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According to the Protecting Americans from Tax Hikes (PATH) Act of 2015, new businesses or start-up companies that are eligible to receive research & development (R&D) credit can elect to offset employer portion of social security payroll tax liability. The maximum benefit an eligible company can claim against payroll taxes is $250,000 for up to five years. This payroll offset allows companies to receive a benefit for research activities even if they aren't profitable.
The Comptroller of Maryland has provided a Tax Alert regarding the sales and use tax collection requirements applicable to marketplace facilitators and sellers. Under the new law effective October 1, 2019, marketplace facilitators must collect Maryland sales and use tax on a retail sale or sale for use by a marketplace seller to a buyer in Maryland. A marketplace seller is not required to collect sales and use tax if the marketplace facilitator collects the sales and use tax.
Often times, we get asked whether certain interest that clients paid during the year is deductible on their income tax return. Unfortunately, not all interest that an individual pays is deductible. The rules for deducting interest vary, depending on whether the loan proceeds are used for personal, investment, or business activities.
Lists are an essential foundation of QuickBooks functionality. Two of the lists that may become cumbersome are the Chart of Accounts and the Items List. The Chart of Accounts is the complete list of all the company’s accounts and balances. In QuickBooks, it represents and organizes the company's assets, liabilities, income, and expense. You can tell how much money your company has, how much money it owes, and how much money is coming in and out by simply looking at your Chart of Accounts. Items are important for effective tracking and reporting.
