Three tax breaks for small businesses

Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. 1. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available to eligible individuals, trusts and estates. But it’s not available to C corporations or […]

Bill introduced to decriminalize cannabis

Could cannabis be decriminalized at the federal level? U.S. Senate Democrats have introduced a bill to remove it from the controlled-substances list. If passed, a ban would be lifted, which now prohibits businesses from deducting expenses related to cannabis production in states where the drug is legal. The Cannabis Administration and Opportunity Act would impose […]

How to avoid the early withdrawal tax penalty on IRA distributions

When you take withdrawals from your traditional IRA, you probably know that they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money. Important: Once you reach a certain age, you must start taking required minimum distributions […]

Students and Staff at Educational Institutions Beware!

Students and staff at educational institutions, beware. An IRS impersonation scam continues to target schools, including people with “.edu” email addresses. This applies to public, private and nonprofit schools. The suspect emails display the IRS logo and may refer to a “tax refund” in the subject line. The sender then tells recipients that, to claim […]

How to account for collaborative agreements

Today, many companies share research or technology to develop new products. For example, manufacturers might enter into a joint venture to conduct scientific research to design a new medical device. Or a watchdog group might work with a production company to create and distribute a documentary film. How revenue and other payments between the parties […]

House votes to increase IRS funding

Much improvement is needed at the IRS and the U.S. Treasury Dept. That’s why on July 20th, the U.S. House of Representatives approved adding an extra $1 billion to the revenue agency’s fiscal year 2023 budget. The bill from the House Appropriations Committee would raise IRS funding to $13.6 billion. Some of the increase will […]

Low Income Housing Credit Improvement Act

It’s no secret that many U.S. cities are experiencing affordable housing crises. A recent Congressional hearing considered several proposals to address the shortage of inexpensive rental units, including the Affordable Housing Credit Improvement Act. Sponsored by Senator Maria Cantwell (D-WA), the bill would enlarge the low-income housing tax credit (LIHTC), expand eligibility for it and […]

Should you buy a franchise?

CHIPS Act

Bipartisan support in Congress for a (limited) tax bill? It’s true! The pared-down CHIPS Act that would provide tax credits for companies to invest in semiconductor manufacturing has support from lawmakers in both parties. The $50 billion bill would provide a 25% tax credit for U.S. businesses that invest in chip-making as well as the […]

Individual Tax returns on extension are due October 17

If you’re one of the estimated 19 million taxpayers who’ve requested an extension to file their 2021 tax return, the filing deadline is Oct. 17. The IRS is reminding those taxpayers that they don’t have to wait until mid-October to file. If you have all the necessary information to file a return, contact us or […]