Careful recordkeeping is one key to success for small business owners. A good system of maintaining records leads to better decision making. It helps business owners monitor business progress; prepare financial statements; identify income sources; track expenses; support items on tax returns; and more. Small business owners are free to use the system of their … Read More
Don’t let the holiday rush keep you from taking some important steps to reduce your 2019 tax liability. You still have time to execute a few strategies. For example, are you thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy them and place them in … Read More
The IRS is encouraging taxpayers to use its “Interactive Tax Assistant” tool, which provides basic information on a wide range of tax topics. Topics are organized by category, such as the Affordable Care Act; filing requirements, forms to use and due dates; and filing status, dependents and exemptions. Other topics include pensions, IRAs, Social Security, … Read More
Audit season is right around the corner for calendar-year entities. Here’s what your auditor is doing behind the scenes to prepare — and how you can help facilitate the audit planning process. The big picture Every audit starts with assessing “audit risk.” This refers to the likelihood that the auditor will issue an adverse opinion … Read More
The IRS is tightening up enforcement action on syndicated conversion easement transactions. They involve transactions that allow multiple taxpayers to claim a deduction for a particular conservation easement. IRS Commissioner Chuck Rettig said that “putting an end to these abusive schemes is a high priority for the IRS.” According to the agency, taxpayers may avoid … Read More
Life insurance can be a powerful financial and estate planning tool, but its benefits can be reduced or even eliminated if you designate the wrong beneficiary or fail to change beneficiaries when your circumstances change. Common pitfalls to avoid include: Naming your estate as beneficiary. Doing so can subject life insurance proceeds to unnecessary state … Read More
The IRS has issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, medical and charitable purposes. Notice 2020-5 provides that the 2020 standard mileage rate for transportation or travel expenses is 57.5 cents (down from 58 cents per mile for 2019) for all miles of … Read More
State law typically specifies the minimum number of directors a not-for-profit must have on its board. But so long as organizations fulfill that requirement, it’s up to them to determine how many total board members they need. Several guidelines can help you arrive at the right number. Small vs. large Both small and large boards … Read More
The IRS has updated its list of automatic accounting method changes subject to automatic consent procedures. Revenue Procedure 2019-43 modifies change procedures for 1) certain sale, lease, or financing transactions; 2) tenant construction allowances; 3) streamlined method changes for taxpayers without an applicable financial statement; and 4) a change in basis of computing reserves under … Read More
Estate planning is often associated with the division of your assets, and this is certainly a key component. It’s typically accomplished, for the most part, by drafting a will, which is the foundation of an estate plan. With a valid will, you determine who gets what. It can cover everything from the securities in your … Read More