Avoiding or Reducing the 3.8% Net Investment Income Tax

The Health Care Act of 2010 affected your business in more ways than just health care.  Included in that Act was a pesky provision known as the Net Investment Income Tax (NIIT) which imposed a 3.8% surtax on certain investment income.  This affects those with modified adjusted gross income above $200,000 for a single or head of household taxpayer, $125,000 for married filing separate taxpayer, or $250,000 for those filing as joint or surviving spouse taxpayers.
The 3.8% Net Investment Income Tax is imposed on the lesser of:

Website Design Costs for Your Store

In today’s competitive grocer industry, having a well designed website can mean the difference between subpar or superior sales.  Therefore, website development is one of the most important investments you can make, and knowing how to properly account for the expense is very important.
Surprisingly, the IRS has not issued formal guidelines on the deductibility of website costs.  They have however, issued guidance related to business expenses in general and the treatment of software costs.

Internet Based Grocery Sales

Have you thought about increasing your store’s internet presence?  Approximately one-third of grocery shoppers have tried online shopping at least once.  Online sales are growing five or six times faster than conventional sales, and is one of the largest sources of growth for grocers according to “Capturing the Online Grocery Opportunity” a study by A.T. Kearney, a global management consulting firm.

Making Loans to Your S-Corporation Entity

You may decide, for a variety of reasons, to advance funds using debt rather than make an equity infusion to operate your business. Using debt may provide certain tax benefits as long as the debt is respected by the IRS as “bonafide”.
So what constitutes “bonafide debt” under existing tax law?

What Are My Options if I Can’t Fully Pay My Income Taxes When Due?

Depending on your situation, you may find that your tax liability is greater than your cash on-hand.  If this happens, you may ask:  “What are my options?”  Fortunately, you do have options.  Following are some of the options we will explore that may be available to you:


Subscribe to BGBC Partners RSS