Don’t Ignore Household Employee Payroll Tax Rules
If you hire a domestic worker to provide services in or around your home, you probably have a tax liability that you don’t know about – or one that you do know about but are ignoring. Either situation can come back to bite you. When the worker is your employee, your liability includes both withholding and paying payroll taxes as well as issuing a W-2 after the close of the year. Sure, it is a lot...
Haven’t Filed Tax Returns for Multiple Years? Here’s What You Need to Do Next
You'd be hard-pressed to find someone who actually enjoys the process of filing taxes. Having said that, it's absolutely something that you're supposed to do like clockwork every single year. Of course, there is a myriad of different reasons why you may have fallen behind. You could be going through something of a major life transition and simply were unable to meet the filing deadline. Maybe you filed for a much-needed extension and then other things...
Important Tax Due Dates – February 2023
February 2023 Individual Due Dates February 3 - Tax Appointment If you don’t already have an appointment scheduled with this office, you should call to make an appointment that is convenient for you. February 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during January, you are required to report them to your employer on IRS Form 4070 no later than February 10. Your employer...
Florida Man Gets 23 Years For Running an $80 Million Ponzi Scheme, Filing False Tax Returns
Michael J. DaCorta, a 57-year-old man from Sarasota, Florida, recently learned the hard way that the biggest downside of cheating the IRS and running a longtime Ponzi scheme can be summed up in two straightforward words: "federal prison." In October, it was announced that DaCorta had been sentenced to 23 years in federal prison. He was at the forefront of a Ponzi scheme that ran from 2011 to 2019 by way of an investment company named...
All the Signs That You May Need Some Assistance With Your Bookkeeping
Especially in the early days of a business, it can be natural to want to handle as many day-to-day tasks yourself - bookkeeping included. Sometimes, it's in an effort to save money. Often, entrepreneurs just feel like they're in a better position to handle everything themselves. Regardless, this situation does seem to play out regularly. But as your business continues to grow and evolve, those day-to-day tasks become harder. Your finances become more challenging, which naturally...
The Implications of the R&D Tax Policy Changes on Manufacturers Everywhere
If you've been keeping up with the news, you're no doubt aware of a recent policy change that will impact the way that research and development (R&D for short) is handled when it comes to income taxes in the United States. Rather than being allowed to deduct those costs immediately, companies are now being told that they must spread those costs out over a period of five years. Unsurprisingly, those companies are none too thrilled with...
Are You an S Corporation Stockholder? Are You Taking Reasonable Compensation in the Form of Wages?
S corporation compensation requirements are often misunderstood and abused by owner-shareholders. An S corporation is a type of business structure in which the business does not pay income tax at the corporate level and instead distributes (passes through) the income, gains, losses, and deductions to the shareholders for inclusion on their income tax returns. If there are gains, these distributions are considered a return on investment and therefore are not subject to self-employment taxes. However, if...
Be On the Outlook for Tax Reporting Forms
With tax season upon us, documents reporting income, sales and other items needed for your 2022 tax return should have arrived or will be arriving soon. Be on the lookout for them and be careful not to accidently discard any. Here are some of the common tax forms you need to be watching for depending upon your particular circumstances. Form W-2 - If you were employed in 2022, you will receive a W-2 from each of your...
What You Need to Know About Converting an S Corp to a C Corp
The type of business that you're running has major implications in virtually all areas of your operations, especially when it comes to federal taxes. An S Corporation (or S Corp for short) is one that passes corporate income, losses, deductions, and credits to its shareholders. A C Corporation (or C Corp for short) is one where the owners are taxed separately from the business itself. Having said that, just because you chose one type of legal...
Married? Know Your Filing Options
Married taxpayers generally have the option to file a joint tax return or separate returns, a filing status commonly referred to as married filing separate (MFS). If you are married and you and your spouse are filing separate returns, or are considering doing so, you should read this article before making that decision.Depending on whether the taxpayers are residents of a separate or community property state, their separate returns may include just the income and...
Wonder What a Tax Deduction Is Worth?
Individuals are always looking for tax deductions that can reduce their tax liability. But what is the actual tax benefit derived from a tax deduction? There is no straightforward answer because some deductions are “above the line”, others must be itemized, some must exceed a threshold amount before being deductible, and certain ones are not deductible for alternative minimum tax purposes, while business deductions can offset both income and self-employment tax. In other words, there...
