When you put your hard-earned money into a big expenditure, you hope to get great value out of it over time. Of course, you will generally accomplish this in a practical way, but the value of most assets will also depreciate (lose value) over time. This prevents you from buying, using, and flipping most assets for the same value you paid in the beginning. That’s where depreciation from the tax basis of the asset, Read More

A home holds incalculable value to a family. It’s a place to grow together and make countless memories. It can also be significantly valuable if you rent your home out in the future, or you own rental real estate. Capital assets of your business also hold tremendous value. Unfortunately, the IRS will require you to have a clear understanding of the value of these assets and other properties you own. Above all Read More

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

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

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

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

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

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

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

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