Grocers’ Charitable Contributions

Grocers are acutely aware of the extremely important role they play in the communities they serve.  Many grocers desire to play an even greater role through philanthropic and charitable donations.  These donations not only help build stronger communities, but the grocers also benefit through enhanced community goodwill.  Another benefit the grocers may receive is in the form of tax deductions.

Kiddie Tax

As a business owner, you are constantly on the look-out for strategies to reduce your income tax.  While it may seem logical to shift your income into your children’s names to be taxed at a lower tax rate, many times this produces minimal or no tax savings due to the “Kiddie Tax.”  The Kiddie Tax requires that a child’s unearned income over a certain threshold be taxed at the parents’ tax rate.  Congress first enacted this tax provision as part of the Tax Reform Act of 1986 in order to deter taxpayers from shifting income into their children’s lower tax brackets.
 

Book Requirements for Worthless Debt Deductions

In a perfect world, your business would extend credit to customers and they would promptly repay it along with their continued loyalty to your products.  Unfortunately, in the real world customers sometimes default on their promise to pay.  The tax code (“Code”) has provisions which seek to soften somewhat this situation by allowing a tax deduction known as a “worthless debt”. When can the business take a deduction for worthless debt amounts?  This article will explain the requirements that must be met in order to deduct worthless debt.
 

Types of Retirement Plans

With all the daily hustle and bustle involved with running your business, it’s easy to overlook one crucial item – saving for your retirement! Since there is a wide array of tax-advantaged retirement options available, in this edition of our Tax Update we have summarized some of the major tax benefits of the major plans.  These benefits generally include: For the employer, a current deduction for contributions made to the plan; and, for the employee, the tax-free accumulation of investment income.

Candidates’ Tax Plans: What’s the Difference? Part II

In Part I, we discussed the meanings behind some of the terms the candidates are using.  In this second installment, we have summarized the major tax policy initiatives of the candidates.
 
Chris Christie
 

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