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.
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.
Why Tax Planning Is Important
Tax planning is an important task that too often gets overlooked. But by planning and keeping good records, you can save yourself a lot of time and money in the long run. In this article, we’ll explain what tax planning is, why it is so important for business, and some tips to get started.
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.
Should Your Business Be Worried About Quiet Quitting?
According to a recent survey conducted by Gallup, over half the U.S. workforce consists of quiet quitters.
How to Prepare for the Next Recession
Predictions for a recession have risen in the past few months. News of a recession often sparks fear among small business owners. However, those that prepare for a recession are more likely to survive.
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.
Student Loan Forgiveness: How the New Measures Impact Individuals with Student Loans
On August 24, 2022, the Biden Administration and the U.S. Department of Education announced the student debt reform plan with student loan forgiveness measures. The plan has already been enacted, and borrowers could see forgiveness measures beginning in early October 2022.
The Student Debt Relief Plan: A Breakdown of the Coming Changes for Americans with Federal Student Loans
On August 24, 2022, the Biden Administration and the U.S. Department of Education announced the Student Debt Relief Plan. This is a multi-part plan to help Americans with federal student loans. The new plan includes some student loan forgiveness options and adjustments to current repayment measures.
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.
2022 DMV Area Tax Relief and Rebates
Each year, several states make changes to their individual tax laws, including reforms and relief measures. Here are the current active changes for the DMV area.
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.
IRS to Raise Mileage Rate for Rest of 2022
In the wake of elevated gas prices, the IRS is increasing the optional standard mileage rate for the remaining months of 2022. These rates allow businesses and self-employed workers to calculate the deductible costs of using personal vehicles for business.
