Insights
Investing in real estate is widely recognized as one of the most effective strategies for building long-term wealth. It provides a tangible asset that not only serves as a portfolio diversifier but also tends to move independently of the volatility in the stock and bond markets. However, for many investors, the idea of purchasing and…
Read MoreIf your business rewards your team’s performance with bonuses, there are tax implications to understand. You can generally deduct the cost of bonuses as compensation for services. If you use cash-method accounting, remember that you can only deduct bonuses paid by the end of the tax year to have them deductible that year. Accrual-method businesses benefit…
Read MoreDeciding to onboard a freelancer, also known as an independent contractor, requires understanding the tax and financial implications. Following are some considerations as you determine what works best for your business. What to expect when you hire an employee (W-2) You will be responsible for withholding taxes from the employee’s paychecks: Federal and State income…
Read MoreBusiness Tax Account Gives Business Taxpayers New Options for Making Payments Easier
The IRS’s Business Tax Account (BTA) is an online self-service tool designed to help business taxpayers manage their tax responsibilities efficiently. BTA, launched last fall, is an important part of a wide-ranging initiative to reduce paper-based processes that hamper the IRS and frustrate taxpayers. The BTA aims to simplify tax management for businesses by providing…
IRS Issues New FAQs on Educational Assistance Programs
With the new academic year approaching, the IRS recently issued timely guidance on employer-sponsored educational assistance programs under Section 127. The “frequently asked questions” (FAQs) fact sheet provides information on the tax treatment and benefits available to employees and employers. As an invaluable recruiting and retention tool, these programs offer significant tax advantages by allowing…
New Guidance for Organizations Receiving Federal Assistance Effective October 1, 2024
If your organization receives federal assistance, the Office of Management and Budget (OMB) has released updated regulations you need to be aware of. The 2024 updates to the Uniform Guidance, effective October 1, 2024, introduce several important changes to the requirements for single audits. Here are the key points: These revisions are part of an…
What You Need to Know: Are Political Contributions Tax Deductible?
The short answer is no. Donations made to political organizations or political candidates are not tax-deductible. The IRS makes clear that expenditures for lobbying and political expenditures incurred with “influencing legislations, participating or intervening in any political campaign on behalf of (or in opposition to) any candidate for public office, attempting to influence the general public…
Inheriting Property: Navigating the Maze of Inheritance Tax
Whether it’s a cherished family home, vacation house, or a portfolio of investment properties, inheriting property often precipitates unexpected financial responsibilities. Understanding the nuances of estate and inheritance tax well in advance of property acquisition is essential to mitigate potential financial burdens. Too often, estate planning can be an afterthought, prompting a complex and stressful…
Final Regulations Issued: Reporting Sales and Exchanges of Digital Assets
The US Department of the Treasury and the IRS have issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These digital asset transactions are already subject to tax. These final regulations, that implement reporting requirements of the Infrastructure Investment and Jobs Act enacted in 2021, require brokers to…