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The Internal Revenue Service recently announced the inflation adjusted 2025 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on Jan. 1, 2025, the standard mileage rates for the use of a vehicle are: How are 2025 standard mileage rates calculated? The business …
Oh the joy of an oscillating BOI ruling that just may flip again! Remember that rollercoaster ride we all thought was over? Well, buckle up—because the Beneficial Ownership Information (BOI) saga just took another wild turn. An appeals court recently reinstated an injunction that halts BOI enforcement (yes, again). If your head is spinning trying …
Individuals and small businesses should start the year off on the right foot by considering these easy ways to minimize taxes in 2025. Essential Ways to Minimize Taxes in 2025 Make W-4 Updates If you are employed, your employers uses the information on your IRS Form W-4 compared against the IRS’s withholding tables. This allows …
As Baby Boomer business owners approach retirement, planning for the future of their businesses becomes crucial. Succession planning is not just about finding a successor; it’s about ensuring the continuity and success of the business you’ve built. Here’s how you can prepare for a seamless transition. Start Succession Planning Early Initiating the succession planning process …
If you haven’t already heard, the IRS has outlined plans regarding how they are processing Employee Retention Credit claims. The Employee Retention Credit (or ERC) was introduced as a part of the CARES Act in 2020. The credit was designed to help businesses keep employees on their payroll during the pandemic. Specifically it was to …
Unlike employees, who have income, Social Security, and Medicare taxes withheld from their wages, self-employed individuals must prepay their taxes by making periodic estimated tax payments. These are referred to as estimated tax payments because the self-employed individual must estimate his or her net earnings for the year. Then pay taxes per an IRS schedule …
Looking for unique charitable contribution options that can provide tax advantages to the donor? Before deciding about your charitable giving for the year, read this article for ways to contribute that will help you tax-wise. Normally, deductible charitable contributions are limited by a percentage of your income, more specifically your adjusted gross income (AGI). This …
One fundamental financial practice that often gets overlooked, yet is very important, is the idea of separating personal and business finances. There are a wealth of benefits from maintaining distinct bank accounts and credit cards for business transactions. Benefits for small business owners include: Benefits of Separating Personal and Business Finances The intertwining of personal …
The U.S. Department of Labor (DOL) announced on Jan. 9, 2024, the issuance of its final rule regarding whether a worker is an employee or an independent contractor under the federal Fair Labor Standards Act (FLSA). The new rule, which becomes effective March 11, 2024, rescinds the 2021 independent contractor rule issued under former President Donald Trump. …
The practice of separating personal and business finances is a fundamental financial practice that often gets overlooked, yet holds immense importance. By maintaining distinct bank accounts and credit cards for business transactions, small business owners benefit in so multiple ways. These benefits include streamlining bookkeeping processes, ensuring accurate expense tracking, and fostering clarity in financial …
IRC Section 1202, the Qualified Small Business Stock (QSBS) gain exclusion, provides a significant tax planning strategy. Section 1202, also called the Small Business Stock Gains Exclusion, was enacted in 1993 to encourage investment in small businesses. It allows individuals to avoid paying taxes on up to 100% of the taxable gain recognized on the …
Understanding the remote work tax implications is crucial for small and medium-sized businesses (SMBs) to avoid potential penalties and ensure compliance with tax laws. As businesses across a wide range of industries have shifted to a remote model, employees and employers alike have experienced numerous benefits such as reduced overhead costs, increased employee satisfaction, and …
The Internal Revenue Service recently announced the inflation-adjusted 2024 mileage reimbursement rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning Jan. 1, the 2024 mileage reimbursement rates for the use of a car (or a van, pickup or panel truck) are: Business standard mileage rates …
Ready to learn about Beneficial Ownership Information (BOI) Reporting rules that start January 1, 2024? In the ever-evolving landscape of business regulations, the Corporate Transparency Act (CTA), passed as part of the National Defense Authorization Act for Fiscal Year 2021. The Act introduces new reporting requirements for businesses in the United States; specifically focusing on …
Starting Jan. 1, 2024, businesses are required to e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300. Trades and businesses must report cash payments received if all the following criteria is met: To comply …
There has been a vast amount of false employee retention credit claims recently filed. Imagine this: you are a business person relaxing at home after a long day’s work. You’re watching TV and a commercial comes on claiming you can get a tax refund of thousands of dollars. And all you have to do is …
Looking for tips to help boost your success for your gig enterprise? You’re not alone! According to one recent study, workers who make up the “gig economy” contributed roughly 5.7% to the gross domestic product of the United States in 2021 alone. This growth signifies a significant shift in the way that we all collectively …
S corporation requirements, specifically those regarding reasonable compensation, are often misunderstood and abused by owner-shareholders. An S corporation is a type of business structure in which the business does not pay income tax at the corporate level and instead distributes (passes through) the income, gains, losses, and deductions to the shareholders for inclusion on their …
Checking the mileage rates for 2023? This article discusses each of the standard mileage rates for 2023 and how they apply. The Internal Revenue Service recently announced the inflation-adjusted 2023 optional standard mileage rates. These rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning …
Individuals and small businesses should consider various ways of starting off on the right foot for the 2023 tax year. While the list below is a great start, the most important of these actions is keeping timely and accurate tax records. Top Considerations for Starting the 2023 Tax Year Right W-4 Updates Employed? If so, …
Individuals are always looking for a tax deduction that can reduce their tax liability. But what is the actual tax benefit derived from a tax deduction? There is no straightforward answer. Some deductions are “above the line” while others must be itemized. Some tax deductions must exceed a threshold amount before being deductible. Then there …
Business tax filing deadlines aren’t on holiday, so don’t forget to file worker 1099s. If you use workers other than employees to perform services for your business and pay them $600 or more for the year, you are required to issue each one a Form 1099-NEC to avoid facing the loss of the deduction for …
If you are you an individual who has received over $600 from any single customer last year, you may receive IRS form 1099-ks for sales. The IRS reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K if they have received more than $600 for the year. IRS form …
Here are 5 essential Quickbooks Online tasks to do before the end of the year slips by. For many, December is a month of the year that goes by in warp speed. It seems like you’ve just finished Thanksgiving dinner and it’s time to ring in the New Year! You could probably spend the entire …
