Your business might have a more straightforward route to generating financial statements

Accurate financial statements are essential for all businesses. Publicly held companies must not only release them but also subject them to independent CPA audits, offering the highest level of assurance to external stakeholders regarding the absence of significant errors. Privately held companies, especially smaller businesses, can find relief in the fact that the costly and […]

Eleven instances where the 10% penalty tax on early withdrawals from an IRA does not apply

In the event of a significant cash shortage, an option you may consider is making an early withdrawal from your traditional IRA—this refers to a withdrawal made before reaching the age of 59½. Traditional IRAs encompass accounts such as simplified employee pension (SEP-IRA) and SIMPLE-IRA for this purpose. The following will help you gain insight […]

Conducting a cost segregation analysis has the potential to reduce your tax liabilities and enhance available cash flow

If your business is spreading the entire construction cost of its facility over a 30-year depreciation period, it’s worth exploring a cost segregation study. This analysis could enable you to expedite depreciation deductions for specific items, leading to potential tax reductions and increased cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period […]

2023 Year End Reporting of Personal Use of Automobiles

As the end of the year fast approaches, we want to remind you of the tax reporting required for personal use of company provided vehicles. Law Fringe benefits provided to an employee are taxable to the employee and must be reported in his/her income unless the law specifically excludes the benefit. This rule includes the […]

Business Valuations – Strategizing for the Future

If the idea of a business appraisal only brings thoughts of retirement or selling your company, think again. A valuation can serve many purposes other than preparing your business for sale so you can head to the beach. Think of it as a checkup that can help you better plan for the future. Strategic planning […]

Tax implications for scholarships

Tuition costs for college is on the rise which is leading to increased scholarship searches. If awarded a scholarship, you may be asking what tax affect this may have for you. Good news: Scholarships (and fellowships) are generally tax-free for students at elementary, middle and high schools, as well as those attending college, graduate school […]

Business Vehicles: rules to know to ensure proper depreciation

Do you currently use a vehicle in your business? If you do you may be able to depreciate the vehicle, however the depreciation rules can be complex and special rules may apply. Depreciation is built into the cents-per-mile rate First, be aware that separate depreciation calculations for a passenger auto only come into play if […]

Trust fund recovery penalty – it may not be what you think

When you hear “trust fund recovery penalty” you likely think it has to do with something like estate planning, but it actually relates to payroll taxes. This penalty holds “responsible persons” accountable for remitting the payroll taxes they withhold from their employees’ wages. A matter of trust The trust fund recovery penalty applies to employees’ […]

What to know before renting out a vacation home

If you are thinking about buying a vacation home in your dream destination but aren’t sure if it is worth the investment, you may consider renting it out to help with the cost. The tax implications of these transactions can be complicated. It depends on how many days the home is rented and your level […]