Relevant information on changes to the 2014 tax code

As an accounting business who serves other small businesses, we think updating our clients on changes to the tax code is a part of our business. So if you’ve just dropped in, why don’t you take a moment to see what condition the US tax condition is in. Relevant? Relevant.

We mentioned in a recent post that small businesses can expect a reduction in the number of lines necessary to make the home office deduction. Well, there were 5 changes. Here are the top 3 according to us:

1.) The online sales tax. This has been in the news lately, and if you’re an online retailer in some capacity, you’re probably aware of it.  While in the past many companies got away with not charging their customers an online sales tax “by creating separate legal subsidiaries to handle Internet business,” it appears that practice is no longer a viable strategy. Read here for more information.

2.) Income tax. “The tax rate for the top federal wage went from 35 percent to 39.6 percent.” This will affect you directly if you make more than $400,000 in taxable income as an individual or if you married with a joint income of $450,000, but any changes to the tax code are usually felt in a ripple.

3.) The tax on long-term capital gains will rise from 15% to 20%. So if you have investments prepare to pay a little more.

[Source:] http://www.businessnewsdaily.com/5871-small-business-tax-filing-changes.html

Give us a call at 425-483-6600 to handle your tax returns for you!

 

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Seattle CPAAbout Seattle CPA
Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.