Summer | 2018
(714) 505-9000 | 17501 East 17th Street, Suite 100 | Tustin, CA 92780
Learning the ABCs of the QBI deduction for pass-through entities
The Tax Cuts and Jobs Act (TCJA) permanently lowers the federal income tax rate for C corporations to a flat 21%, starting in 2018. But manufacturers that operate as sole proprietorships and “pass-through” entities aren’t eligible for this reduced tax rate. Instead, they may be eligible for a “qualified business income” (QBI) deduction for 2018 through 2025. This article covers the basics of this special deduction. A sidebar explains why it’s important to meet with your tax advisor to review your choice of entity under the new law.

Vendor fraud: Know the warning signs

When fraud strikes, the culprit might be sitting in the purchasing department. This department is particularly vulnerable to fraud because of the volume of transactions it processes and the varying pricing and billing policies that vendors use. This article provides a close-up view of vendor fraud scams and ways manufacturers can lower their risks.

Got operating problems? Employees may have solutions — if you ask for their input

Management doesn’t have all the answers — and may be aware of only a fraction of the problems. Rank-and-file workers can sometimes provide simple but effective solutions. This article shows how practical suggestions from the trenches added up to major improvements for a hypothetical manufacturer and provides guidance on how to implement an incentive program that encourages workers to speak up.

Midyear tax planning — Is it time to switch accounting methods?
The Tax Cuts and Jobs Act liberalizes the eligibility requirements for certain accounting methods that are generally easier to use and more flexible. This article highlights a higher gross receipts limit for eligibility to use the cash method, simplified alternatives for reporting inventory, and an exemption from the UNICAP rules. It also explains the pros and cons of the cash and accrual methods.

Firm News:
Nicolas K. Waldenmayer & Donald W. Watson Promoted to Partne r
Tustin, CA, 2018 - HMWC CPAs & Business Advisors is pleased to announce that Nicolas K. Waldenmeyer and Donald W. Watson have been promoted to partner at the firm.
Nicolas Waldenmayer - READ MORE
Donald W. Watson - READ MORE
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