Overview of the offsetting rules

As companies explore hedging strategies in today’s uncertain economy, management might need to become familiar with the accounting rules for offsetting. Here are the basics, including what needs to be disclosed in your footnotes about these contractual arrangements. Right of setoff In general, it’s not proper to offset assets and liabilities in the balance sheet […]

The annual gift tax exclusion

One of the most effective estate-tax-saving techniques is also one of the simplest: making use of the annual gift tax exclusion. It allows you to give to an unlimited number of family or friends cash or property valued up to a “specified” amount each year without owing gift tax. That “specified” amount is subject to […]

The 2024 standard deduction

The standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed. The Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction for those who don’t itemize deductions. The amounts are indexed annually for inflation through 2025, after which they’re scheduled to drop back to the amounts […]

4 year-end tax moves for businesses

How High Are State and Local Tax Collections in Your State?

How High Are State and Local Tax Collections in Your State? https://bit.ly/3G9rTA3

Hiring? Your business may qualify for tax credits

Employers that are looking to hire new workers may be able to reduce their tax bills with a valuable one-time federal tax credit. The Work Opportunity Tax Credit (WOTC) encourages employers to hire from certain groups that face barriers to employment. The targeted groups include veterans, qualified recipients of certain aid programs, ex-felons, qualified long-term […]

You may qualify for an adoption tax credit

Adopting a child can be expensive. Fortunately, there may be tax benefits to help adoptive parents defray some of the costs. For 2023, a credit of up to $15,950 ($16,810 for 2024) is available for qualified expenses, with phaseouts for higher-income parents. The credit is nonrefundable, which means it’s limited to your tax liability. But […]

The 2024 cost-of-living adjustment numbers have been released: How do they affect your year-end tax planning?

The IRS recently issued its 2024 cost-of-living adjustments for more than 60 tax provisions. With inflation moderating slightly this year over last, many amounts will increase over 2023 amounts but not as much as in the previous year. As you implement 2023 year-end tax planning strategies, be sure to take these 2024 adjustments into account. […]

For a tax deduction, what is ordinary and necessary?

Taxpayers can generally deduct the ordinary and necessary costs to run a business if they can prove them. Records of vehicle costs must be contemporaneous and detailed. One taxpayer filed two Schedule C business returns, one for computer consulting, which showed a profit. The other was for construction, and resulted in a net loss, mostly […]

Happy Thanksgiving

“Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be.” –George Washington’s Thanksgiving Proclamation, October 3, […]