Start Off on the Right Foot for the 2023 Tax Year
If your 2022 refund or balance due turns out not to be the desired amount, you may want to consider adjusting your withholding based on your projected tax for 2023. If you need assistance, please call this office. W-9 Collection – If you are operating a business, then you are required to issue a Form 1099-NEC to each service provider to which you have paid at least $600 during a given year. It is a good...
What Is Business Cash Flow?
As the name suggests, cash flow is a term used to describe the money coming into and out of a business. Cash received - like money being paid to the business from its customers - would be inflow. Cash spent - like the funds being paid to vendor partners and other operational costs - would be outflow. Obviously, it's always important to have more money coming into your business than going out in most situations. But...
Alexandria Office Moves to New Location
HeimLantz is delighted to inform you that our Alexandria office has a new location. The new office address is: 1800 Diagonal Road Suite 635 Alexandria, VA 22314 If you have any questions about the move, please don’t hesitate to get in touch with your HeimLantz advisor. We look forward to seeing you and serving you at our new location.
The Tax Consequences of Gig Work
Over the last decade, in particular, the definition of the term "career" has changed. Rather than being employed by a single entity for which you receive a W2 at the end of the year, many are now participating in the "gig economy" in a variety of ways. They're not just working a day job. They're also driving for a ride-sharing service like Uber. They're delivering food for companies like DoorDash. They're leaning into the versatility that...
Time is Running Out to Take Your 2022 RMD
Required Minimum Distributions (RMD) are required taxable distributions from qualified retirement plans and are commonly associated with traditional IRAs, but they also apply to 401(k)s and SEP IRAs. The tax code does not allow taxpayers to indefinitely keep funds in their qualified retirement plans. Eventually, these assets must be distributed, and taxes must be paid on those distributions. If a retirement plan owner takes no distributions, or if the distributions are not large enough, then...
IRS Plans On Targeting Abusive ERTC Claims
Have you seen those ads on television or received email solicitations promoting a large tax credit? The large tax credit they are referring to is the employee retention tax credit (ERTC). The ERTC is a government-sponsored program to keep workers employed during 2020 and 2021 because of the COVID pandemic by providing refundable tax credits to employers that kept their workers on payroll during the COVID crisis. Unlike most tax credits, this is a credit...
Inflation Reduces Income Tax
As the country emerges from the COVID pandemic and supply chain issues, along with the fallout from the war in Ukraine, the country has been experiencing high inflation rates that negatively impact the cost of everyday living, including food, gas for your vehicle, utilities and more. But there is one shining light: tax-related inflation adjustments that will benefit most taxpayers. However, many media outlets have been touting the IRS’ recently released inflation adjustments for 2023 as if taxpayers...
Is This an Opportune Time to Convert Your Traditional IRA to a Roth IRA?
If your traditional IRA is invested in stocks and/or mutual funds, the recent substantial downward slide by the stock markets may provide a unique opportunity to convert your traditional IRA to a Roth IRA at a low cost, and then benefit when the markets recover.Why would you want to do that? Because Roth IRA distributions provide tax free retirement benefits while payouts from Traditional IRAs are taxable.Of course there is no assurance that the markets...
Important Tax Due Dates – October 2022
October 2022 Individual Due Dates October 11 - Report Tips to EmployerIf you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 11. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA...
Best Practices for Avoiding Cash Flow Problems With Your Business: A Guide
If you had to make a list of some of the biggest issues that plague small business owners regularly, cashflow problems would undoubtedly be right at the top. Cash flow is about more than just the money coming into and going out of your business. It represents your ability to capitalize on opportunities as an entrepreneur as opposed to watching them pass you by because you lack the necessary cash on hand. It's about making sure...
Electric Vehicle Credit Undergoes Major Overhaul
With the recent passage of the Inflation Reduction Act of 2022, the electric vehicle credit has undergone some major changes. Although most of the changes take effect in 2023, to qualify for the current credit, vehicles purchased after August 15, 2022, are required to meet the final assembly requirement of the new law. That requirement necessitates that vehicles sold after August 15, 2022, undergo final assembly in North America. "Final assembly" means the manufacturer must produce new...
