Watson CPA Group - Knowledgebase

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Automobile Decision Tree
By Jason Watson (Google+) Posted November 23, 2018 In deciding whether to own the automobile personally or through your S corporation, here is a set of examples to help you make a decision. It is not a hard and fast set of rules, but will provide some guidance. First, let’s establish the...
06 Dec, 2018 Views: 0 Comments: 0
Section 199A W-2 Safe Harbors
By Jason Watson (Google+) Posted November 23, 2018 This is one of the dorky accountant questions… which number on the W-2 do I use? The IRS defined three safe harbors for the use of Section 199 Domestic Production deduction back when that was a thing. Later, in IRS Notice 2018-64 released...
26 Nov, 2018 Views: 0 Comments: 0
You Own the Automobile, Lease Back to Your Company
By Jason Watson (Google+) Posted November 23, 2018 This might take a bit of getting used to so we will start with a similar situation. If you owned and operated a landscaping company, you might own the heavy equipment personally, and lease it back to the company. This is very common, and is...
25 Nov, 2018 Views: 0 Comments: 0
You Own the Automobile, Take Mileage Deduction
By Jason Watson (Google+) Posted November 23, 2018 This is dead. Thanks to the Tax Cuts and Jobs Act of 2017 all miscellaneous deductions that were once subjected to 2% adjusted gross income limits and then deducted on Schedule A are gone. Obtaining a tax deduction through a mileage deduction on...
25 Nov, 2018 Views: 0 Comments: 0
Section 199A Side by Side Comparisons
By Jason Watson (Google+) Posted November 23, 2018 We created a handful of examples on the follow pages with two intentions. One, to demonstrate how the Section 199A deduction is calculated and Two, to show that an S Corp remains a critical tax reduction vehicle. Brace yourself for nauseating...
25 Nov, 2018 Views: 0 Comments: 0
Final Words
By Jason Watson (Google+) Posted November 23, 2018 We hope you enjoy reading this book, and wish you the very best of luck in all your endeavors. If we can be of any assistance, please don’t hesitate to reach out to us! Taxpayer's Comprehensive Guide to LLCs and S Corps : 2019 Edition This...
25 Nov, 2018 Views: 0 Comments: 0
Expectations of Our Clients
By Jason Watson (Google+) Posted November 23, 2018 We select our clients on two important criteria. First, we expect our clients to be open, honest and responsive in communication. Second, we prefer to work with clients who view our partnership as a collaboration, where our challenges and...
25 Nov, 2018 Views: 0 Comments: 0
No BS
By Jason Watson (Google+) Posted November 23, 2018 We are not salespeople; we are consultants. We are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide. We see far too many crazy schemes and...
25 Nov, 2018 Views: 0 Comments: 0
Core Competencies
By Jason Watson (Google+) Posted November 23, 2018 Outside of typical business services, consultation and tax preparation, we have focused on three niche competencies for our group of Colorado Springs CPAs and business advisors. S Corp elections and administration. Rental properties...
25 Nov, 2018 Views: 0 Comments: 0
Consultative Approach
By Jason Watson (Google+) Posted November 23, 2018 How are we different? Easy! We take a consultative approach to our client relationships. We have the experience of a downtown firm without the stuffiness. The Watson CPA Group will be your advocate by putting you in a position to make informed...
25 Nov, 2018 Views: 0 Comments: 0
More About the Watson CPA Group
By Jason Watson (Google+) Posted November 23, 2018 The Watson CPA Group has provided worldwide business consulting, accounting and tax preparation from our Colorado Springs offices since 2007. We use secure client portals to safely exchange financial information, saving you time and resources....
25 Nov, 2018 Views: 0 Comments: 0
Client Portal, Long Distance Relationships
By Jason Watson (Google+) Posted November 23, 2018 Since 2007 we have used ShareFile to administer our Client Portal which provides secure, online document exchange. The Client Portal will allow you to securely upload your financial documents to the Watson CPA Group. Most email servers balk at...
25 Nov, 2018 Views: 0 Comments: 0
Watson CPA Group Fee Structure
By Jason Watson (Google+) Posted November 23, 2018 The Watson CPA Group prides itself in being transparent and having a simple fee structure. Most business services and tax returns will fit into the fees described below. Sure, there's always the outlier or the unusual situation, but the...
