Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses are not deductible through 2025 if they are considered investment expenses for the production of income. However, they are deductible if they are considered trade or business expenses. For […]
Without trust between you and your employees, your business probably would not be very successful. Delegating responsibility, sharing ideas, working as a team — all require a certain level of trust. However, too much trust can lead to occupational fraud and conflicts of interest. To maintain the proper balance, establish a policy that outlines your […]
Married couples may not be able to save as much as they need for retirement when one spouse does not work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there is an exception […]
As mitigation measures related to COVID-19 ease, it will be interesting to see which practices and regulatory changes taken in response to the pandemic remain in place long-term. One of them might be relief from a sometimes-inconvenient requirement related to the administration of 401(k) plans. A virtual solution In IRS Notice 2021-40, the […]
A dangerous assumption that many business owners make is that, if their companies are profitable, their cash flow must also be strong. However, this is not always the case. Taking a closer look at the accounting involved can provide an explanation. Investing in the business What are profits, really? In accounting terms, they are closely […]
In recent years, the accounting rules for certain balance sheet items have transitioned from historical cost to “fair value.” Examples of assets that may currently be reported at fair value are asset retirement obligations, derivatives and intangible assets acquired in a business combination. Though fair value may better align your company’s financial statements with today’s […]
For many business owners, putting together a succession plan may seem like an overwhelming task. It might even seem unnecessary for those who are relatively young and do not intend to give up ownership anytime soon. However, if the past year or so have taught us anything, it is that anything can happen. Owners who […]
Fraud perpetrators take whatever they can get their hands on. However, they generally prefer cash because it is virtually untraceable. Fortunately, fraud experts have the expertise and tools to trace even cash-based theft. Multiple opportunities According to the Association of Certified Fraud Examiners, there are three main categories of cash fraud, which includes checks because […]
If you are a parent with a college-bound child, you may be concerned about being able to fund future tuition and other higher education costs. You want to take maximum advantage of tax benefits to minimize your expenses. Here are some possible options. Savings bonds Series EE U.S. savings bonds offer two tax-saving opportunities for […]
If you are getting ready to retire, you will soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here is a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your […]