If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The following will explain how to determine the basis of an inherited property.   The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), […]

Entrepreneurs often don’t know that many of the expenses incurred by start-ups can’t be currently deducted. You should be aware that the way you handle some of your initial expenses can make a large difference in your federal tax bill. If you’re starting or planning to launch a new business, keep these three rules in […]

Are you a small, mid-size or large business? No matter the size or shape of a business, one really can’t overstate the importance of sound accounts receivable policies and procedures. Without a strong and steady inflow of cash, even the most wildly successful company will likely stumble and could even collapse. If your accounts receivables […]

Are you a investor or a trader? If you have significant investment activities you could be considered a trader and qualify as someone who is involved in a trade of business and possibly deduct investment related expenses.   Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses […]

The Trust Fund Recovery Penalty is an extremely severe penalty and should not be taken lightly. It applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Here are some answers to questions about the penalty so you can safely avoid it.   This money withheld […]

As measures set forth due to COVID-19 start to ease, some of them will stay in place long term. One of the possible changes that may be made permanent is the relief from a requirement related to the administration of 401(k) plans.     A virtual solution In IRS Notice 2021-40, the IRS recently announced […]

Even though the IRS just released statistics showing that fewer returns were audited for the 2020 fiscal year compared to prior years, the IRS will still examine thousands of returns this year. With proper planning, you may fare well even if you’re one of the unlucky ones.   Latest statistics Overall, just 0.5% of individual […]

Are you a business owner and wondering if you are eligible to take the deduction for qualified business income (QBI)? Here are 10 facts that can help you determine if you are eligible for this valuable tax break.   It’s available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships and S […]

Regarding business technology, the only sure thing is that change is the main constant. That is why companies need to regularly undertake IT projects such as developing custom software or upgrading network infrastructure. One potential solution to keeping IT projects on schedule and within budget is to follow an approach called the critical path method […]

In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. This exception allows contributions to be made for nonworking spouses.   For 2021, the amount that an eligible married couple can contribute to an IRA for a nonworking spouse is $6,000, which is the […]