Advantage of Centralizing Estate & Financial Planning Info

Nobody enjoys disorganization. Think of a grocery store: sure, it can be stressful trying to find that one key ingredient you need for dinner – but imagine if grocery stores just randomly sorted items on their shelves with no labels on the aisles. If that thought made you shudder, think of an even more alarming situation where a loved one dies without having any system or organization for all their important Read More

How The Augusta Rule Really Works

The Augusta Rule is a lesser-known aspect of the tax code that more business owners should be taking advantage of. Whether you’re completely unaware of the rule or simply misunderstanding how it works, we want to put you in a position to get the most out of your money. For the golf fans reading this, yes, the “Augusta” Rule is indeed named after the famed Masters Tournament. More accurately, it’s named after Read More

What’s the Difference Between a Tax Credit and a Tax Deduction?

Tax law can feel like a minefield for even the most knowledgeable business owners. There are innumerable rules and regulations to follow in order to get your returns done correctly. We want to boil down to a few of the basics, looking at tax credits and tax deductions. Last week, we wrote about the Employee Retention Tax Credit which can still be claimed by employers who suffered losses during the pandemic. This Read More

How You Can Get the Employee Retention Tax Credit

While COVID-19 has slipped from the minds of many, the impacts felt by businesses remain very real. It’s been a daunting few years for small businesses especially just to stay afloat. Politicians haven’t provided all the answers for companies, but they’ve helped fill some of these gaps through legislation. Congress created the Employee Retention Tax Credit in March 2020 to reward small businesses for keeping their Read More

What You Need to Know About Tax Basis

If you own a business, your assets may include office equipment, real estate, inventory, stocks and bonds, and intellectual property like copyrights and patents. Over time, their value can go up or down. When you sell any of them (or even your entire business), you want to know what their tax basis is, as that amount can determine whether you owe taxes on the sale or realize a loss you can use to offset other Read More

IRS Utilizing New Technology to Detect Under-Reporting in S Corps

The IRS has shown heightened fervor in detecting and combating under-reporting and compliance issues over the past few years. As such it has taken significant steps to increase the efficacy of its efforts. By taking advantage of new machine learning and big data technology, the IRS has become notably more efficient in detecting and auditing S Corporations that report lower than expected compensation for its officers. Read More

Options for Your Leftover 529 Funds

529 plans, or college savings plans, are a great way to save for a loved one's future education, while also providing the benefits of a tax-advantaged savings plan. Too often, however, those who utilize 529 plans have leftover funds when their student graduates from college. Whether it be due to scholarships or early graduation, when left with funds in a 529 account, many 529 account holders feel that their only Read More

An Overview of the Inflation Reduction Act and Its Changes to the IRS

The Inflation Reduction Act, passed in August of 2022, brought some major changes to how the IRS will operate moving forward. This new law has the potential to make a big impact on business owners, via the addition of both corporate and individual taxes, as well as an increase in IRS funding aimed at shoring up its enforcement efforts. To start, the IRS received several billions of dollars in funding, including Read More

The Real Impact of “Knowledge” in a Purchase Agreement

When two parties enter into a stock or asset purchase agreement, clearly outlining their understanding of the transaction is essential in order to make the deal work. Properly defining “knowledge” in a purchase agreement is one way to accomplish this. By defining terms and providing an understanding of the subject matter of the contract, the parties can garner a better understanding of what to expect in their Read More

Using a Spigot Charitable Remainder Trust to Reduce Income Taxes

If you are interested in controlling when you pay capital gains tax on your assets, a charitable remainder unitrust (CRUT) may be a good option for you. A CRUT allows you to donate assets and receive income from the donated assets for life or a set number of years. After the end of your life or the specified term (up to 20 years), the assets are transferred to a charity of your choice. CRUTs also allow for a "net Read More