IRS Providing Penalty Relief to 1.6 Million Taxpayers
To help struggling taxpayers affected by the COVID-19 pandemic, the IRS has issued a notice, which provides penalty relief to most people and businesses who file or filed certain 2019 or 2020 returns late. This includes nearly 1.6 million taxpayers who will automatically receive more than $1.2 billion in refunds or credits. Many of these payments will be completed by the end of September. Besides providing relief to both individuals and businesses impacted by the pandemic, this...
Mid-Year Tax Planning Checklist
All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially benefit them. Mid-year is the perfect time for tax planning. The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them. Here are some...
October Extended Due Date Just Around the Corner
If you could not complete your 2021 tax return by April 18, 2022, and are now on extension, that extension expires on October 17, 2022. Failure to file before the extension period runs out can subject you to late-filing penalties. There are no additional extensions (except in designated disaster areas), so if you still do not or will not have all the information needed to complete your return by the extended due date, please call this...
Research Credit Potentially Doubled By The Inflation Reduction Act
The Inflation Reduction Act that President Biden signed into law back in August, has a lesser-known provision that could benefit many small business startups, allowing them to potentially double the amount of the research and development tax credit they can claim from $250,000 to $500,000 per year against payroll taxes. This little-known tax benefit for new, qualified small businesses is the ability to apply a portion of their research credit – up to $500,000 after December...
Health Savings Accounts Fill Multiple Tax Needs
The Health Savings Account (HSA) is one of the most misunderstood and underused benefits in the Internal Revenue Code. Congress created HSAs as a way for individuals with high-deductible health plans (HDHPs) to save for medical expenses that are not covered by insurance due to the high-deductible provisions of their insurance coverage. However, an HSA can act as more than just a vehicle to pay medical expenses; it can also serve as a retirement account. For...
If You Want to Maximize Your Social Security Income, You Need to Start Planning Now
According to one recent study, about 27% of people in the United States between the ages of 55 and 67 years old have less than $10,000 saved for retirement. If you needed just one statistic to outline how important it is to plan ahead when you're younger, let it be that one. Similarly, you need to understand that planning isn't about simply making sure that you CAN retire. It's also about doing what you can to...
October Extended Due Date Just Around the Corner
If you could not complete your 2021 tax return by April 18, 2022 and are now on extension, that extension expires on October 17, 2022. Failure to file before the extension period runs out can subject you to late-filing penalties.There are no additional extensions (except in designated disaster areas), so if you still do not or will not have all the information needed to complete your return by the extended due date, please call this...
How to Protect Yourself When Selecting Investors For Your Startup
Any seasoned entrepreneur will tell you that coming up with an idea for a startup is ultimately the easy part of this process. Figuring out how you're going to get the funds necessary to make that vision a reality? That part is a bit trickier. Selecting investors for your startup can be the hardest part of the process – not only because you want to make sure you're making the right choices for your new company,...
Life Changing Events Can Impact Your Taxes
Throughout your life, there will be certain significant occasions that will impact not only your day-to-day living but also your taxes. Here are a few of those events:Getting Married – If you just got married or are considering getting married, you need to be aware that once you are married you no longer file returns using the single status and generally will file a combined return with your new spouse using the married filing jointly...
Inflation and an Economic Slowdown: A Double Whammy for your Finances
Newspapers and media reports have been filled with talk of inflation and recession. Experts are arguing about the definition of the latter. Pundits are pondering whether the slowdown reflected in the latest consumer price index report means that inflation has peaked. You, in the meantime, are still staring in disbelief at the numbers that are rolling by as you fill your tank with gas or the total tally when you buy a few bags of groceries. Are We...
Not All Interest Is Deductible For Taxes
A frequent question that arises when borrowing money is whether or not the interest will be tax deductible. That can be a complicated question, and unfortunately, not all interest an individual pays is deductible. The rules for deducting interest vary, depending on whether the loan proceeds are used for personal, investment, or business activities. Interest expense can fall into any of the following categories: Personal interest – is not deductible. Typically this includes interest from personal credit...
Don’t Overlook Your Charitable Contributions
Your charitable contributions include a wide variety of tax-saving opportunities, some you may not be aware of, and some that are frequently overlooked. And there are some contributions that you may believe are deductible that really are not. Being knowledgeable of what is and is not a qualified charity, a qualified charitable contribution, and charitable giving strategies can go a long way toward maximizing your charitable tax deduction.To be deductible the contributions must be made...
Will Your Planned Retirement Income Be Enough After Taxes?
