• Launching a small business? Here are some tax considerations

    While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating with that entity. The pass-through deduction To the extent your business generates qualified business income (QBI), you’re eligible to claim the pass-through or QBI deduction, [...]

    Published On: March 13, 2021Categories: Featured, Small Business Tax
  • Rebuilding your nonprofit’s operating reserves

    Events of the past year put a dent in many not-for-profit’s reserves. Perhaps you tapped this stash to buy personal protective equipment or to pay staffers’ salaries when your budget no longer proved adequate. As the pandemic wanes and economic conditions improve, you’ll need to start thinking about rebuilding your operating reserves. Back on steady ground Assembling an adequate operating reserve takes time and should [...]

    Published On: March 12, 2021Categories: Featured, Not for Profit
  • Estimated tax payments: The deadline for the first 2021 installment is coming ups

    April 15 is not only the deadline for filing your 2020 tax return, it’s also the deadline for the first quarterly estimated tax payment for 2021, if you’re required to make one. You may have to make estimated tax payments if you receive interest, dividends, alimony, self-employment income, capital gains, prize money or other income. If you don’t pay enough tax during the year through [...]

    Published On: March 11, 2021Categories: Featured, Individual Tax
  • Retiring soon? Recent law changes may have an impact on your retirement savings

    If you’re approaching retirement, you probably want to ensure the money you’ve saved in retirement plans lasts as long as possible. If so, be aware that a law was recently enacted that makes significant changes to retirement accounts. The SECURE Act, which was signed into law in late 2019, made a number of changes of interest to those nearing retirement. You can keep making traditional [...]

    Published On: March 10, 2021Categories: Featured, Individual Tax
  • How to compute your company’s breakeven point

    Breakeven analysis can be useful when investing in new equipment, launching a new product or analyzing the effects of a cost reduction plan. During the COVID-19 pandemic, however, many struggling companies are using it to evaluate how much longer they can afford to keep their doors open. Fixed vs. variable costs Breakeven can be explained in a few different ways using information from your company’s [...]

    Published On: March 9, 2021Categories: Business, Featured
  • Analytical procedures can help make your audit more efficient

    The use of audit analytics can help during the planning and review stages of the audit. But analytics can have an even bigger impact when these procedures are used to supplement substantive testing during fieldwork. Definition of “analytics” Auditors use analytical procedures to evaluate financial information by assessing relationships among financial and nonfinancial data. Examples of analytical tests include: Trend analysis, Ratio analysis, Reasonableness testing, [...]

    Published On: March 8, 2021Categories: Business, Featured
  • If you run a business from home, you could qualify for home office deductions

    During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the simplified method. Who qualifies? In general, you qualify for home [...]

    Published On: March 3, 2021Categories: Featured, Small Business Tax
  • Defrauded? How to help your nonprofit recover

    Thousands of not-for-profit organizations fall victim to embezzlement schemes every year — some even losing millions of dollars. But losses go beyond actual dollar amounts. The hit to a group’s reputation may scare off donors, grantmakers and other supporters. However, with the right response, nonprofits can bounce back from fraud. Here’s how. One best practice A study published in the Journal of Accounting, Ethics & [...]

    Published On: March 2, 2021Categories: Featured, Not for Profit
  • If you run a business from home, you could qualify for home office deductions

    During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the simplified method. Who qualifies? In general, you qualify for home [...]

    Published On: March 1, 2021Categories: Featured, Small Business Tax
  • What are the tax implications of buying or selling a business?

    Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal Under current tax law, a transaction can basically be structured in two ways: 1. [...]

    Published On: February 26, 2021Categories: Featured, Small Business Tax
  • How nonprofits can work with social media influencers

    With the competition for donation dollars fierce right now, many not-for-profits are turning to influencers — from Hollywood celebrities to politicians to blog stars — to raise awareness of their organizations and causes. But before your nonprofit solicits influencer support, there are a few things you should know. On the plus side If influencer marketing didn’t work, for-profit companies wouldn’t pay celebrities to tout their [...]

    Published On: February 25, 2021Categories: Featured, Not for Profit
  • Didn’t contribute to an IRA last year? There still may be time

    If you’re getting ready to file your 2020 tax return, and your tax bill is higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2021 filing date and benefit from the tax savings on your 2020 return. Who is eligible? You can [...]

    Published On: February 24, 2021Categories: Featured, Individual Tax
  • Reporting restricted cash

    Your company’s financial statements should be transparent about any restrictions on cash. Are your reporting practices in compliance with the current accounting guidance? The basics Restricted cash is a separate category of “cash and cash equivalents” that isn’t available for general business operations or investments. There are many types of restricted cash. For example, companies sometimes set aside money for a specific business purpose, such [...]

    Published On: February 23, 2021Categories: Business, Featured
  • Many tax amounts affecting businesses have increased for 2021

    A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown of those that may be important to you and your business. Social Security [...]

    Published On: February 19, 2021Categories: Featured, Small Business Tax