Abstract: Running a business requires that strong, supportable records be kept. Every expense that appears on a tax return might have to be defended if the IRS decides to audit the return. And failing to operate in a businesslike manner and keep good records might...
Right now, taxpayers may be more concerned about their 2022 tax bills than about how to handle their personal finances in the new year. However, as they deal with their annual tax filing, it’s a good idea to also familiarize themselves with pertinent tax-related amounts...
Many perpetrators of investment fraud know how to push the right psychological buttons to entice their “marks” to buy worthless or nonexistent securities. Would-be investors can mitigate the risks by asking a few questions, performing some research and consulting with trusted advisors. ...
Generally, the term “leakage” has negative connotations. So, it’s not surprising that the same is true in the context of retirement planning, where leakage refers to pre-retirement early withdrawals from a retirement account. A business owner who sponsors a qualified retirement plan might say, “Well,...
January 17 – Individual taxpayers’ final 2022 estimated tax payment is due. January 31 – Employers must file 2022 Forms W-2 (“Wage and Tax Statement”) with the Social Security Administration and provide copies to their employees. Employers must file (paper or electronic) 2022 Forms 1099-NEC (“Nonemployee...
The IRS generally begins accepting the previous year’s individual tax returns in late January. So, it’s time for taxpayers to start thinking about getting their tax returns prepared. Here are quick tips taxpayers can use to speed tax processing and avoid hassles....
Estate planning isn’t just about what happens to a person’s assets after death. It’s also about protecting one’s family during his or her lifetime. This article discusses two estate planning documents that are essential for everyone: a living will and a health care power of...
Because of the economic impact of inflation, many companies may need to conserve cash and not buy much equipment this year. As a result, the business may not be able to claim as many depreciation tax deductions as in the past. However, if the company...
Nonqualified deferred compensation (NQDC) plans allow participants to set aside large amounts of tax-deferred compensation, but they may also pose substantial risks. This article distinguishes NQDC plans from qualified defined contribution plans and discusses the pluses and minuses....
For many people, December 31 means a New Year’s Eve celebration. However, from a tax perspective, it means thinking about the filing status you’ll use when filing your tax return for the year. The one you use depends partly on whether you’re married on that...
Employers may want to explore the benefits of providing Health Savings Accounts (HSAs) to their workforce. When coupled with a high-deductible health plan, an HSA can be a powerful tool for funding medical expenses on a tax-advantaged basis. This brief article outlines the advantages and...
Many people are traveling again, for business and for pleasure. But as travel demand increases, so does travel-related fraud. This article describes how scam artists seek to use phone calls, emails and other means to take advantage of travelers — and offers tips to help...
The sale of business or trade property can be subject to many rules, depending on the details. Factors that affect the taxability of the sale include the type of property, the primary use and how long the property was held. This article gives a rundown...
Many people want to make gifts of cash and stocks to loved ones during the holidays and at year-end. If properly used, the annual exclusion allows you to give to family members and loved ones and reduce the size of your taxable estate, within limits....
What are the tax implications when a taxpayer who owns a vacation home rents it out? The answer depends on various factors, such as the amount of time rented out and the number of days used by the owner. The calculation of taxable income can...
Despite the business community’s rapid adoption of digital payment methods, some companies continue to rely on paper checks. But there’s a long-standing problem with checks: They make businesses vulnerable to several damaging types of fraud, including check kiting. This article describes how a check kiting...
Under the “wash sale” tax rule, if a taxpayer sells stock or securities for a loss and buys back substantially identical stock or securities within the 30-day period before or after the sale date, that loss can’t be claimed for tax purposes. This article provides...
The “sandwich generation” includes people who are caught between caring for their aging parents and still raising or helping their children. This brief article encourages those in the middle part of the sandwich to initiate family discussions with the other two parts to discuss tax...
October 17 – Personal federal income tax returns for 2021 that received an automatic extension must be filed today and any tax, interest and penalties due must be paid. The Financial Crimes Enforcement Network (FinCEN) Form 114 “Report of Foreign Bank and Financial Accounts” (also...
Long-term care — including nursing home care — is expensive. Generally, tax issues aren’t top of mind when someone enters a nursing home. But for those who pay the bills, there may be tax breaks that help offset the cost, such as the ability to...
When businesses receive large amounts of cash or cash equivalents, they may be required to report these transactions to the IRS. Specifically, a payment of more than $10,000 cash in one or more related transactions must be reported on a specific form. Although not all...
Dividing a marital estate is rarely easy. But it’s made much harder if a divorcing spouse owns a private business and attempts to deflate profits or hide assets. Divorcing spouses — or their attorneys — who suspect this type of deception should engage a forensic...
When taxpayers have seriously delinquent tax debt (SDTD), they may face more than financial consequences. That is, the IRS may revoke or limit their passports. How is SDTD defined? In 2022, an unpaid tax bill becomes an SDTD when the assessed federal tax liability exceeds...
Employer-provided life insurance can be a great benefit, with the cost of part of it excluded from an employee’s taxable income. Participating employees need to be aware that this exclusion only applies to the first $50,000 in coverage, and the employer-paid cost of the excess...
Traditionally, important tax and financial records have been stored as hard copies in desk drawers, filing cabinets and safe deposit boxes. These days, it has become increasingly popular and easy to digitize documents and store them electronically. This article explores the advantages and risks of...
Inventory is expensive, so it needs to be as lean as possible without compromising revenue and customer service. This article provides some suggestions to help businesses trim the fat from inventory and some useful inventory ratios for benchmarking and evaluating product mix....
A good family budget should be simple yet comprehensive. As this brief article explains, this objective can be accomplished by addressing both the near term (such as day-to-day items) and the long term (such as college education and retirement)....
Business owners may be wondering whether alternative energy technologies can help them manage their business energy costs. A valuable federal income tax benefit — in the form of a business energy credit — applies to the acquisition of many types of alternative energy property. The...
Individuals who plan to transfer real estate, a family business or other assets that are expected to appreciate dramatically in the future may want to consider an installment sale. This option may provide benefits, including the ability to freeze asset values for estate tax purposes...
When teachers are setting up their classrooms for the new school year, it’s not uncommon for them to pay for a portion of their classroom supplies out-of-pocket. A special tax provision allows them to recoup some of the cost at tax time. In light...
