For many people, the first thing they think of when they hear the words “estate plan” is a will. And for good reason, as it’s the cornerstone of any estate plan. But do you know what provisions should be included in a will and what are best to leave out? The answers to those questions … Read More
When times are tight for businesses, bartering for goods and services may be better than paying cash. But, from a tax point-of-view, there are some issues to consider: 1) The fair market value of bartered goods is taxable income, just as if you’d received a cash payment; 2) exchanges of services result in taxable income … Read More
For many people, an important goal of estate planning is to leave a legacy for their children, grandchildren and future generations. And what better way to do that than to help provide for their educational needs? A 529 plan can be a highly effective tool for funding tuition and other educational expenses on a tax-advantaged … Read More
Stay vigilant: The IRS is urging taxpayers to keep practicing smart financial information habits by securing their computers, phones and other devices. Be aware that criminals often use the IRS as a lure to hijack your personal information. To help minimize exposure to fraud and identity theft, the IRS has released a Tax Time Guide, … Read More
Under the newly passed American Rescue Plan Act (ARPA), the Child Tax Credit (CTC) has expanded for 2021 for eligible taxpayers. Before the ARPA, the CTC was $2,000 per “qualifying child.” A qualifying child was defined as a child under age 17, whom the taxpayer could claim as a dependent. For 2021, the ARPA increases … Read More
The U.S. economy is still a far cry from where it was before the COVID-19 pandemic hit about a year ago. Nonetheless, as vaccination efforts continue to ramp up, many experts expect stronger jobs growth and more robust economic activity in the months ahead. No matter what your business does, you don’t want your sales … Read More
Even though the provisions of the newly passed American Rescue Plan Act (ARPA) lean heavily toward individuals, there are several key provisions for businesses. For example, the ARPA introduces targeted Economic Injury Disaster Loan (EIDL) grants from the Small Business Administration (SBA). The loan grants are available for eligible small businesses, and the amounts received … Read More
When the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) last year, the program’s stated objective was “to provide a direct incentive for small businesses to keep their workers on the payroll.” However, according to federal officials, the recently issued second round of funding has distributed only a small percentage of the $15 billion … Read More
For tax purposes, unemployment compensation (UC) generally is included in gross income. Under the American Rescue Plan Act (ARPA), for tax years beginning in 2020, taxpayers with adjusted gross income (AGI) under $150,000 may exclude UC of up to $10,200. The $150,000 AGI limit applies for single filers, heads of household and joint filers. But … Read More
The statement of cash flows essentially tells you about cash entering and leaving a business. It’s arguably the most misunderstood and underappreciated part of a company’s annual report. After all, a business that reports positive net income on its income statements sometimes doesn’t have enough cash in the bank to pay its bills. Reviewing the … Read More