Our Blog

Considering Admitting a New Partner into Your Partnership?

Tom G. Porterfield, CPA

June 12, 2017

Admitting a new partner may be a simple matter, but tax planning can help avoid various tax problems associated with admitting a new partner. If your partnership has any unrealized receivables or substantially appreciated inventory items, the change in ownership is treated as a sale of those items and the current partners will recognize a taxable gain.

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Applying Research Tax Credits to Payroll Taxes

Julie Wilson, CPA

June 5, 2017

Recent changes in the federal tax law now allow companies to offset payroll taxes with federal research tax credits. This situation most likely applies to startup companies that are incurring payroll expenses, but not yet generating taxable income. This change is effective for tax years beginning in calendar year 2016.

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529 Education Savings Plans

Julie Wilson, CPA

May 22, 2017

Do you have a child or grandchild who is going to attend college or trade school in the future? Are you concerned with how to pay for their education? If so, you are like many of us that desire our children or grandchildren to continue their education and are concerned with how to pay for it.

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Using Stock Redemptions to Create Liquidity for C Corporation Owners

Tom G. Porterfield, CPA

May 8, 2017

Shareholders of closely-held C Corporations often find themselves in a tax dilemma when it comes to creating liquidity from their investment. Generally, the shareholder is compensated for work performed (Ordinary income to the shareholder) or for risk taken and paid in the form of dividends.

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When a taxpayer can't pay the balance due

Tom G. Porterfield, CPA

May 1, 2017

It happens – You’ve had a good year and get surprised by your tax liability when your return is ready to file. The growth in your business has tied up funds that you need to pay taxes. Or maybe you took a retirement plan distribution to pay outstanding medical bills and didn’t withhold for the related tax liability.

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Meals and lodging provided by an employer may be excludable from the employee's income.

Julie Wilson, CPA

April 24, 2017

In certain circumstances, an employer may provide employees with meals and lodging as part of their employment package.

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Manage Your Own Investments? Here’s How to Deduct Your Investment-Related Expenses

Tom G. Porterfield, CPA

April 17, 2017

Many clients, especially retired clients, take an active role in managing their own investments. If you fall in this category, you may be able to deduct the cost of subscriptions to financial periodicals, clerical expenses, etc.

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Why SUVs may be a better choice than an automobile used for business?

Julie Wilson, CPA

April 10, 2017

Other than being comfy and nice to drive, SUVs may be a better choice than a car when it comes to business vehicles.

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Read This Before Leasing Property from a Related Party

Tom G. Porterfield, CPA

April 3, 2017

It is very common for corporations to lease property from a shareholder or other related party. In fact, we advise clients to generally not hold real estate inside of corporations, but rather to hold real estate in an LLC with a lease arrangement with their corporations. Holding real estate inside of a corporation can create potential tax traps that are avoided by owning property individually or in an LLC. We’ll discuss this more in a future post.

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Deducting Business Meals and Entertainment

Julie Wilson, CPA

March 22, 2017

Business Meals and Entertainment are part of every small business. If you incur business meals and entertainment keep in mind that you’ll need to follow these rules to support the deduction and even then the business meals and entertainment expenses will be limited:

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Your Business May Benefit from the Research Tax Credit

Tom G. Porterfield, CPA

March 20, 2017

Legislation in late 2015, made the Research Tax Credit permanent and not part of the federal tax provisions that were commonly referred to the “extender provisions”.

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Paying Taxes By Credit or Debit Card

Julie Wilson, CPA

March 13, 2017

Cash or check may be soon replaced with Plastic or App in today’s economy. Even the IRS and several states give you the option to pay your tax bill online via credit or debit card today.

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Employer Reporting of Health Coverage

Julie Wilson, CPA

March 6, 2017

With the change in administration and current initiative to either abolish, replace or possibly rewrite the Affordable Care Act commonly known as Obamacare, there is much uncertainty regarding the healthcare mandate and how employers are affected by the Act.

