GREAT IDEAS FOR ENTREPRENEURS FROM THE THOUGHT LEADERS AT CASEY NEILON
The new tax law was recently passed to great fanfare. It has been billed as the biggest tax break Americans have seen in decades. While this may be true, especially for people with ownership interests in one or more businesses, discovering how to realize these tax breaks is a whole new ballgame.
In December 2017, Congress passed the most significant tax reform bill in thirty years. Some of the provisions were designed to simplify tax reporting, but some of the provisions have made tax reporting significantly more complicated. One of the more complex areas is the new deduction for “qualified business income” – often referred to as QBI. This new provision should provide a substantial tax benefit to individuals with qualified business income from a partnership, S corporation, LLC, or sole proprietorship. But it may not be as straight-forward as it seems at first glance.
Congress has passed the biggest tax reform bill in thirty years. These new tax laws will make fundamental changes in the way you, your family and your business calculate your federal income tax bill. They will also likely change the amount of federal tax you will pay.
Most entrepreneurs I work with are busy people who are confronted with more decisions than they have time or the desire to research. The implications of making the wrong decision or of not fully executing on the right decision can be severe.
Investors who play the markets are often torn between fear and greed. When stocks go up, they buy, sometimes taking on more risk than is wise. When stocks go down, they sell, usually out of concern for losing it all. Typically these investors follow trends because they fear they are missing out on opportunities. Fear and greed. These two shape the mindset and behavior of a certain type of investor.
My uncle is a successful construction industry entrepreneur who today owns 5 businesses. Nothing in his early life suggested that he would accomplish so much. He came from a challenging childhood environment; his family was not wealthy; he did not grow up in a family business; and he did not complete high school.
When most people think of CPAs, they probably picture a technician who is very good with numbers. CPAs are often thought of as being left-brained dominant. They are analytical, good with numbers and “just-the-hard-facts” kind of people. Right-brained people are thought of as creative. They are good at language, art, abstract ideas – you know – the softer mushier stuff of life.
I’d like to address a common concern I hear when talking to people about CPAs. While they like their CPA and believe they’re competent, they wish their CPA was more proactive. Usually what they mean is that they want a CPA who is looking out for them and their business interests. They either feel that not enough time was spent getting to know their issues or that an issue came up during a conversation or meeting that should have been addressed long ago.