Our Financial Blog
New Business Start-up Costs
Starting a business can seem daunting to the prospective entrepreneur. A step-by-step plan to get started can alleviate some of the angst. The cost of getting started is one of the first considerations. These costs can be identified and addressed in...
Business Succession Planning
The Importance of Business Succession Planning Every business – large and small – needs a business succession plan. Just like Warren Buffett and Jeff Bezos prepared for the day that they would step away from the C-suite, every small and mid-sized business owner...
Partners May Not Be Employees
If your partnership has been treating you and other partners as employees of a disregarded entity owned by the partnership so the partners can participate in employee benefit plans and receive other employee benefits, you’d better read this. Tax regulations (1) issued...
The Hidden Costs of Sloppy Bookkeeping
A recent Stanford study reviewed the aftermath of the Enron collapse and the repercussions to Enron's accounting firm's former clients. The primary trend they identified was when former clients issued accounting restatements or revisions because of less-than-accurate...
Tax Issues When Converting a Rental to Your Personal Residence
Deductions When a Rental Property Is Converted to a Personal Residence Converting a rental property to a personal residence raises unique tax implications. If you own a home that you currently rent out and are thinking of converting the property to use as your...
Research Credit Available as a Payroll Tax Credit Doubled by the Inflation Reduction Act
The Inflation Reduction Act that President Biden signed into law in August of 2022, has a provision that could benefit many small business startups, allowing them to potentially double the amount of the research and development tax credit that can be used against...
Business v. Hobby – How to Tell the Difference for Tax Purposes
we can all agree that Scarlett Johansson and Tom Hiddleston act for a living. Likewise, the artists whose works sell for millions are clearly in the art business. It took a commitment but they’ve transcended the joy of the activity they love to making a...
Partnership, S-Corp and Trust 2022 Extensions Ending Soon
If you have a calendar year 2022 partnership, S-corporation, or trust return on extension, don’t forget the extension for filing those returns ends on September 15, 2023* (October 2, 2023* for trust returns). Pass-through entities such as partnerships, S-corporations,...
Planning for Your Retirement – New Wrinkles from the SECURE 2.0 Act
In 2019 Congress passed legislation named the Setting Every Community Up for Retirement Enhancement Act – shortened to the SECURE Act – that included a number of retirement plan changes and enhancements. In late December, 2022, the SECURE 2.0 Act was passed and signed...
Knowing how scammers pose as the IRS can help taxpayers protect themselves
Crooks are always looking for new ways to scam unsuspecting taxpayers. Scammers impersonate the IRS by phone or email, in person, or by mail or delivery service – and cost people their time and money. By staying vigilant against schemes and scams, taxpayers can...
Taxation and Sales of Inherited Property Get Beneficial Treatment
If you are the recent beneficiary of an inheritance, you may be wondering if you will need to pay tax on the cash, stocks or real property that you received. Generally, the answer is no, and you don’t even need to report the receipt of the inheritance on your income...
Homeowners: review these house-related deductions and programs
The summer months are a popular time to buy or sell a house. New homeowners should put reviewing the tax deductions, programs and housing allowances they may be eligible for on their move in to-do list. Deductible house-related expensesMost home buyers take out a...
Mid-Year Tax Planning Checklist
Waiting until after the close of the tax year to worry about your taxes can result in missed opportunities that could have reduced your tax liability or provided financial benefits. Mid-year is the perfect time for tax planning. The following are some events that can...
Employee or Independent Contractor – A Primer for Employers and Employees
It is not uncommon for employers to misclassify employees as independent contractors, either to intentionally avoid their withholding and tax responsibilities or because they are not aware of the laws regarding the issue. Misclassifying a worker can have significant...
Learn the warning signs of Employee Retention Credit scams
Businesses and tax-exempt organizations should watch out for telltale signs of misleading claims involving the Employee Retention Credit. Scammers and unscrupulous promoters continue to run aggressive broadcast advertising, direct mail solicitations and online...
Your Entrepreneur Start-Up Guide: The Best Practices to Help Motivate Success
Ask any experienced entrepreneur and they will tell you that the difference between running a business and running a successful business is massive. To truly give yourself the best chance of success, and to help achieve your overall goals in the most effective ways...
Building on filing season 2023 success, IRS continues to improve service, pursue high-income individuals evading taxes, modernize technology
Thanks to Inflation Reduction Act resources, the IRS delivered dramatically improved service in filing season 2023. IRS achieved an 87% level of service. Through the end of filing season, IRS answered 3 million more calls, cut phone wait times to three minutes from 28...
Relief For Some 2023 IRA RMDs
On July 14, 2023, the IRS issued Notice 2023-54 announcing that traditional IRA owners who will attain age 72 in 2023 (that is, individuals born in 1951) will have to take their first required minimum distribution (RMD) by April 1, 2025, rather than April 1, 2024....
Tax Changes Coming After 2025
By now you have probably gotten used to the provisions in the Tax Cuts and Jobs Act (TCJA) that became effective January 1, 2018. But don’t forget, most of the tax changes made by the TCJA are not permanent and will expire (sunset) after 2025. This will have an...
What’s Best, FSA or HSA?
Many employers offer health flexible spending accounts (FSAs) and health savings accounts (HSAs) as part of their employee benefits packages. Both plans allow you to set aside money to pay medical expenses with pre-tax dollars, providing a significant tax benefit. But...