Awards and settlements are routinely provided for a variety of reasons. A person could receive compensatory and punitive damage payments for personal injury, discrimination or harassment. Some of this money is taxed by the federal government, and perhaps state governments. Hopefully, you’ll never need to know how payments for personal injuries are taxed. But here […]

Does your business travel a lot and have you ever considered buying a corporate aircraft? There are many tax and non-tax implications of owning an aircraft. Let’s take a look at the basic tax rules. Business travel only In most cases, if your company buys a plane used only for business, the company can deduct […]

Businesses have had to tackle unprecedented changes over the last couple years. Think of all the steps you’ve had to take to safeguard your employees from COVID-19, comply with government mandates and adjust to the economic impact of the pandemic. Let us cast our minds to what the future will look like for 2022 and […]

Are you concerned about your 2021 tax bill? Don’t worry because there is good news, you may still have time to reduce your liability. Here are three quick strategies that may help you trim your taxes before year-end. 1. Accelerate deductions/defer income. Certain tax deductions are claimed for the year of payment, such as the […]

Want to reduce your 2021 tax liability? Before the year is up, consider executing a few tax savings strategies noted below. Purchase assets Thinking about buying new or used equipment, machinery or office equipment in the new year? Buy them and place them in service by December 31, and you can deduct 100% of the […]

The IRS recently announced the cost-of-living adjustments to retirement plan contribution limits and thresholds. Here are some of the highlight that were included in Notice 2021-61. Elective deferrals. The annual limit on elective deferrals (employee contributions) will increase from $19,500 to $20,500 for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified […]

The Infrastructure Investment and Jobs Act (IIJA), which was signed into law on November 15, 2021, created reporting requirements for cryptocurrency beginning in 2023. Cryptocurrency exchanges will be required to perform intermediary Form 1099 reporting for cryptocurrency transactions. Cryptocurrency use has increased drastically in recent years. This growth naturally leads to new compliance, with the […]

The Employee Retention Credit (ERC) was a valuable tax credit that helped many employers survive the COVID-19 pandemic. While originally the credit was set to apply through the end of 2022, a new law has retroactively terminated it. It now only applies through September 30, 2021. If the employer is a “recovery startup business” the […]

Budgeting is essential in business and can make for a smooth, successful year when prepared thoughtfully. However, an unrealistic budget can make for a stressful year of trying to meet unfeasible goals. Whether you’ve already put together a 2022 budget or still need to get on that before year end, here are four red flags […]

Some employers provide a tax-saving flexible spending account (FSA) to help pay for health and dependent care expenses. If you have a FSA you will want to read on for some rules and reminders as 2021 comes to a close. An account for health expenses A pre-tax contribution of $2,750 to a health FSA is […]