Sale of a Principal Residence: Tax Concerns, Gain Exclusions and How an Accountant can Help Buying or selling a home is a major transaction – likely the most impactful that families will ever engage in. And, of course, major transactions come with major tax ramifications. It’s important for home sellers to be aware of
The Basics of Contributing to a Traditional IRA Individual retirement accounts (IRAs) have been around for 50 years, and during those decades, they’ve provided taxpayers with an alternative (or supplement) to 401(k)s. Today, IRAs are a popular option among the self-employed and anyone else who doesn’t have access to an employer-sponsored plan. Here, we’ll
The Corporate Transparency Act: What it Means for Your Business and How to Prepare A standout part of the Anti-Money Laundering Act of 2020, the Corporate Transparency Act (CTA) requires domestic companies (or foreign companies registered to do business in the U.S.) to engage in a new wave of information reporting. Specifically, reporting companies
Form 1099-NEC and Form 1099-MISC: What to Report and How to Report It Businesses already have a pile of tax documents to submit every year, but here comes another. Form 1099-NEC is now a regular part of the tax preparation process for companies since its reinstatement in 2020. Form 1099-NEC is used to report
Taking Money Out of a Business: The Dos and Don’ts The IRS pays close attention to any transactions between businesses and individuals, including the company’s owner, partners, and any shareholders. These transactions may be classified into one of several categories, some of which trigger a taxable event. With the expert guidance of a reputable
Pension Income Planning: How Taxes, Life Insurance and Annuities Factor In Finances are a primary cause of post-retirement stress, whether it’s the fear of leaving nothing behind for loved ones, or fear of exhausting assets before death. In both cases, planning can help. Pensions, life insurance and annuities are three financial instruments that many
Expense Reimbursements for Employees: How They’re Taxed and How They’re Reported Employees may accrue various expenses – meals, travel, lodging, etc. – that are eventually reported and reimbursed. Depending on how the employer and employee manage the expenses, they may be taxable or deductible. Staying on top of company expenses is something every business
Individual Retirement Accounts – Traditional IRAs, Roth IRAs, and their Differences Individual retirement accounts (IRAs) are tax-leveraged savings tools that allow taxpayers to financially prepare for their post-work years. While some IRAs may be offered through an employer, taxpayers typically choose and manage their own IRA. And one of the most important considerations when
Fringe Benefits: What They Are and How They Are Taxed Fringe benefits are additional forms of compensation beyond money. While the term “fringe” may suggest that these benefits are uncommon, they are in fact ubiquitous among employees. Health benefits, for example, are offered to about 75 percent of all U.S. employees, according to the
As a business’s assets rise or fall in value, the result is either a capital gain (an increase in value) or capital loss (a decrease in value). The vast majority of assets are considered capital assets, but not all. Further, capital gains and losses are each heavily regulated by tax codes and require additional
