Blog Archives: 2018

Protecting Your Data Against Cyber Criminals

8/9/2021: This article has been updated since its original publishing date to reflect the 2021 Protiviti report. 

The saying goes that “cash is king,” and when it comes to risk management and fraud, it often is. A fundamental risk management technique is to prioritize the protection of assets that either are cash or can easily be converted to cash. As a result, inventory or equipment with “street value” are frequent targets for theft because they have a readily available market. And, while many of the things found on a balance sheet do need to be safeguarded, some of the company’s most valuable assets won’t show up on the balance sheet.

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Washington B&O Tax Alert – Annual B&O Tax Apportionment Reconciliation Due October 31st

For business and occupation (“B&O”) tax purposes, taxpayers earning apportionable revenue calculate their taxable Washington revenue by applying a “receipts factor” apportionment methodology. Taxpayers computing B&O tax in this manner are required to complete and file an Annual Reconciliation of Apportionable Income form with the Department of Revenue.

When is the Annual Reconciliation of Apportionable Income Form Due?

The form must be submitted to the Department of Revenue by October 31st of each year. Failure to timely file the reconciliation form may result in penalties.

Who Must File?

In-state taxpayers that earn income from apportionable business activities performed for customers located inside and outside of Washington may apportion such revenue to Washington for B&O tax purposes.

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New 20% Qualified Business Income (QBI) Deduction for Pass-through Entities

The Tax Cuts and Jobs Act (TCJA) added a new tax deduction for owners of pass-through entities – a 20% deduction of qualified business income (QBI) from a qualified trade or business.

This new provision may potentially lower the maximum individual tax rate of 37% on pass-through income to 29.8%, which makes it more comparable to the new C corporation tax rate of 21%.  However, the new law contains limitations that may reduce or eliminate the deduction for some business owners.

What Is the 20% QBI Deduction?

For tax years beginning after December 31, 2017 through 2025, the QBI deduction is 20% of QBI from an S corporation,

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What’s the Best Type of Entity for Your Business Under Tax Reform?

The Tax Cuts and Jobs Act (TCJA) was intended to reform the tax code by lowering tax rates and changing income and deductions for all businesses.  Two of the most significant changes are the reduction of the C corporate tax rate to 21% and the addition of the 20% qualified business income deduction for pass-through entities (S corporations, partnerships or sole proprietorships).

Many businesses are questioning – what’s the right type of entity for my business for tax purposes?

Key Questions

The path to choosing the right entity starts with considering the following important questions:

  • What are the plans and objectives for the company and its owners?

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Will the New Business Interest Expense Limit Affect Your Business?

The Tax Cuts and Jobs Act (TCJA) has significantly lowered tax rates for businesses and changed many deductions.  One of the biggest and most important changes is the deductibility of business interest expense, which is creating complexity and confusion.  This provision is expected to raise $250 billion in taxes over the next ten years.

In the past, business interest expense has been generally deductible, but with some limitations.

For tax years beginning after December 31, 2017 and before January 1, 2022, deductible business interest expense is limited to:

  • 30% of adjusted taxable income before depreciation, amortization and depletion
  • plus business interest income and floor plan financing interest

Starting in 2022,

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