Tracking Percentage of business use of assets

If you’re a business owner hoping to deduct asset depreciation from your gross income, it’s crucial to track the percentage of business use of assets. In one case, a married couple were long-time farmers. They deducted large amounts of depreciation on farm equipment and vehicles over several years, but they failed to track the business […]

Budget work continues

As both houses of Congress continue to work toward agreement on a funding bill covering fiscal 2023, they approved a one-week short-term funding extension on Dec. 15. This continuing resolution (CR) keeps the government funded until Dec. 23, giving Congress more time to pass an omnibus bill, which requires agreement on 12 separate bills. Some […]

Deferred Social Security Tax is Due

If you own a business or are self employed and you deferred part of your Social Security tax in 2020, the second installment of the deferred amount is due Dec. 31, 2022. To pay, you can use the Electronic Federal Tax Payment System (EFTPS.gov). On the “type of tax” screen, choose “Deferred Social Security Tax” […]

How to report software costs

What do Tesla cars, smart TVs and equipment used for making french fries have in common? The answer is embedded software, according to recent comments by Financial Accounting Standards Board (FASB) Vice Chair James Kroeker. He also told the Private Company Council that today’s mixed accounting model for software costs is outdated and should be […]

Supreme Court takes up IRS collection notification issue

Must the IRS notify third parties when it summons bank records in an effort to collect a person’s unpaid taxes? Several circuit courts are divided over the issue and the U.S. Supreme Court has agreed to take it up. The Court will decide whether the IRS need only notify third parties if a delinquent taxpayer […]

IRS issues RMD reminder

The IRS is reminding those who were born in 1950 or earlier that they must soon begin taking required minimum distribution (RMDs) from their IRAs or other retirement plan accounts. Generally, RMDs are the minimum amounts that IRA and retirement plan account owners age 72 and older must annually withdraw from their accounts. Depending on […]

Deducting business startup costs

A reminder of the big one

New Madrid community stays prepared 211 years after earthquake sequence – KFVS https://bit.ly/3PGgWKn

Newlywed Checklist

Did you or someone you know get married in 2022? The IRS has provided a checklist to help newlyweds avoid mistakes that could cost them at tax time. How you file depends on your marital status on Dec. 31. The married-filing-jointly status is typically the most beneficial way for couples to file, but it’s a […]

Coaching salaries in the news

Should tax-exempt universities be allowed to pay athletic coaches multi-million-dollar salaries? That was the focus of an investigation led by Rep. Bill Pascrell (D-NJ), chair of the U.S. House Ways and Means Oversight Committee. With input from nine schools, a report was issued on Dec.1, 2022, in which Pascrell casts doubt on whether these salaries […]