Leverage CCH Axcess iQ for efficiency and profitability
Have you reached out to your clients to get planning started for the upcoming tax season? There are a lot of issues to review when planning for tax season; so how can anyone keep up? Below are a couple of tax planning activities to take into consideration. CCH Axcess iQ can help you identify these and other situations that will affect your clients’ tax planning for the upcoming tax season.
Hiring Family Members
If you have a family business and are including family members within business operations, employment tax rules apply. For example, children under the age of 18 are not subject to Social Security and Medicare taxes on their wages if the business is a sole proprietorship or a partnership in which each partner(s) is a parent of the child.
Businesses jointly owned by a married couple are generally considered partnerships for Federal tax purposes. However, couples may elect not to be treated as a partnership. Under this election, they each file a Schedule C as sole proprietors and avoid the costs of filing a partnership return. In addition, both spouses will receive credit for social security and Medicare coverage purposes.
Tax Planning: Spouses carrying on a trade or business venture
When both spouses carry on a trade or business venture and share the profits and losses, they may be partners whether they have a formal partnership agreement. Filing requirements for a sole proprietor vs. a joint venture as a partnership have different filing requirements. Did you know, spouses can elect not to treat the joint venture as a partnership?
Additionally, special rules exist for children who are employed by their parents.
The wages for the services of an individual who works for their spouse, or parent employed by a child, are subject to income tax withholding and Social Security and Medicare taxes, but not the Federal Unemployment Tax Act (FUTA).
Tax Planning: Alternative Minimum Tax for Individuals
Careful planning is the best way to handle AMT liability.
An overall plan must be created by firms to manage AMT liability with accuracy.
Alternative Minimum Tax recalculates an individual’s tax liability. Alternative tax is compared to the taxpayer’s regular tax and the higher of the two amounts should be reported as the tax due on the individual’s return. In fact, up to 28 percent may be imposed on tax preference and adjustment items.
Planning Opportunities generate revenue
Securing clients’ exposure to (AMT) alternative minimum tax starts with being well-informed. CCH Axcess iQ helps firms create opportunities for discussion and engagement.
Now that you know about these planning opportunities, how can you use them to bring in new revenue?
While firms create plans to manage AMT, let CCH Axcess iQ do the rest and help guide conversations to maximize the value of your tax planning efforts! CCH Axcess iQ helps firms identify tax planning activities as well as providing meaningful client letters to send to impacted clients. Contact a Solutions Consultant or register for a demonstration today.