INSIGHTS
We See Things Differently
When we’re not addressing clients’ needs for business and financial advisory, assurance or tax matters, we’re researching, learning and thinking about related subjects. Check out some of our thinking on a broad variety of topics that may impact your organization. And if you’d like to learn more about any of these topics, we’re always happy to talk.
The Inflation Reduction Act Signed into Law: How It Affects Taxes for Businesses
On Sunday, Aug 7, 2022, the Senate passed a $750 billion health care, tax, and climate bill called the Inflation Reduction Act. The bill outlines changes that could have tax implications, specifically for businesses. The bill still has to clear the House of Representatives before it is set in motion. Here is a breakdown of the bill’s tax implications if it is passed and signed into law.
Social Security Benefits for 2023: Why Americans Could See an 8% Increase
As the cost of living continues to rise, the Social Security Administration conducted its annual analysis and reported that we could see up to an 8% increase in SSA benefits for 2023.
It’s Time to Rethink If the Employee Retention Credit Is Right For Your Organization
Congress recently updated and expanded the guidelines for a COVID-relief measure called the Employee Retention Credit (ERC). If you follow the old guidelines for the ERC, you could accidentally disqualify your organization. You could still qualify even if your organization took a PPP loan or didn’t see a decline in revenue.
The Gas Rebate Act of 2022: Proposed Stimulus Checks
The average national gas price is $4.24 per gallon, a record-breaking high. A new bill called the Gas Rebate Act of 2022 would provide relief to Americans affected by the high gas prices if passed.
New K-2 and K-3 Relief for Pass-Through Entities
On February 16, 2022, the IRS announced new relief measures for qualifying businesses. Here’s what you need to know about K-2 and K-3 schedules, pass-through entities, and if your business qualifies for this exemption.
Can I Write Off My Home Office?
With remote work becoming part of the new normal, you might be wondering if you can write off your home office. If the following requirements are met, you might be able to receive compensation.
Pass-Through Businesses in Maryland Electing to be Taxed at an Entity Level
Maryland Businesses can elect to be taxed at an entity level. Here are the details on who it is available to, what the benefits are, and how to start the process.
Working Remotely From “Out of State” Can Be Taxing
During the COVID-19 pandemic, it’s been fairly common for people to work remotely from another state — across state lines from the employer’s place of business or even across the nation. Employees that fit that situation may need to file tax returns in both states, potentially triggering additional state taxes.
5 Tax Planning Tips for Retirees
There’s a common misconception that, after retirement, tax bills shrink, tax returns become simpler and tax planning is a thing of the past. That may be true for some, but many people find that the combination of Social Security, pensions and withdrawals from retirement accounts increases their income in retirement and may even push them into a higher tax bracket. This article provides five tax-planning tips for retirees.
Rental real estate: Determining if a property is a business or an investment
If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill. The distinction is especially important because of the 20% Sec. 199A deduction for certain sole proprietors and pass-through entity owners. This article provides a brief overview of the deduction and rental real estate guidance related to it. A sidebar spotlights the IRS definition of “real estate professional” as it relates to this tax matter.
Oops, you overfunded your 529 plan
If money is held too long in a Section 529 college savings plan, there could be tax consequences. This article describes alternatives for savers who have overfunded their accounts.
Are you liable for “nanny taxes”?
When employing household workers — which may also include housekeepers, cooks, gardeners, health care workers and other employees — it’s important to understand the tax obligations, commonly referred to as “nanny taxes.” This article provides a quick review.
A Cost Segregation Study Is One Way To Boost Cash Flow
For businesses planning to buy, build or substantially improve real property, a cost segregation study can help accelerate depreciation deductions, reducing taxes and boosting cash flow. Lookback studies can also be done for prior years. This article explains how cost segregation studies work and how tax deductions are recovered.
When can you deduct business-related meals . . . and how much can you deduct?
The TCJA permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. But it didn’t specifically address the meals, beverages and snacks that often accompany entertainment activities. Then the CAA temporarily increased the deduction for certain business-related meal expenses. Many business owners today aren’t sure what they can deduct or how much they can deduct. This article tells them what they need to know.
Great American Rescue Plan Signed into Law
News broke on March 11, 2021, that Biden’s American Rescue Plan Act of 2021 had been signed into law, sending $1.9 trillion in Coronavirus relief to individual Americans and small businesses. Here’s what you need to know about the new bill and how it will affect you and your business.
Key Points from Biden’s American Rescue Plan
President Joe Biden recently laid out a $1.9 trillion emergency relief plan called the American Rescue Plan. The plan provides resources for fighting the pandemic along with economic relief. Here’s how this proposed plan could impact you.
5 tips for safe intrafamily loans
If a relative needs financial help, offering an intrafamily loan might seem like a good idea. But if not properly executed, such loans can carry negative tax consequences. This article presents five simple steps that would-be lenders should consider before making such an arrangement.
Rolling over capital gains into a qualified opportunity fund
Anyone selling a business interest, real estate or other highly appreciated property could get hit with a substantial capital gains tax bill. One way to soften the blow—though it ties up the funds long term—is to “roll over” the gain into a qualified opportunity fund (QOF). This article explains how QOFs work and their potential benefits.
