Schmidt Blog

Write off Inventory? You Bet For Many Small Business Taxpayers

December 7th, 2018

Beginning in 2018 several small businesses may be able to write off their inventory for tax purposes.  Under old rules, the use of inventories was necessary to clearly determine the income of the taxpayer.  Effective for tax years beginning after 2017, a taxpayer with average gross receipts of $25 million or less is not required
Read More

Does Your Business Qualify for the new 20% Business Income Deduction? New Regs Provide Some Guidance but Calculations Still Complicated

December 6th, 2018

The new tax law lowered the corporate tax rate to a flat 21% starting in 2018.  This corporate rate reduction helped out large companies, but most small businesses are organized as pass through entities where the income from the business passes on to the owners such as S corporations, LLCs, partnerships and sole proprietorships.  To
Read More

Colorado Sales Tax Compliance

November 26th, 2018

Sales tax compliance has always been a challenge for CO businesses.  To make matters worse, effective Dec. 1, 2018, the Colorado Department of Revenue will adopt new sales tax rules. The new rules state that sales tax must be collected and remitted based on the jurisdiction’s tax rate at the point of delivery for the
Read More

Update on Meals and Entertainment Deduction Under New Law

July 19th, 2018

Under the new tax law there are major changes to one of the more common business expenses—outlays for meals and entertainment. Many, but not all, entertainment expenses are no longer deductible after 2017.  For example, costs related to entertainment activities including membership dues, sports tickets and social clubs are no longer deductible.  However, a number
Read More