Small Business

Intangible property is any personal property that has value but cannot be seen or touched. It includes such items as the goodwill value of a business, patents, copyrights.
Gain or loss on the sale or exchange of amortizable or depreciable intangible property held longer than 1 year (other than an amount recaptured as ordinary income) is a section 1231 gain or loss.
Gain or loss on dispositions of other intangible property is ordinary or capital depending on whether the property is a capital asset or a noncapital asset.

Medical Savings Accounts (MSAs) are available to employees of small businesses and self-employed individuals if they participate in high-deductible health plans. The deductible limits and out-of-pocket limits in connection with these plans differ from those for HSAs.
For tax years beginning in 2012, the annual deductible for an MSA high-deductible health plan may not be less than $2,100 and not more than $3,150 for single coverage, and not less than $4,200 and not more than $6,300 for family coverage. Also, annual out-of-pocket expenses (exclusive of premiums) cannot exceed $4,200 for single coverage and $7,650 for family coverage.

The foreign earned income deduction rises to $97,600, an increase of $2,500 from the maximum deduction for tax year 2012.

The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit.
Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit.
You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone.
You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee.

You must use the general valuation rule to determine the value of most fringe benefits. Under this rule, the value of a fringe benefit is its fair market value.
The fair market value (FMV) of a fringe benefit is the amount an employee would have to pay a third party in an arm's-length transaction to buy or lease the benefit.
Neither the amount the employee considers to be the value of the fringe benefit nor the cost you incur to provide the benefit determines its FMV.

The value of employer provided meals is not taxable if furnished on your employer's business premises for the employer's convenience.
The employer can exclude any occasional meal or meal money he or she provides to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable.
The exclusion applies, for Coffee, doughnuts, or soft drinks, occasional meals or meal money provided to enable an employee to work overtime, occasional parties or picnics for employees and their guests.
Food or beverages the employer furnishes to employees qualify as a de minimis benefit, and can be deducted at their full cost. The 50% limit on deductions for the cost of meals does not apply.

The actual value of fringe benefits provided during a calendar year must be determined by January 31 of the following year. You must report the actual value on Forms 941 (or Form 944) and W-2. If you choose, you can use a separate Form W-2 for fringe benefits and any other benefit information.
Include the value of the fringe benefit in box 1 of Form W-2. Also include it in boxes 3 and 5, if applicable.
You may show the total value of the fringe benefits provided in the calendar year or other period in box 14 of Form W-2. However, if you provided your employee with the use of a highway motor vehicle and included 100% of its annual lease value in the employee's income, you must also report it separately in box 14 or provide it in a separate statement to the employee so that the employee can compute the value of any business use of the vehicle.

Generally, you must determine the value of noncash fringe benefits no later than January 31 of the next year. Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time.
For employment tax and withholding purposes, you can treat fringe benefits (including personal use of employer-provided highway motor vehicles) as paid on a pay period, quarter, semiannual, annual, or other basis. You do not have to choose the same period for all employees. You can withhold more frequently for some employees than for others.
You can add the value of fringe benefits to regular wages for a payroll period and figure income tax withholding on the total. Or you can withhold federal income tax on the value of fringe benefits at the flat 25% rate that applies to supplemental wages.

Fringe benefits are taxable and included in a recipient's pay Unless the law specifically excludes it.
Fringe Benefits are various non-wage compensations provided to employees in addition to their normal wages or salaries.
The most common of these benefits include health, dental, accident and life insurance, daycare, tuition reimbursement, disability income protection, retirement benefits, sick leave, vacation pay, profit sharing, funding of education and adoption benefit plans.
Normally, employer-provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits such as for golden parachute plans.