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Stay steady in a troubled economy The novel coronavirus (COVID-19) pandemic has done severe economic damage to many U.S. businesses, and it will likely take considerable time to recover. Here are some tried-and-true suggestions to help keep your business on the right track. Cutting back strategically While it may seem obvious that in a faltering…

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Beginning on July 1, 2019, the New Jersey state minimum wage rate will increase from the current rate of $8.85 per hour to $10.00 per hour. The rate will then continue to increase annually on January 1 by an additional $1.00 until it reaches $15.00 per hour in 2024. Thereafter, the minimum wage rate will…

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The manufacturers’ deduction, also called the “Section 199” or “domestic production activities” deduction, is 9% of the lesser of qualified production activities income or taxable income. The deduction is also limited to 50% of W-2 wages paid by the taxpayer that are allocable to domestic production gross receipts. Yes, the deduction is available to traditional…

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You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. Material participation…

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As tax time approaches, don’t forget to ask your accountant about the “Domestic Production Activities Deduction” (DPAD).  This deduction can provide a significant tax break for businesses that qualify. The DPAD provides for a deduction equal to 9% of the net income from eligible activities, subject to certain limitations.  Among the more common eligible activities are:…

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