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Does Your Employer Offer Financial and Retirement Counseling?

Tom G. Porterfield, CPA

February 27, 2017

Some employers may offer financial counseling services as a benefit to their employees. It is a nice benefit, but keep in mind that the employee receiving the benefit must report value of this benefit as income on their tax return. However, the employee may be entitled to an offsetting deduction that would allowing them avoid tax on some of the benefit.

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Notifying the IRS of An Address Change

Julie Wilson, CPA

February 20, 2017

Almost all of us will make a move during our lifetime. Whether you are making a move across town or across the country, you need to add the IRS to the list of organizations to notify of an address change.

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Gain or loss on sale of property received as a gift

Tom G. Porterfield, CPA

February 13, 2017

Everyone likes to receive gifts, especially if its cash. But if you happen to be considering gifting property or stock or are the lucky recipient of such a gift, there are a few things you’ll need to know. There are tax consequences to the recipient if the property is sold at a later date. And just to clarify, inherited property is not the same a gifted property.

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Deducting Local Transportation Costs

Julie Wilson, CPA

February 6, 2017

If you are in business, you’ll undoubtedly incur local transportation costs and you will want to make sure you can deduct these costs. If you are not deducting the actual costs incurred for a business vehicle, you’ll want to deduct local travel based on mileage.

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Miscellaneous Itemized Deductions

Tom G. Porterfield, CPA

January 30, 2017

Everyone wants more deductions when it comes to taxes, right? If you own a home, make charitable contributions, pay state income taxes or have medical expenses, then chances are you already itemize rather than take the “standard deduction”. The “standard deduction” is an amount taxpayers are allowed to deduct based on their filing status. If your potential itemized deductions exceed the “standard deduction”, then you can deduct more than the allowed standard deduction.

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Avoid an Inadvertent S Corporation Termination

Julie Wilson, CPA

January 23, 2017

Once a corporation is granted Subchapter S corporation status, shareholders and managers should take precaution to avoid and inadvertent termination in the election.

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Deferred Like Kind Exchanges

Julie Wilson, CPA

January 16, 2017

Deferred Like-Kind Exchanges also known as Starker Exchanges are a great way for property owners to defer gains on appreciated property. Like-kind exchanges don’t apply to personal residences and before entering into a deferred exchange, you should consult a tax professional to ensure that the properties involved in the exchange qualify a like-kind property.

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Taking a Depreciation Deduction for Automobiles

Tom G. Porterfield, CPA

January 9, 2017

One of the first questions we usually get when someone starts a business is “Can I write-off my car?” First, it depends on the level of business usage of the vehicle. When a vehicle is only used partially for business, the “write-offs” are limited and if business use is below 50%, depreciation is limited to the straight-line method.

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Qualified dividends taxed at favorable capital gain rates

Tom G. Porterfield, CPA

December 25, 2016

Ever look at your year-end investment tax forms and wonder what “Qualified Dividend” means? In a nutshell, it means you are taxed at the favorable capital gains rates.

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Deducting Foreign Business Travel

Tom G. Porterfield, CPA

December 19, 2016

In today’s business environment, even small businesses may have the opportunity to conduct business with customers outside of the United States. Along with this opportunity comes the question can such costs be deducted for tax purposes?

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Taking Advantage of the Self-Employed Health Insurance Deduction

Julie Wilson, CPA

December 12, 2016

Many of us small business owners are faced with the rising costs of company provided health insurance. If you are a sole proprietorship, partner or more than 2% shareholder in an S Corporation (referred to as “self-employed”), proper treatment of health insurance costs allows you a 100%, helping to offset the rising cost of health insurance.

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Hardship Withdrawals and Loans from 401(k) Plans

Tom G. Porterfield, CPA

December 5, 2016

Life doesn’t always go as smoothly as we have planned. Sometimes we are faced with an immediate financial need that has us eyeing our 401(k) retirement plan as a solution to that need. If you find yourself in this situation, you should be aware of the possible ways you may access this source of funds before you reach retirement.

