On-the-Go Tax Course
2017 Updates Your Business Tax Deductions Course
Update 1 - Section 15, 105 Medical Plans
Good News!
- For a great summary of the one-eligible employee Section 105 plan, a 2017 plan document, and a reimbursement form, see the article at this link: http://bradfordtaxinstitute.com/Content/Blueprint-for-Employee-Spouse-105-HRA-Health-Reimbursement-Arrangement.aspx
- If you have less than 50 eligible employees, you should consider the new qualfied small-employer HRA (QSEHRA). To see how this works, download a QSEHRA plan document, and download a proper QSEHRA employee reimbursement form, see the article at this link: http://bradfordtaxinstitute.com/Content/New-Small-Business-HRA.aspx
Update 3 - 2017 IRS Standard Mileage Rate
The 2017 standard mileage rate for business miles driven is 53.5 cents a mile and the depreciation component inside the 53.5 cents that reduces your basis in tthe mileage rate vehicle is 25 cents per mile in 2017.
Resources
- Tax Diary System PDF for keeping your tax records
- Tax Diary System Excel Summary Sheet
- Sample Section 105 Medical Plan Word Document
2018 Updates Update 1 - Section 5, Entertainment Not Subject to the 50 Percent Cut
Under the new tax reform laws, lawmakers have eliminated business deductions for directly related and associated entertainment effective January 1, 2018. You can no longer deduct entertainment that has as its mission the generation of business income or other specific business benefit.
Here is a PDF of our January 2018 article describing the elimination of meals and entertainment.
You may continue to deduct 50 percent of some specific entertainment expenses. Our January 2018 article lists these expenses.
Employee meals that were 100 percent before, are now only 50 percent deductible beginning January 1, 2018. You can read our January 2018 article for examples of employee meals.
Update 2 - Section 6, Strategies to Capture More Entertainment Deductions
See Update 1 above
Update 3 - Section 24, Should You Use IRS Mileage Rates or Actual Expenses?
The 2018 standard mileage rate for business miles driven is 54.5 cents a mile and the depreciation component inside the 54.5 cents that reduces your basis in the mileage rate vehicle is 25 cents per mile in 2017.
The luxury auto limits have increased for 2018 as follows:
| Tax Year | Amount |
|---|---|
| 1st Tax Year | $10,000 (plus additional $8,000 bonus depreciation) |
| 2nd Tax Year | $16,000 |
| 3rd Tax Year | $9,600 |
| Each Succeeding Year | $5,760 |
Update 4 - Section 25, Avoid Taxes with Section 1031 Exchanges fo Vehicles
Beginning January 1, 2018, tax reform no longer allows Section 1031 exchanges on personal property such as your business vehicle.
Here is a PDF of our January 2018 article describing the elimination of 1031 exchanges on vehicles.
Update 5 - Section 34, Choosing the Right Business Entity Can Be Critical to Your Business Health
Under the new tax reform laws beginning January 1, 2018, you may qualify for an additional deduction under Section 199A if you operate as a flow-through entity (sole proprietorship, partnership, or S corporation).
Here is a PDF of our January 2018 article describing this new deduction.
This article helps you understand the phaseout limits of this new deduction. PDF
If you operate as a "specified service trade or business", this article explains how this deduction works for you.
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