Have You Considered A Cost Segregation Study?
Because of the economic impact of inflation, many companies may need to conserve cash and not buy much equipment. As a result, you may not be able to claim as many depreciation tax deductions as in the past. However, if your company owns real property, there may be another approach to depreciation to consider: a […]
What’s Your Taxpayer Filing Status?
For many people, December 31 means a New Year’s Eve celebration. However, from a tax perspective, it’s a key date in determining the filing status you’ll use when filing your tax return for the year. The one you’ll use depends partly on whether you’re married on that date. The five statuses When you file your […]
Selling Trade Or Business Property? Know The Tax Effects
Many rules can potentially apply to the sale of business property, but what are the tax consequences? For simplicity, let’s assume that the property you want to sell is depreciable property used in your business and you’ve held it for more than one year. General rules Under the Internal Revenue Code, your gains and losses […]
Year-end Gifts And The Gift Tax Annual Exclusion
With the holidays and year-end approaching, you might be considering making gifts of stock or cash to family members and other loved ones. By using your gift tax annual exclusion, those gifts can reduce the size of your taxable estate. For 2022, the annual exclusion is $16,000. The exclusion will increase to $17,000 for 2023. […]
Internal Controls Reduce Check Kiting Risk
A check kiting scheme relies on “float” time, which is the period between when a check is deposited and when the bank collects the funds on the check. In recent years, the float time has narrowed, but there’s still opportunity to capitalize on that delay. So it’s important for businesses to put internal controls in […]
Beware of “Wash Sales” When Selling Securities
If you’re planning to sell stock or other securities at a loss to offset gains you realized earlier in the year, beware of the “wash sale” rule. It comes into play when an investor wants to realize a loss on a security for tax purposes while continuing to invest in the security. Under the wash […]
Large Cash Business Transactions Must Be Reported To The IRS
If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS. Here are some details. The requirements Each person who, while operating a trade or business, receives more than $10,000 in cash in one transaction (or at least two related transactions), must file Form […]
Offset Nursing Home Costs With Possible Tax Breaks
If you have a parent entering a nursing home, taxes are probably the last thing on your mind. But you should know that several tax breaks may be available to help offset some of the costs. Medical expense deductions The costs of qualified long-term care (LTC), such as nursing home care, may be deductible as […]
Too Much Inventory At Your Business? Trim the Fat!
Businesses need to have inventory on hand. But having excess inventory is expensive, so it’s important to keep it as lean as possible. Here are some ways to trim the fat from your inventory without compromising revenue and customer service. Accuracy first Effective inventory management starts with an accurate physical inventory count. This allows you […]
When Is Employer-provided Life Insurance Taxable?
If your employee benefits include group term life insurance paid by your employer, a portion of the premiums paid for the coverage may be taxable. Depending on the amount of coverage you’re provided, some of it may create undesirable income tax consequences for you. The cost of the first $50,000 of group term life insurance […]