A premium tax credit (PTC) subsidizes the cost of health insurance purchased by taxpayers through a Health Insurance Marketplace. It’s available to those with household incomes between 100% and 400% of the federal poverty line. In one case, a husband published his sister’s cause-related book but had stopped promoting it by the tax year in … Read More
A hypothetical not-for-profit staffer named Britney had maxed out her personal credit cards. So when her car needed repairs, she reached for her employer’s card. She reasoned that she would come up with the money to pay the bill before her boss ever saw a statement. Britney didn’t come up with the money. But lucky … Read More
A U.S. District Court has dismissed four states’ constitutional challenge to the state and local tax (SALT) cap enacted as part of the Tax Cuts and Jobs Act. The court found that the states had failed to plausibly allege that the SALT cap impaired their ability to pursue their own preferred tax policies. Therefore, the … Read More
At many companies, a wide gap exists between the budgeting process and risk management. Failing to consider major threats could leave you vulnerable to high-impact hits to your budget if one or more of these dangers materialize. Here are some common types of risks to research, assess and incorporate into adjustments to next year’s budget: … Read More
The rules that allow certain benefits to S corporations that revoke their S corporation status and become C corporations (referred to as eligible terminated S corporations, or ETSCs) are applicable only if the revocation takes place by Dec. 21, 2019. An ETSC is a C corporation that was an S corporation on Dec. 21, 2017, … Read More
Traditional and Roth IRAs can be powerful estate planning tools. With a “self-directed” IRA, you may be able to amp up the benefits of these tools by enabling them to hold nontraditional investments that offer potentially greater returns. Self-directed IRAs offer the same estate planning benefits as traditional IRAs, but they allow you to transfer … Read More
Technology is altering the traditional approach to internal audits. Instead of reviewing reams of paperwork, today’s auditor is learning to use electronic records in real time. Going paperless facilitates a concept known as “continuous auditing,” where auditors continually gather data to support their procedures. This more modern approach can improve your company’s internal audit and … Read More
For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether you’re married or unmarried on December … Read More
Most businesses have a website. But determining the proper tax treatment for the costs involved in developing a website isn’t easy. The IRS hasn’t yet released official guidance, so you must apply existing guidance that’s available on other costs to the issue of website development costs. The exact treatment of website design costs depends on … Read More
If your company faces the need to “remediate” or clean up environmental contamination, the money you spend can be deductible on your tax return as ordinary and necessary business expenses. Of course, you want to claim the maximum immediate income tax benefits possible for the expenses you incur. These expenses may include the actual cleanup … Read More