You may think you do not need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you are married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process […]
Working capital — the funds your company has tied up in accounts receivable, accounts payable and inventory — is a critical performance metric. During times of rising inflation and interest rates, managers search for ways to free up cash and eliminate waste. However, determining the optimal amount of working capital can sometimes be challenging. Balancing […]
It can be challenging to keep track of which accounting rules are changing, when the changes kick in and for which types of entities. Plus, implementing the necessary revisions to your organization’s procedures and systems often takes time and resources. Here are five updates that go live for certain entities this year. 1. Targeted improvements […]
Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That is understandable because your 2022 individual tax return is due to be filed soon (unless you file an extension). However, it is a good time to familiarize yourself with tax amounts that may have […]
If you are a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for […]
Historical financial results are only relevant in a valuation to the extent that the business expects to achieve similar results in the coming years. When projecting future economic benefits, it is important to consider expected changes to a subject company’s internal and external conditions. Challenging the status quo The last three to five years of […]
CPA firms do more than audits and tax returns. They can also help you with everyday accounting-related tasks, such as bookkeeping, budgeting, payroll and sales tax filings. Should your organization outsource its accounting needs? Here are five potential advantages to consider when evaluating this decision. 1. Professional advice. Outsourcing to an experienced CPA firm provides […]
The IRS announced it opened the 2023 individual income tax return filing season on January 23. That is when the agency began accepting and processing 2022 tax year returns. Even if you typically do not file until much closer to the mid-April deadline (or you file for an extension), consider filing earlier this year. The […]
Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes to […]
If you have a child or grandchild who is going to attend college in the future, you have probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two […]