That is an important question because the actual money you have to spend when you retire depends upon the after-tax sources of your retirement income. Thus it is important to understand how the various retirement vehicles are taxed. There is significant diversity in taxation since a retiree must consider both Federal and state taxes on retirement income. Of all the states one might consider retiring to, there are eight that have no state income tax....
6 Benefits of Outsourced Accounting
Running a successful business is no small task. From daily decision-making to long-term planning—and everything in between—you have a lot of choices to make. Many owners and managers struggle to stay organized and make confident financial decisions. For those who find difficulty focusing appropriately between working in their business and working on their business, outsourcing their accounting needs is often a great solution. Outsourcing the day-to-day financial aspects of the business to seasoned accounting professionals helps...
How Outsourced Accounting Services Can Grow Your Business
As a small business owner or manager, pursuing business growth is one of your top priorities. While most of your strategies may occur internally, one key area of potential growth involves teaming up with an external partner by outsourcing your accounting services. You may be thinking, “Won’t paying an external accountant to handle my business’s financial functions be cost-prohibitive? Won’t it stunt the growth of my business?” In fact, there are many benefits to seeking external...
Divorce and Taxes – What Are the Implications?
This article explains the precautions to take when getting a divorce, and several tax concerns that need to be addressed to ensure that taxes are kept to a minimum and important tax-related decisions are properly made. Five issues to consider in the process of divorce include alimony or support payments, child support, personal residence, pension benefits, and business interests. Each spouse could save thousands on their home, up to $500,000 of avoidable tax, if they...
HeimLantz Welcomes Director of Outsourced Accounting
HeimLantz is excited to announce the addition of Nicole Roudiez, CPA to our professional team. Roudiez joins the firm as the Outsourced Accounting Business Unit Leader. In this capacity, she is responsible for overseeing HeimLantz’s Outsourced Accounting Department. Roudiez brings with her over a decade of valuable experience. Most recently, she spent seven years as a small business consultant with an Annapolis-based firm. “I am very excited to welcome Nicole to the HeimLantz team,” said Thomas...
Does Your Small Business Have the Right Tech Tools for the Future?
This article explains that the current state of the economy and the Covid-19 pandemic has drastically changed the way consumers behave. It's extremely important for small businesses to capitalize on digital transformations. A Bill.com survey showed that "75% of SMBs took actions ranging from price changes, new business models, new customer outreach, and new product offerings and services." The rise of e-commerce is significant, especially for those ages 65 and up, because, by January of...
Changes to Bonus Depreciation Rules
This article explains that bonus depreciation rules have been changed over several years. In 2016 and 2017, under the IRS Revenue Proclamation (Rev. Proc.) 2019-33, Section 5.02 Section – Deemed Election states: "a taxpayer that timely filed its federal tax return for the 2016 taxable year or the 2017 taxable year also will be treated as making the §168(k)(7) election for a class of property that is qualified property acquired after September 27, 2017 by...
4 Tips to Save at the Pump With or Without a Gas Tax Holiday
This article explains that the Biden Administration has proposed a federal gas tax holiday in order to help US citizens with the current gasoline prices. Unfortunately, Patrick De Haan, head of petroleum analysis at GasBuddy, said "if a gas tax holiday coincides with rising wholesale fuel prices, consumers won’t see much of an impact at the pump because the tax move would be offset by the higher cost." The national average for gas was over...
The Majority of US Small Businesses Will Soon Face New Filing Requirements
New regulations regarding financial reporting for American businesses operating both domestically and overseas will soon go into effect. In 2021, Congress passed the Corporate Transparency Act (CTA), which is a piece of legislation aimed at monitoring potential money laundering and other illicit activities. Businesses subject to the CTA will be required to provide information to the Financial Crimes Enforcement Network (FinCEN), an arm of the Department of the Treasury. The CTA requires the filing of a...
Upcoming Office Closure
In an effort to provide our employees with a much deserved break, the HeimLantz offices will be closed July 1 – 5 to allow our valued team some rest and relaxation. We will return to work energized and ready to go on Wednesday, July 6. If possible, please reach out to your accountant with any needs by June 30. Thank you in advance for your understanding and we hope you enjoy the upcoming holiday weekend.
