1. IRS Form 8594 for Sale of Business

    Most businesses are made up of different types of assets, and those assets get different treatment for tax purposes. How those items are identified at the time of the sale/purchase can have a significant tax impact on both the buyer and the seller. A seller will, of course, want to designate items into classes that will yield a long-term capital gain on sale and thus provide the best tax result fr…Read More

  2. How Much You Can Contribute to Retirement Plans in 2015

    How much can I contribute to my IRA and 401(k) in 2015? The contribution limits for your 401(k) will be higher in 2015 than in 2014. The maximum you’ll be able to stash in a 401(k), 403(b), 457 or the federal government’s Thrift Savings Plan will increase by $500, to $18,000 in 2015. The catch-up contribution limit for anyone who turns 50 in 2015 will also increase, from $5,500 to $6,000 (for …Read More

  3. 2014 and 2015 HSA Contribution Limits

    If  you are a client of Jarus & Co you know that we are proactive CPA's who attempt to find all applicable deductions for our accounting clients. We love HSA accounts because they are effectively a loophole allowing certain taxpayers to deduct their "out of pocket" healthcare expense.  Typically these are not allowed as a deduction given few taxpayers have out of pocket healthcare expense ex…Read More

  4. Health Insurance Deduction for S Corporation Owners (2% Shareholders)

    The cost of health insurance premiums paid by a business is usually excluded from taxable income on the employee’s W-2.   However it should be noted that a 2% or more shareholder of an S corporation is not eligible for this exclusion!  However, the 2% shareholder can often deduct the cost of the premiums on his or her personal tax return (form 1040). So what is a 2% S Corp shareholder? The IRS…Read More

  5. Orange County California Manufacturing and R&D Equipment Exemption

    Overview Beginning on July 1, 2014, manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. To be eligible for this partial exemption, you must meet all three of these conditions: Be engaged in certain types of business, also known as a “qualified person.” Pu…Read More

  6. Small Business Health Care Tax Credit Helps Orange County Businesses

    Regardless of how you feel about "Obamacare" we urge you to learn more about the Small Business Health Care Tax Credit if it can reduce your cost to provide coverage to the employees of your Orange County Business. Jarus & Co has been tracking the progress of healthcare reform in order to assist clients with taking full advantage of all available deductions. Small businesses with fewer than 50…Read More

  7. Automobile Deductions for LLC’s and S Corps

    Deciding whether or not to have your LLC or S-Corp own a vehicle is a common question. There are several ways to handle automobile deductions and we'll first look at the option of the business owning the vehicle. Company Owned Vehicle If the company truly owns the vehicle, then it must be titled to the company. Generally having your name AND the company's name is OK. This might be a challenge with…Read More

  8. What You Need to Know About the Affordable Care Act (Obamacare)

    The Affordable Care Act (also known as Obamacare) was passed in 2010. It overhauls the U.S. healthcare system and will be implemented in phases until 2018. This represents the most significant change to our healthcare laws since the passage of Medicaid and Medicare in 1965. The Act utilizes the tax code and tax return in many respects to implement its measures. January 1, 2014 marks the first majo…Read More

  9. California Apportionment Changes 2013

    Per the CA FTB Website: Single Sales Factor Election to Taxpayers Meeting Special Apportionment For taxable years beginning on or after January 1, 2011, and before January 1, 2013, apportioning taxpayers are allowed to elect to apportion their income using the single sales factor. Proposition 39 now requires the use of the Single Sales Factor method of apportioning income to be used for tax years …Read More

  10. What You Need to Know About ASC 740: Accounting for Uncertainty in Income Taxes (formerly FIN 48)

    ASC 740 (formerly known as FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes or “FIN 48”) establishes a “more-likely-than-not” threshold for the reporting of uncertain tax positions on financial statements.  This standard requires new disclosures in annual financial statements, including a reconciliation of total unrecognized tax benefits, classification of income tax…Read More