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529 Education Savings Plans

Julie Wilson, CPA

November 28, 2016

Do you have a child or grandchild who is going to attend college or trade school in the future? Are you concerned with how to pay for their education? If so, you are like many of us that desire our children or grandchildren to continue their education and are concerned with how to pay for it.

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Can I deduct the cost of spouse Business travel?

Tom G. Porterfield, CPA

November 21, 2016

Have you ever been enticed by professional education or a customer meeting in an exotic destination? Even thought about how nice it might be to bring your spouse along to make the trip more enjoyable? Wouldn’t it be even better if you could write-off that trip? Read on and learn how to maximize those travel costs.

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Installment Sales of Business Property

Julie Wilson, CPA

November 14, 2016

Installment Sales of Business Property

Entrepreneurs build businesses and hopefully reap the benefits of their hard work when they can ultimately sell the business.

When it comes to selling a business or business property, sellers may be confronted with the decision to carry the financing.

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Explaining College Saving Plan AR 529 Tax Deduction

Tom G. Porterfield, CPA

November 7, 2016

We all know that college education costs have risen significantly over the past several years and the trend is expected to continue. We also hope that our children or grandchildren will receive scholarships and financial aid to cover those costs. Some of you may have even planned ahead by saving for college costs in excess of scholarships and financial aid. Generally saving for college is done through a Section 529 plan which allows for tax free growth.

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Taxation of Social Security Benefits

Tom G. Porterfield, CPA

October 31, 2016

If you are approaching retirement you are probably wondering how your social security benefits will be taxed. Like most tax questions, the answer is depends on the taxpayer’s specific circumstances.

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Understanding the Home Office Deduction

Tom G. Porterfield, CPA

October 24, 2016

If you're self-employed and work out of an office in your home, and if you satisfy the strict rules that govern those deductions, you will be entitled to favorable “home office” deductions. Home office deductions consists of direct and indirect expenses and are deductible from Schedule C income.

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How Do the Dependent Care Credit and Dependent Care Flexible Spending Accounts Work?

Tom G. Porterfield, CPA

October 17, 2016

Occasionally we are asked about how the dependent care credit works and if it is better for a taxpayer to use a dependent care flexible spending account or FSA to pay for dependent care. This summary explains how both the credit and the FSA work to benefit the taxpayer.

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The Tax Benefits of Employing a Child

Tom G. Porterfield, CPA

October 10, 2016

Employing Children under the age of 18 (and full-time students age 19 to 23). If you are self-employed, paying wages to a child can be an effective income-shifting tax strategy:

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Trade-in or Sale Vehicle Used for Business

Tom G. Porterfield, CPA

October 3, 2016

Here's an overview of the complex rules that apply to what appears to be a simple transaction, and some pointers on how to achieve the best tax results.

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It’s football season! So how does that skybox rental work for taxes?

September 26, 2016

If you are fortunate enough to afford a skybox or work for a company that has one, how does the box fit into taxes? First, skybox rentals are subject to the general business-related entertainment expense rules as well as rules specific to skybox rentals.

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New Office Location!

Crystal Lyle

September 14, 2016

We are excited to announce that our new business location is open. We have a beautiful space in a convenient new location. Our new address is 300 North College, Suite 215 in Fayetteville, but our phone number has not changed. It is still 479-287-4739.

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Porterfield & Company CPA announces new Northwest Arkansas location

Crystal Lyle

July 25, 2016

We are excited to announce that Porterfield & Company CPA, PLLC has signed a 5-year lease with Mathias Properties for space in the Today's Bank building located at College and Dixon. We have relocated to temporary space in the Today's Bank building at 300 N. College while Suite 215 is being renovated. We can still be contacted in Fayetteville at

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Our New Website!

Porterfield & Company CPA, PLLC is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.

Take a moment to...

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