25 Nov, 2018 Views: 0 Comments: 0
Retirement Planning Recap
By Jason Watson (Google+) Posted November 23, 2018 There are also several options and combination of options, and we can work with you to settle into the best plans. Here are some jumping off points- One Person Show or Husband/Wife Team Solo 401k plan with Roth Option is the best bet. Very low...
25 Nov, 2018 Views: 0 Comments: 0
ExPatriates or ExPat Tax Deferral Planning
By Jason Watson (Google+) Posted November 23, 2018 For our small business owners or contractors working overseas, there is a consideration when it comes to tax deferred retirement planning. Currently the amount of foreign earned income that can be excluded from ordinary income tax is $104,100...
25 Nov, 2018 Views: 0 Comments: 0
Exotic Stuff
By Jason Watson (Google+) Posted November 23, 2018 We don’t want to go too far down this road, but you should be aware of this option. It is usually reserved for highly compensated employees such as executives who can set aside more money, and it might allow a non-qualified deferral to help a...
25 Nov, 2018 Views: 0 Comments: 0
Non-Qualified Deferred Compensation Plan
By Jason Watson (Google+) Posted November 23, 2018 We don’t want to go too far down this road, but you should be aware of this option. It is usually reserved for highly compensated employees such as executives who can set aside more money, and it might allow a non-qualified deferral to help a...
25 Nov, 2018 Views: 0 Comments: 0
Controlled Groups
By Jason Watson (Google+) Posted November 23, 2018 Another concern is controlled groups. If you think you are clever and create a holding company to only offer retirement savings plans to certain employees (like your family), the IRS says No. There are controlled group rules where a holding...
25 Nov, 2018 Views: 0 Comments: 0
SEP IRA, Roth IRAs and the Roth Conversion
By Jason Watson (Google+) Posted November 23, 2018 If you want your retirement savings to grow tax free, you need a Roth IRA or Roth 401k. If tax-free growth is generally preferred, you can accomplish this outside of the business. However, there are some problems, or at least potential problems....
25 Nov, 2018 Views: 0 Comments: 0
SEP IRA
By Jason Watson (Google+) Posted November 23, 2018 Simplified Employee Pension Individual Retirement Arrangement. Yes, the A in IRA does not stand for Account, it technically is Arrangement but if you say Account it’s okay. We know what you mean. But if you call your IRA a 401k, our OCD does...
25 Nov, 2018 Views: 0 Comments: 0
SIMPLE 401k
By Jason Watson (Google+) Posted November 23, 2018 If you have employees beside your spouse, a SIMPLE 401k might be a good option. Under a SIMPLE 401k plan, an employee can elect to defer some of his or her compensation. But unlike a traditional 401k plan, the employer must make either- A...
25 Nov, 2018 Views: 0 Comments: 0
Turbo Charged 401k Plans
By Jason Watson (Google+) Posted November 23, 2018 Oftentimes business owners want to put away a ton of money in a small business 401k plan, but cannot due to inherit limitations within the plan. Or business owners want to keep most of the plan money for themselves, which is shocking yet...
25 Nov, 2018 Views: 0 Comments: 0
401k Loans and Life Insurance
By Jason Watson (Google+) Posted November 23, 2018 401k plans may have loan provisions. This means you can borrow up to 50% of the account balance with a hard ceiling of $50,000 (or 50% of $100,000+). You are basically paying yourself interest on the loan. 401k plans can also buy life...
25 Nov, 2018 Views: 0 Comments: 0
Rolling Old 401k Plans or IRAs into Your Small Business 401k Plan
By Jason Watson (Google+) Posted November 23, 2018 Other benefits of having a 401k within your business include being able to consolidate other plan assets such as profit sharing, money-purchase plans, traditional IRAs and SEP IRAs into your 401k plan. And you can gain some elegance with this-...
25 Nov, 2018 Views: 0 Comments: 0
Two 401k Plans
By Jason Watson (Google+) Posted November 23, 2018 Another twist. Let’s say you have a side business and a regular W-2 job where you max out your deferrals into the 401k plan. You cannot make employee deferrals to your side business solo 401k plan since you are collectively limited to $19,000...
25 Nov, 2018 Views: 0 Comments: 0