Tax Law Updates Every Business Should Know

With 1099s already out of the way (hopefully you met the January 31 deadline), businesses are
preparing for all other 2019 tax reporting responsibilities. The team at Vickney & Associates
wants to help you tackle tax time by keeping you abreast of the business tax laws.

Tax Reminders, Three Ways

1. Mileage and expenses. Make sure to document mileage and any out-of-pocket
expenses (i.e., postage, marketing costs, etc.). Business credit card providers like
American Express make it easy by automatically tracking your annual business expenses
into the proper IRS reporting categories when you use your card. Remember these 2019
rates when calculating your business mileage:

  • 58 cents per mile for business miles

  • 20 cents per mile for moving or medical reasons

  • 14 cents per mile for driving for charitable or service organizations

If you drive less than 50% of your time for business, use the standard rates. If you drive
more than 50% of your time for business, note that it may better for you to claim your
actual expenses.

2. Qualified Business Income (QBI). There is still a QBI deduction for 2019.  In its simplest
form, this is 20% of net profit for both actively run businesses and rental properties that
you’re also active in. For more details, contact us or check the FAQs about QBI
deductions provided by the IRS.

3. Fixed assets deduction. These are items of value that you buy and will use in your
business for an extended period of time. Examples of fixed assets include items such as
land, buildings, motor vehicles, machinery, furniture, office equipment, and computers.
Be sure to bring a copy of the invoice for your fixed assets to your accountant. Small
businesses can immediately deduct (through Section 179) up to $1,000,000 in fixed
assets.

For more information, read fact sheets summarizing tax law updates for businesses on the IRS
website. Or to get immediate answers and help with what impacts your business, simply
contact the expert Vickney & Associates tax team at your convenience.

Let Us Handle Your Business Taxes and More

You’re busy enough running your business—the last thing you should have to worry about is
your business taxes. Trust the professionals at Vickney & Associates to take care of payroll,
accounting, and tax filing details for you all year long. We’re waiting to serve you at (262) 673-
6322 or at info@vickneycpa.com.