2023 1099-K Threshold Reporting
The IRS has announced they are delaying lower 1099-K reporting for another year, but not for credit card transactions. The IRS will treat 2023 as an additional transition year for implementation of the American Rescue Plan Act’s lower 1099-K reporting threshold, but only for third-party network transactions, such as Venmo, PayPal, Apple Pay, online marketplaces, […]
Tax Consequences of Selling a Rental Property
Introduction Selling a rental property can have significant tax implications for property owners. In this blog post, we will explore: how sales of rental properties are taxed differentiate between short-term and long-term capital gains discuss the concepts of depreciation and depreciation recapture emphasize the importance of documenting selling expenses, and introduce the concept of Section […]
How Cost Segregation Studies Benefit Medical and Dental Practices
Introduction For medical and dental practices seeking ways to minimize tax liability and increase cash flow, cost segregation studies offer a valuable strategy. By accelerating depreciation deductions, cost segregation studies can help medical practices optimize their tax savings and improve their financial position. In this blog post, we will explore how cost segregation studies can […]
Can I deduct my clothing on my tax return?
As a taxpayer looking to save money, you may wonder if you can claim deductions for clothing and uniforms on your tax returns. The answer is: it depends. Before you take that deduction, you should consider the nature of the clothing, the job you have, and the type of business you operate. In this blog […]
Do I have to issue a 1099?
The IRS has created several forms in the 1099 series, but this article focuses on the 1099-NEC because it is applicable for so many of our clients. Form 1099-NEC (nonemployee compensation) is an Internal Revenue Service (IRS) form for businesses to report payments made to parties that are not employees. One copy will be provided […]
A New Option for 529 Plan Owners
A 529 plan is a tax-advantaged savings plan designed to help pay for educational expenses. When a parent or grandparent opens a 529 plan, they ensure that their child has the financial support to reach their educational goals. With about 42% of Americans over age 25 holding a college degree, it may seem like a […]
Impact of the 2023 Appropriations Bill on Retirement Savings
In the last week of 2022, President Joe Biden signed into law the Consolidated Appropriations Act of 2023. The $1.7 trillion omnibus spending bill covers a huge range of topics, from spending in support for Ukrainian defense to the social media apps federal employees are allowed to download on their government-issued devices (hint: not TikTok). […]
When does it make sense to convert a Traditional IRA to a Roth IRA?
We all know that contributing to retirement accounts early and often is good advice, but many of our clients question whether it is more beneficial to invest in a traditional IRA or Roth IRA. The answer to this is different for every client and depends upon the expected cash flows during their working years and […]
Captive Insurance
When businesses grow and become more profitable, owners may look for strategies to build cash reserves for the unknown future. Forming a captive insurance company, also called an 831(b) Plan, is one strategy for businesses with excess cash to lower their tax bill in the current year while providing flexibility in future years. A captive […]
Client Gifts
Many business owners like to express their appreciation to clients and referral sources with gifts, especially around the holidays. Understanding IRS rules around gifts can help you show your generosity without creating any surprises at tax time. $25 Limit Businesses may not deduct more than $25 for business gifts made to the same person. For […]
