At least it’s the question for many baby boomers who are at or near normal retirement age. Millions of baby boomer business owners are facing this question. COVID-19 has exacerbated making this decision, with Pew Research Center finding that the pace of retirement has accelerated. Should you retire? Can you retire? Will you retire? Financial considerations How are your finances? Many baby boomer business owners may be able to afford a comfortable retirement. They have spent a lifetime building resources: The business. It can be sold to generate a large amount of revenue. To get a rough idea of what […]

Okay, so I’ve been in business since dinosaurs roamed the earth. I may not be as tech savvy as millennials, but I’ve kept up with necessary changes. In addition to learning about computers, the internet, and social media, I’ve also picked up some valuable business lessons along the way. I’m sharing five of them with you. 1. Do the best you can in the time you have The time you have to complete your business tasks is limited. You can prioritize, find ways to optimize tasks, and become very efficient. Nonetheless, there are still only so many hours you can […]

On his first day in office, President Biden issued an executive order freezing for 60 days various federal proposed regulations as well as those finalized but not yet in effect. The purpose of the freeze is to allow the new administration time to review, and perhaps, change the rules. Some of these freezes impact small businesses. Here are some to consider…and what to do about them. Independent contractor definition The U.S. Department of Labor (DOL) had finalized a rule defining independent contractor for purposes of the Fair Labor Standards Act, which affects minimum wage and overtime rules for employees. The […]

“To win in the marketplace you must first win in the workplace.” Doug Conant, former President and CEO of the Campbell Soup Company Your staff is your most valuable company asset, so finding and keeping valued employees on the payroll is essential. Federal tax breaks help you to do this. Recent law changes make them even better that before. During the economic recovery, businesses must use all available means to achieve their goals. Here are some tax incentives to check out now for improving your staff. Work Opportunity Tax Credit The work opportunity tax credit is a federal tax credit […]

With the stress of the pandemic and the problems they created for many small business owners, unfortunately failure is now too common a fact of life. But when I think about failure, I simultaneously think about success. Perhaps it’s because I put a face to the words and that face is of Abraham Lincoln. He was born on February 12, 1809, and his birthday used to be a separate holiday. Around the day of his birthday is still good time to reflect on what his words and actions have to teach us today about experiencing failure and striving for success. […]

A new administration and new Congress are promising serious climate change legislation soon (the “Green New Deal”). In his inauguration speech, the new President plans a $2 trillion investment in clean energy, with the goal of not producing any carbon emissions by 2035. It’s a good idea for your business to review its current practices so you can be prepared to comply with new requirements likely to be acted soon, and even better, get ahead of the curve. What to expect from green legislation You’ve probably heard of a “carbon tax.” The Carbon Tax Center says it’s a government-imposed fee […]

 by Barbara Weltman The COVID-19 pandemic triggered numerous changes in tax law as reflected in the book. But tax law is not static and new legislation, IRS pronouncements, and court decisions continue to tweak tax rules. They affect reporting on 2020 returns as well as tax planning for 2021 and beyond. The Consolidated Appropriations Act, 2021 (CAA), which runs 5,593 pages and was signed into law on December 27, 2020, made a number of changes impacting individuals. Some are reflected on 2020 returns; others do not take effect until 2021 and, thus, affect tax planning and estimated taxes for […]

by Barbara Weltman The pandemic triggered numerous changes in tax law as reflected in the book. But tax law is not static and new legislation, IRS pronouncements, and court decisions continue to tweak tax rules. They impact reporting on 2020 returns as well as tax planning for 2021 and beyond. The Consolidated Appropriations Act, 2021 (CAA), which runs 5,593 pages and was signed into law on December 27, 2020, made a number of changes impacting small businesses and their owners. Some are reflected on 2020 returns; others do not take effect until 2021 and, thus, affect tax planning and estimated […]

COVID-19 killed vacation plans for most people in 2020. According to Expedia’s annual report issued last Spring, staying home had become the new norm. Until the pandemic is under control, this isn’t likely to change (although Carnival Lines reports that bookings for 2022 are already greater than in 2019). But it’s not too soon to be thinking about vacations. Importance of vacation time It’s a scientific fact that vacations are important to your physical and mental health. For example, according to one article, vacations help you de-stress, which helps to reduce heart disease and high blood pressure as well as […]

Small business owners by their nature are optimistic, as evidenced by various surveys (e.g., GGV Capital found that 83% of owners thought they’d do better in 2021 than in 2020). Despite signs of recovery, many businesses are still in the red and may continue to experience financial losses for some time to come. Losses may impact 2020 income tax returns as well as returns for 2021. If you own a sole proprietorship, partnership, limited liability company (LLC), or S corporation, the tax law calls you a noncorporate taxpayer. As such, you report your share of business losses on your personal […]