Tag Archive: "Tax Planning"
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Transportation Profit Down, Tax Liability Up?
We keep hearing the economy is down, worries of a recession, high inflation, etc. This post isn’t about that. Challenges face the transportation industry after many companies had successive great years. You might be reviewing your financials this year and see a smaller number on the bottom line. Now that we are nearing the end […]
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Travel Far with the Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is an underutilized resource within the transportation industry. It allows employers to reduce their federal tax liability by up to $9,600 per eligible employee when they hire people from targeted categories and employ them for at least 120 hours in their first year of employment.
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New Retirement Rule Changes
At the end of December, President Biden signed a $1.7 trillion spending bill into law. Included in the bill were some significant changes to the retirement system in the US that are known as the SECURE 2.0 Act of 2022. Here are a few of the biggest changes included in the bill: Our colleague Steve […]
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Simple Tax Planning Tips
Sometimes there’s a mystique around tax planning. People think there is some hidden magic. A strategy they don’t know about and way they can have their cake (income) and eat it too (low/no tax). The tax code is long and complicated to avoid things such as that. When it comes to tax planning you have […]
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The Missing Pieces from the Omnibus Bill
Congress passed a $1.7 trillion dollar spending bill at the tail end of last week. In likely the last major piece of legislation Congress will pass before Republicans take control in the new year, many initiatives were included as lawmakers pushed to avert a government shut down and get home for the holidays before winter […]
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The Year of Early Planning
Proposed tax legislation may not be moving quickly, but that doesn’t mean there isn’t significant changes that warrant early planning for 2022.
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Consider Your Leverage
For asset-based carriers trucking is usually a high leverage business. It involves constant equipment trade cycles that often requires financing to be able to afford the costs or protect cash reserves. With inflation and technological improvements, we have seen equipment costs rise and expect that trend to continue. Why do I mention this? Because interest […]
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Further Guidance on Per Diem Deductibility
Back in November we posted about guidance under IRS Notice 2021-63 allowing for the temporary 100% deduction for the meals portion of the special per diem rate for motor carriers with drivers who are subject to the hours of service rules. Sometimes, guidance can create more confusion and questions than clarity. Under Notice 2021-63 it […]
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Schedules K-2 and K-3 — What Transportation Companies Need to Know
The IRS has released final versions of two new international-related tax filing schedules that are being added to passthrough entity returns (including Forms 1065, 8865, and 1120-S). Many people may, at first glance, may be lead to believe that K-2 and K-2 reporting matters are primarily a global tax issue; however, nearly every pass-through entity […]
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A Big Break for Per Diems?
There has been a significant amount of relief passed through various bills due to the coronavirus. While the employee retention credit, paid leave credit and paycheck protection program received a lot of the glory, something smaller yet potentially impactful passed with the Consolidated Appropriations Act, 2021 (CAA 2021). The CAA 2021 includes a provision that […]