Taxpayers think about how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. The goal is to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through this approach, the […]

Taxpayers are capable to sell appreciated real property without being taxed on the gain by exchanging it with another property. You can defer tax on your gain through a “like-kind” or Section 1031 exchange.   A like-kind exchange is a swap of real property held for investment or for productive use in your trade or […]

Many have begun to notice the increasing inflation in the U.S. and global economies. This rise can make individuals and businesses alike feel the pressure. Are business owners facing enough inflation pressure yet that it’s time to panic?   Not at all. As of this writing, a full-blown recession is possible but not an absolute […]

Electric vehicles (EVs) have been growing in popularity in recent years. If you’re considering purchasing one, or have recently purchased one, you may want to consider the impact on your taxes. If you buy an EV, you may be eligible for a federal tax break.   The tax code provides a credit to purchasers of […]

Closing a business isn’t as simple as shutting the doors and walking away. There are many steps in the process, and one of these is that once your business closes, it must file a final income tax return. Here’s a rundown of the basic requirements.   A business must file a final income tax return […]

Normally a signature must be witnessed “in the physical presence” by a retirement plan representative or notary public under the IRS regulations regarding electronic consents and elections. Recently, in Notice 2022-27, the IRS extended, through the end of 2022, its temporary relief from the physical presence requirement. This is good news for businesses that sponsor […]

Have you been receiving disability income? It may be taxable taxability depending on a few circumstances. The key issue is: Who paid for the benefit? If the income is paid directly to you by your employer, it’s taxable to you just as your ordinary salary would be. (Taxable benefits are also subject to federal income […]

Is your business considering merging with or acquiring another business? Make sure you understand how the transaction will be taxed based on the different scenarios below.   Stocks vs. assets From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock (or ownership interest). A buyer can directly purchase a seller’s […]

Are you getting the benefits and features you need? In today’s day and age, the majority of businesses have switched their computing operations to a cloud based platform. Have you evaluated your cloud services to determine if they are still meeting your needs?   Some business owners pay little to no attention to a cloud […]

Individuals can reap some benefit from vehicle expenses on their 1040 return just like businesses can on their returns. In prior years, an employee may potentially have deducted a portion of business mileage. Unfortunately, under current law, you may not be able to deduct as much as you could years ago.   For years prior […]