closing the deal, it’s important to fully understand the differences between traditional and alternative funding sources. Here’s a look at each. Alternative Lending While the market is still strong, many businesses are considering selling before valuations dip. For prospective buyers, nontraditional…

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IRS Ups the Ante on Retirement Contributions

Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018.

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IRS Issues Guidance Deducting Meals Bought During Entertainment

The IRS recently provided transitional guidance about the deductibility of expenses for business meals that are purchased in an entertainment context. (IRS Notice 2018-76) The Basics Businesses can deduct ordinary and necessary expenses paid or incurred during the tax year in carrying on a trade or business. Before it was amended by the Tax Cuts…

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Claiming the New Employer Tax Credit for Family and Medical Leave

The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal.…

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IRS Issues Proposed Guidance on Controversial SALT Limitation

In recent weeks, the IRS has issued a series of proposed regulations to help clarify provisions of the Tax Cuts and Jobs Act (TCJA). One of the most controversial parts of the law is the limit on individuals’ deductions for state and local taxes (SALT) that goes into effect this year. In the wake of…

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Two Big Tax Changes Will Affect Food-and-Beverage Businesses

The food-and-beverage industry knows well that customers’ tastes are dynamic and constantly changing. So is the tax realm. Recent tax law changes and a decision by the Supreme Court have added complicated twists to current tax law that will affect businesses such as restaurants, distributors, and manufacturers on two fronts: the deductions they can claim…

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What’s Next for State Tax Nexus?

The recent Wayfair decision has drastically altered the landscape for states that want to collect sales and use taxes. Prior to this landmark U.S. Supreme Court case, economic “nexus” for tax purposes was established only if the seller of goods or services exhibited a “physical presence” in the state. Under Wayfair, sales and use tax…

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How Tax Reform Affects Tax Planning for C Corporations

One of the biggest changes under the Tax Cuts and Jobs Act (TCJA) is the permanent installation of a flat 21% federal income tax rate for C corporations for tax years beginning after 2017. The new 21% rate applies equally to personal service corporations (PSCs). (Under prior law, PSCs were taxed more heavily than other…

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Evaluating Portfolio Company Compliance with New FASB Lease Rule

It’s a common challenge: The balance sheet treatment of leases makes it difficult for private equity firms and other investors to accurately compare different acquisition targets. A portfolio company with substantial financing (formerly known as capital) lease obligations might appear highly leveraged, while another that is able to structure those commitments as operating leases and…

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Private Companies Face Deadline for New Revenue Recognition Standard

A critical deadline is approaching for private companies. For annual reporting periods beginning after Dec. 15, 2018, private entities must adopt a new standard for revenue recognition issued by the Financial Accounting Standards Board (FASB). The new standard, “Revenue from Contracts with Customers,” replaces all previously existing standards and guidance in order to, among other…

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New Law, New Limit on Deductions for Business Interest Expense

The Tax Cuts and Jobs Act (TCJA) imposes a new limitation on deductions for business interest expense. This is a permanent change for tax years beginning in 2018 and beyond. Will your business be affected? Here’s what you need to know. How Have the Rules Changed? Under prior law, some corporations were subject to the…

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