Taking the opposite approach: Ways your business can accelerate taxable income and defer deductions

Typically, businesses want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it prudent to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. There have been discussions in Washington about raising the corporate federal […]

Crypto Reporting

Cryptocurrency and nonfungible tokens (NFTs) are far from interchangeable from a tax perspective. A lack of IRS guidance has left tax experts to speculate on the nuances of how various digital assets may be treated. NFTs are cryptographic tokens that exist on a blockchain. They can represent real world items, such as real estate or […]

Bill to Increase Retirement Savings Opportunities

The Securing a Strong Retirement Act, a bipartisan bill intended to increase retirement savings and simplify retirement plan rules, is set to receive a full vote by the U.S. House of Representatives the week of March 28. It’s often referred to as SECURE 2.0, which references the 2019 SECURE Act that made numerous retirement plan […]

The tax rules of renting out a vacation property

Summer is just around the corner. If you’re fortunate enough to own a vacation home, you may wonder about the tax consequences of renting it out for part of the year. The tax treatment depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by your relatives […]

Reporting Threshold Decreased

A law passed last year lowered the reporting threshold for gig workers and others who receive certain types of payments from $20,000 to $600. According to taxpayer groups and lawmakers, that change has harmed both taxpayers and the IRS. The reduced threshold may result in a deluge of Forms 1099-K from confused online sellers being […]

Crowdfunding

Using websites such as GoFundMe or Kickstarter is an easy way to raise money over the internet from a large group of people. Often referred to as “crowdfunding,” it may be used to fund business ideas, help families pay medical bills or raise money for charity. Bear in mind that the income raised by crowdfunding […]

Eyes on related parties

Business transactions with related parties — such as friends, relatives, parent companies, subsidiaries and affiliated entities — may sometimes happen at above- or below-market rates. This can be misleading to people who rely on your company’s financial statements, because undisclosed related-party transactions may skew the company’s true financial results. The hunt for related parties Given […]

The Employer-Provided Child Tax Credit

A recent Government Accountability Office (GAO) report confirms that the Employer-Provided Child Tax Credit can financially benefit employers and employees. The statutorily mandated review drilled down on several subjects, including the tax implications for employer-provided child care, characteristics of employers claiming the credit, challenges employers face in offering it and benefits eligible employees receive. Overall, […]

There’s a deduction for student loan interest … but do you qualify for it?

If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. The answer is yes, subject to certain limits. The maximum amount of student loan interest you can deduct each year is $2,500. Unfortunately, the deduction is phased out if your […]

The burden of credit card debt