Many employees take advantage of the opportunity to save taxes by placing funds in their employer’s health or dependent care flexible spending arrangements (FSAs). As the end of 2020 nears, here are some rules and reminders to keep in mind. Health FSAs A pre-tax contribution of $2,750 to a health FSA is permitted in both … Read More
The IRS has offered clarification on the interaction of the COVID-19-related Employer Retention Credit (ERC) in acquisitions. Under the law, if an employer receives a Paycheck Protection Program (PPP) loan, it may not receive an ERC. In an updated set of FAQs, the IRS has provided guidance focused on ERC eligibility if an employer acquires … Read More
According to literature, the “seven deadly sins” are lust, gluttony, greed, laziness, wrath, envy and pride. Although individuals may be guilty of these from time to time, other types of “sins” can be fatal to an estate plan if you’re not careful. Here are four transgressions to avoid. Sin #1: You don’t update beneficiary forms. … Read More
Taxpayers often want to donate to a charity around the holiday season. As an incentive for 2020, individuals can deduct up to $300 without itemizing deductions on their tax returns. And an IRS tool, the “Tax Exempt Organization Search,” can help you determine if giving to your favorite cause will allow for a tax deduction. … Read More
The IRS has issued final regs related to Section 1031 like-kind exchanges. In a nutshell, a Sec. 1031 like-kind exchange allows taxpayers to exchange one or more pieces of business or investment real estate for other business or investment real estate of equal or greater value without recognizing capital gain. Recognition of gain is deferred … Read More
It’s been estimated that there are roughly 5 million family-owned businesses in the United States. Annually, these companies make substantial contributions to both employment figures and the gross domestic product. If you own a family business, one important issue to address is how to best weave together your succession plan with your estate plan. Rise to … Read More
With the 2021 tax filing season approaching, the IRS is asking Congress for consistent multi-year funding. In testimony before a House Ways and Means oversight committee, IRS Commissioner Chuck Rettig noted that the tax agency collected $3.56 trillion in taxes in fiscal year 2019, generating nearly 96% of the funding that supports the federal government. … Read More
The year 2020 has taught businesses many lessons. The sudden onset of the COVID-19 pandemic followed by drastic changes to the economy have forced companies to alter the size of their workforces, restructure work environments and revise sales models — just to name a few challenges. And what this has all meant for employees is … Read More
How should employers treat “vacation buy back” for tax withholding purposes? Some companies are offering employees the option of “cashing in” accrued vacation time because many are working remotely due to COVID-19. For payroll purposes, employers should treat the payments as regular wages. Whether the vacation leave is taken or not, the wages are subject … Read More
S corporations must comply with several strict requirements or risk losing their tax-advantaged status. Among other things, they can have no more than 100 shareholders, no more than one class of stock and only certain types of shareholders. In an estate planning context, it’s critical that any trusts that own S corporation stock — or … Read More