How to minimize the S corporation LIFO recapture tax

If you’re considering converting your C corporation to an S corporation, be aware that there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. That’s because of the LIFO recapture income that will be triggered by converting to S corporation status. We can meet to compute what the […]

Secure 2.0 makes changes to ABLE accounts

The new SECURE 2.0 law makes a favorable change to Achieving a Better Life Experience (ABLE) accounts, although it doesn’t kick in for a few years. Tax-exempt ABLE programs are established by states to help individuals with disabilities. Before the new law, in order to be the beneficiary of an ABLE account, an individual’s disability […]

Renting to a relative? Watch out for tax traps

If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating […]

IRS issues 2023 Mileage Rates

The IRS has issued the 2023 optional cents-per-mile rates used to calculate the tax deductible costs of operating a vehicle. Effective Jan. 1, 2023, the standard mileage rate for the business use of a car (including vans, pickups, and panel trucks) is 65.5 cents per mile. (This is up from 58.5 cents per mile for […]

Key tax and retirement provisions in the Secure 2.0 Act

Key tax and retirement provisions in the Secure 2.0 Act – Journal of Accountancy https://bit.ly/3GEWGWA

Secure 2.0 increases Small Business credit for retirement plan

SECURE 2.0 builds on the provisions of the original SECURE Act by addressing a wide array of areas that make major changes to retirement planning. To incentivize small businesses to establish retirement plans, the new law creates or enhances some tax credits. For example, it increases the startup credit from 50% to 100% of administrative […]

What happened to the international convergence project?

For years, there was talk of converging U.S. Generally Accepted Accounting Principles (GAAP) with the International Financial Reporting Standards (IFRS). While the formal convergence project lost steam about a decade ago, Financial Accounting Standards Board (FASB) Chair Richard Jones assured stakeholders at a recent Financial Accounting Foundation meeting that convergence discussions are still regularly taking […]

Syndicated conservation easements impacted by Consolidated Appropriations Act

A new law affecting conservation easements was included in the Consolidated Appropriations Act. Dubbed the Conservation Easement Program Integrity Act, it aims to address taxpayers who have twisted the tax law to develop abusive “syndicated” conservation easements. They use inflated appraisals and partnership arrangements to reap “grossly inflated” deductions. Previously, taxpayers could claim charitable deductions […]

Secure Act changes charitable gift from retirement plan and IRAs

Making qualified charitable distributions (QCDs) is one way for older taxpayers to satisfy their IRA or other qualified plan’s required minimum distributions (RMDs). This is an especially attractive option if you’re philanthropically minded. With a QCD, you can distribute up to $100,000 per year directly to a 501(c)(3) charity after turning age 70½. While you […]

Secure Act changes contributions to retirement plans

The SECURE 2.0 Act, which Congress recently passed, contains a provision that will allow larger “catch-up” contributions to certain retirement plans. Defined contribution retirement plans are permitted, but not required, to allow participants age 50 or older to make additional catch-up contributions. For 2023, the 401(k) plan catch-up contribution amount is $7,500 and the SIMPLE […]