Tax-Avoiding Schemes Are at the Top of the 2022 “Dirty Dozen” List
This article explains some tax-avoiding strategies that the IRS will be flagging down. Some strategies include "concealing assets in offshore accounts and improper reporting of digital assets, non-filing of income tax returns by high-income individuals, abusive syndicated conservation easements, and abusive micro captive insurance arrangements." The article proceeds to categorize other sources of taxable income, all of which the IRS will punish if found to be abused. To view this article, click here to access the...
Is Your Will or Trust Up-to-Date?
When was the last time you or your attorney reviewed or updated your will or trust? If it was some time ago before the passage of substantial tax law changes over the past few years, your documents may be out of date. Among the many changes was a substantial revision to the estate tax exclusion.No doubt your will or trust was prepared with not just estate taxes in mind but so that your assets will...
Important Times to Seek Assistance
Waiting for your regular appointment to discuss current tax-related issues can create problems or cause you to miss out on beneficial options that need to be timely exercised before year-end. Generally, you should call this office any time you have a substantial change in taxable income or deductions. By doing so, we can advise you about how to optimize your tax liability, avoid or minimize penalties, estimate and pre-pay required taxes, document deductions, and examine...
When Can You Dump Old Tax Records?
Taxpayers often question how long records must be kept and the amount of time IRS has to audit a return after it is filed.It all depends on the circumstances! In many cases, the federal statute of limitations can be used to help you determine how long to keep records. With certain exceptions, the statute for assessing additional tax is 3 years from the return due date or the date the return was filed, whichever is...
Summer Employment For Your Child
Summer is almost here, and your children may be looking for a summer job. The standard deduction for single individuals increased from $12,550 in 2021 to $12,950 in 2022, meaning your child can now make up to $12,950 from working without paying any income tax on their earnings.In addition, they can contribute the lesser of $6,000 or their earned income to an IRA. If they contribute to a traditional IRA, they could earn up to...
Vacation Home Rentals: How the Income Is Taxed
If you have a second home in a resort area, or if you have been considering acquiring a second home or vacation home, and with summer just around the corner, you may have questions about how rental income is taxed for a part-time vacation-home rental. The applicable rental rules include some interesting twists that you should know about before you begin renting. Although some individuals prefer to never rent out their homes, others find such...
Writing Off Your Business Start-Up Expenses
Unfortunately, as a result of the COVID pandemic many small firms have gone out of business. However, with the help of vaccines and the waning lethality of the latest versions of the virus, new businesses will be opening as the economy returns to near normal. New business owners, especially those operating small businesses, may be helped by a tax provision allowing them to deduct up to $5,000 of the start-up expenses and $5,000 of organizational...
Tax Issues That Arise When Converting a Home into a Rental
With the current substantial appreciation in home values and demand for housing exceeding the available inventory, along with low home mortgage interest rates, more and more homeowners are converting their existing homes into rentals when they buy a new home. Other reasons individuals may make the conversion include maximizing the tax benefits for an elderly person who can no longer live alone by delaying the sale of that person’s home; and to ensure that a...
R&D Tax Credits for Startups
This article explains the significant benefits that startups in 2022 receive when using R&D tax credits. For companies to qualify for R&D tax credits, their ideas must be a new or improved business component for a permitted purpose, include activities technological in nature, have elimination of uncertainty, and use the process of experimentation. The amount companies get back in R&D research "depends on the sum of your Qualified Research Expenses (QRE), which can include wages,...
Gas Saving Tips for Your Summer Travel
This article explains the best money-saving methods for travelers hitting the road this summer. All 50 US states have hit the $4 per gallon mark, and the national average is currently at $4.59. According to AAA spokesperson Andrew Gross, "gas prices are now $1.56 more than a year ago and $1.05 more than they were when the war in Ukraine started in February." Several tips to help save on the high gas prices include filling...
The Pros and Cons of Running a Business with Family
This article explains how hiring family members can have their strengths and weaknesses. It is much easier to hire a family member rather than a stranger because each person can usually be reliable and dependent on the other. However, in order to keep a happy family, there are several guidelines that can keep the business running smoothly. Firstly, it is essential to develop clear job descriptions in order for each member to know exactly what...
HeimLantz Announces New Equity Owner
The local public accounting, business advisory, and wealth management firm of HeimLantz is pleased to announce that, effective May 1, 2022, Sheri Mergenthaler, CFP®, CPWA®, CDFA® has been admitted to equity ownership of the firm. Mergenthaler has devoted the entirety of her professional wealth management career to HeimLantz. She joined the firm in 2006, first as an intern and then as a Wealth Management Assistant. She subsequently served as a Client Relationship Manager and then a...
