• Claiming a theft loss deduction if your business is the victim of embezzlement

    A business may be able to claim a federal income tax deduction for a theft loss. But does embezzlement count as theft? In most cases it does but you’ll have to substantiate the loss. A recent U.S. Tax Court decision illustrates how that’s sometimes difficult to do. Basic rules for theft losses  The tax code allows a deduction for losses sustained during the taxable year [...]

    Published On: October 13, 2021Categories: Featured, Small Business Tax
  • Vacation home: How is your tax bill affected if you rent it out?

    If you’re fortunate enough to own a vacation home, you may want to rent it out for part of the year. What are the tax consequences? The tax treatment can be complex. It depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by you, your relatives (even if you charge them market rent) and use by [...]

    Published On: October 13, 2021Categories: Featured, Individual Tax
  • Navigating the tax landscape when donating works of art to charity

    If you own a valuable piece of art, or other property, you may wonder how much of a tax deduction you could get by donating it to charity. The answer to that question can be complex because several different tax rules may come into play with such contributions. A charitable contribution of a work of art is subject to reduction if the charity’s use of [...]

    Published On: October 12, 2021Categories: Featured, Individual Tax
  • 2021 Q4 tax calendar: Key deadlines for businesses and other employers

    Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: Certain tax-filing and tax-payment deadlines may be postponed for taxpayers [...]

    Published On: October 12, 2021Categories: Featured, Small Business Tax
  • 10 financial statement areas to watch for COVID-related effects

    The COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the effects of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply with U.S. Generally Accepted Accounting Principles only at year end. [...]

    Published On: October 12, 2021Categories: Business, Featured
  • Associations should prioritize common interests, not individual services

    Watch out, nonprofit trade associations! If your group is a 501(c)(6) organization, your activities could potentially threaten your tax-exempt status. To ensure you’re in compliance with IRS rules, you need to routinely review your member offerings and any business you might conduct. Support common interests Trade associations exist to promote their members’ common interests and improve business conditions or “one or more lines of interest.” [...]

    Published On: October 8, 2021Categories: Featured, Not for Profit
  • The tax score of winning

    Studies have found that more people are engaging in online gambling and sports betting since the pandemic began. And there are still more traditional ways to gamble and play the lottery. If you’re lucky enough to win, be aware that tax consequences go along with your good fortune. Review the tax rules Whether you win online, at a casino, a bingo hall, a fantasy sports [...]

    Published On: October 7, 2021Categories: Featured, Individual Tax
  • Is a Health Savings Account right for you?

    Given the escalating cost of health care, there may be a more cost-effective way to pay for it. For eligible individuals, a Health Savings Account (HSA) offers a tax-favorable way to set aside funds (or have an employer do so) to meet future medical needs. Here are the main tax benefits: Contributions made to an HSA are deductible, within limits, Earnings on the funds in [...]

    Published On: October 6, 2021Categories: Featured, Individual Tax
  • Flash reports: Real-time financial reporting

    Timely financial reporting is key to making informed business decisions. Managers need to know what’s in the pipeline to respond promptly and decisively. Unfortunately, it typically takes several weeks to prepare financial statements under U.S. Generally Accepted Accounting Principles (GAAP). And many companies only produce GAAP financials at the end of the quarter or year. In the meantime, managers may turn their attention to simple [...]

    Published On: October 5, 2021Categories: Business, Featured
  • Is it time to upgrade your accounting system?

    Timely financial data is key to making informed business decisions. Unfortunately, it’s common for managers to struggle with their companies’ accounting systems to get the information they need, when they need it. Often, it takes multiple, confusing steps to enter and extract data specific to customers and/or projects. Businesses and accounting software solutions evolve over time. So, what worked for your company years ago may [...]

    Published On: October 4, 2021Categories: Business, Featured
  • Related-party transactions draw attention from auditors

    Related-party transactions and financial connections are a normal part of operating a business. But these arrangements have gotten a bad rap because dishonest people sometimes use them to disguise poor performance or dishonest activities. So, identifying related parties and evaluating your interactions with them are important parts of the external audit process — especially in today’s volatile market conditions. Accounting definition In an accounting context, [...]

    Published On: October 1, 2021Categories: Business, Featured
  • Getting a divorce? Be aware of tax implications if you own a business

    If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, between you and your soon-to-be ex-spouse without any federal income [...]

    Published On: September 18, 2021Categories: Featured, Small Business Tax
  • Even nonprofits can benefit from AI technology

    You might think that artificial intelligence (AI) is just about using computers to perform complex tasks that otherwise would require human intelligence. That’s part of AI. But several technologies fall under the AI umbrella, including machine learning, natural language processing (NLP) and robotic process automation. Here’s how tools such as these can help nonprofits cut costs and achieve mission-critical objectives. Offering more The term “AI” [...]

    Published On: September 17, 2021Categories: Featured, Not for Profit
  • Give your staffers a break with an accountable plan

    Accountable plans reimburse employees for work-related expenses free of federal income and employment taxes. So reimbursement payments aren’t subject to withholding from staffers’ paychecks. Your not-for-profit also benefits because the reimbursements aren’t subject to the employer’s portion of federal employment taxes. Most prospective employees probably won’t accept a job based on the availability of an accountable plan. But offering one can help you retain valuable [...]

    Published On: September 16, 2021Categories: Featured, Not for Profit