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 5-Step Year-End Planning Checklist for Businesses
Year-end planning is more than just closing your books. It’s your opportunity to learn from the previous year and set your business on the right track to achieve your goals for the upcoming year. Here is a checklist of things you should start now and complete before the end of this year to close this year out right and help your business plan for the upcoming year.
TCJA Tax Benefits Phasing Out: What You Need to Know
When the Tax Cuts and Jobs Act (TCJA) was signed into law in 2017, the law made significant changes to the U.S. tax code, but those changes were always meant to be temporary. While some of those provisions have already expired, others will continue to phase out until 2027. Here are the notable tax benefits that are expiring soon.
Two New Bills Propose Tax Changes
The House and Senate announced two proposed bills earlier this summer. The bills include tax changes to revive the child tax credit and increase the standard deduction.
TJCA Bonus Depreciation Has Started Phasing Out
When the Tax Cuts and Jobs Act (TCJA) was signed into law in 2017, it included many beneficial tax provisions for businesses. One of the most notable was an increase in the bonus depreciation allowance from 50% to 100%. However, the bonus depreciation allowance is scheduled to phase out over a period of four years, beginning in 2023.
Which Car Purchase Can I Get a Tax Break For?
The Inflation Reduction Act of 2023 introduced a variety of clean energy credits. However, these Clean Vehicle Tax Benefits do not apply to all vehicles or all EV or Hybrid vehicles.
Why 2022 Tax Refunds are Smaller
Americans have been surprised to find that their 2022 tax refunds are smaller than in the past two years. The main reason for the difference in refund sizes is the expiration and reduction of several tax credits. Here are some expired and rolled-back tax credits affecting 2022 tax refunds.
Tax Benefits for Active & Retired Military in Virginia
Our military consists of brave men and women who serve our country, often in dangerous conditions. Virginia offers a variety of tax benefits for active military personnel and veterans to help ease their financial burden.
VA Passes PTE Tax Election: What to Know
Starting this year, business owners of pass-through entities (PTEs) in the state can be taxed at the entity level, at a rate of 5.75 percent.
Hiring? You May Be Eligible for a Valuable Tax Credit, the WOTC
Business owners who need to hire should be aware of a valuable tax credit that’s available to employers hiring individuals from one or more targeted groups. The Work Opportunity Tax Credit (WOTC) is generally worth $2,400 for each eligible employee but can be worth more — in some cases much more. This article provides an overview of WOTC eligibility and potential tax savings.
Beware the Five-Year Rule for Roth IRA Withdrawals
What makes Roth IRAs so appealing, primarily, is the ability to withdraw money from them tax-free. But to enjoy this benefit, there are a few rules taxpayers must follow, including the widely misunderstood “five-year rule.” This article explains the ins and outs of this rule.
10 Red Flags for IRS Audits
Even though the overall IRS audit rate is currently low historically, it’s expected to increase as a result of provisions in the Inflation Reduction Act signed into law in August. So it’s more important than ever for taxpayers to follow the rules to minimize their chances of being subject to an audit. This article discusses some of the tax return items that might trigger scrutiny from the IRS.
Selling your home?
High demand for homes has created a seller’s market. Those thinking about selling their homes will want to determine whether they qualify for the home sale gain exclusion. This article details the exclusion’s requirements.
Pump up tax savings with the fuel credit
Companies that wish to reduce their tax bills or increase their refunds shouldn’t overlook the fuel tax credit. Many businesses qualify for it and it’s relatively easy to calculate. This article explores the potential savings and how to go about claiming this often-overlooked tax break.
First-year bonus depreciation and Sec. 179 expensing: Watch out for the pitfalls
Many companies are eligible for tax write-offs for certain equipment purchases and building improvements. These write-offs can do wonders for a business’s cash flow, but whether to claim them isn’t always an easy decision. In some cases, there are advantages to the regular depreciation rules. This article reviews why it’s critical to look at the big picture and develop a strategy that aligns with a company’s overall tax planning objectives.
What a difference six months can make
Those who have money invested in the stock market are well aware of potential volatility. Needless to say, this volatility can affect a person’s net worth. Something many investors might not think about is the potential effect on estate tax liability. Specifically, if the value of stocks or other assets drops precipitously after a person’s death, estate tax could be owed on value that has disappeared. This article details how an executor can ease estate tax liability in this situation by electing to use an alternate valuation date.
Deferring a tax hit with a Sec. 1031 exchange
A Section 1031 exchange (also known as a like-kind exchange) allows commercial or investment real estate owners to avoid capital gains tax when selling the property by swapping qualifying properties. This article notes that recent legislation has cracked down on Sec. 1031 exchanges, but currently it’s still possible to use this technique for qualified real estate transactions. A sidebar explains multiple-party transactions.
IRS Increases Retirement Contribution Limits in Response to Inflation
On October 21, 2022, the IRS raised contribution limits for 401(k), IRA, and most 403(b) and 457 plans for 2023. Here are the retirement contribution limits for 2023.
New Energy Credits for Individuals Under the Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act was signed into law. The new bill contains climate change measures and tax incentives to encourage Americans to reduce their carbon footprint. Depending on the purchase and purchase amount, it may qualify for up to $10,000 or more tax breaks and rebates.
