Business Newsletter                                                 June 2015
Tax Deadlines
 
  
Federal Estimated Tax Payment - The deadline for the second 2015 federal corporate estimated income tax payment is June 15, 2015. Please make your payment to the IRS using the EFTPS system. 
  
Tennessee Franchise & Excise Tax Payment - The deadline for the second 2015 Tennessee franchise & excise estimated tax payment is June 15, 2015. Please go to the Tennessee Department of Revenue website and make the payment online.  Estimated tax payments for franchise & excise taxes are only due if the total of these two taxes are greater than $5,000 for the entire year.
  
Extensions - Corporations and Partnerships, (LLCs) : For calendar year corporations, partnerships and limited liablilty companies who filed extensions, the deadline for filing your 2014 income tax return is September 15, 2015. If we do not have your tax information, please provide this to us soon.  If we have your information, we will contact you as soon as we complete the return. This is the final deadline.
  

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Back to Basics - What is a Business Expense?

 

For a business expense to be deductible it must be ordinary and necessary.  An ordinary expense is one that is common and accepted in your industry.  A necessary expense is one that is helpful and appropriate for your trade or business.  An expense does not have to be indispensable to be considered necessary.   If you have incurred an expense that is unusual to your business, these rules need to be reviewed to determine if it is deductible. 

  

Charitable Donations

 

Corporate Donations - a deduction of a corporate donation to a charitable organization is limited to 10% of its taxable income for the year calculated without regard to the following:

     *  the deduction for the charitable contributions

     *  the deductions for dividends received and for dividends paid on

         certain preferred stock of public utilities

     *  any net operating loss carryback to the tax year

     *  any capital loss carryback to the tax year

Any donation that cannot be deducted in the current year can be carried over for 5 years but would be subject to the same rules listed above.

 

Partnership, LLC Donations - donations made thru Partnerships and Limited Liability Companies taxed as Partnerships pass thru to the partners personal income tax return and would be subject to any limitations on the personal level.

                            6921 Office Park Circle, Knoxville, TN  37909

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Please contact us for your 2015 tax and financial planning.