Tips for Hiring and Retaining Employees
This article discusses how running a small business can be a difficult task, especially when managing your most important asset, the employees. However, by following tips such as upgrading your onboarding checklist software, rewarding employees for their experience, running effective remote meetings, and inspiring through positivity, this task can be made easier. Every small business needs great employees in order to thrive, and this article outlines different strategies you can try. Be sure to check...
8 Ways to Save Startup Money in 2022
This article discusses how many start-up businesses eventually fail, but by utilizing the eight strategies outlined in this link, you will give your start-up business the best chance possible at succeeding and even flourishing. For example, spending the necessary time developing a marketing strategy is essential to engaging your target audience. Additionally, strategies such as partnerships and employee engagement are also essential in any successful start-up business. Be sure to check out this link for...
Communication is Vital for CFOs
In this article, a survey was conducted by Oracle NetSuite to get insights from numerous executives about the importance of each role and their communications skills. The survey "polled small and midsize company leadership in four categories: CFOs, nonfinance executives (other members of the C-suite), finance managers, and nonfinance managers." The survey showed that the finance chiefs' proficiency in understanding the business was marked at a 72 on a 0-100 scale. However, CFOs believe their...
How Can Your Small Business Take Action Against Rising Theft and Shoplifting?
This article explains how shoplifters are stealing thousands of dollars from big and small retailers, and how the smaller retailers are handling the situation. Derek Friedman, a small business owner, says that since 2019 shoplifting has been a big financial issue with losses totaling over $200,000. Friedman also said he does not turn in all the claims to his insurance for fears of being dropped. Friedman has recently implanted a 1% crime-spike fee to help...
Small Business Trends to Watch
This link offers a comprehensive breakdown of the small business industry as it stands in 2022. For example, graphs displaying emerging trends, the effect of the pandemic, and hiring numbers are all included. Small businesses are often viewed as the lifeline of America, and these numbers back up that conclusion. No matter the current state of your business, being educated on trends included in this article can prove beneficial in the long run. Be sure...
Young Family Business Owners Can Be the Most Determined to Sustain and Grow Your Business
According to research by Family Enterprise Foundation, younger generation owners are the most committed to preserving the family business. A survey found that "97 percent of next-generation respondents consider it important to sustain the family business, while only 74 percent of senior-generation respondents feel the same." The importance placed on direct family leadership of the business is also higher for younger generations as 95 percent of younger respondents felt that family taking over is important,...
Daniel Russell Named to NACVA’s 2021 “40 Under Forty” List
HeimLantz is so proud to announce that firm partner Daniel Russell, CPA.ABV.CFF, CVA, CFE, MSA has been named to the National Association of Certified Valuators and Analysts (NACVA) “40 Under Forty” list for 2021. Russell has been with HeimLantz since 2013 when he joined the firm as a staff accountant. He went on to serve as both the leader of the firm’s Consulting Business Unit and the Director of Business Development, roles that he now carries out...
What Trends Should Small Businesses Be Watching in 2022?
This article discusses a variety of trends that small businesses should either be focusing on or not as we continue along in 2022. For example, this link lists shipping status, waiting for the new normal, and the meta-verse as overrated trends that your small business should not be too worried about. On the other hand, trends such as constant communication, investing in technology infrastructure, the online marketplace, and product packaging should be a priority for...
IRS Provides Steps to Avoid Errors
Need to look up your economic stimulus payments or advance child tax credit payments? Read this article from the IRS for more information.
Does Your Estate Plan Need Updating to Include Digital Assets?
This article explains the importance of keeping your estate plan up to date, especially since people are living longer and need more options in their documented life. Three sections in your estate plan that should be examined several times include digital assets, guardianship designations, and appropriate names in the documents. Adding an addendum in legal documents can help with the hassle of updating each new digital asset program. Choosing a guardian that will act in...
Strategies for Preventing Fraud
This article discusses how fraud is one of the most concerning topics for start-ups and small businesses alike due to the highly digitalized world that we live in today. It is so prevalent that "organizations report losing 5 percent of their annual revenue to fraud." For a small business, that could be detrimental. However, utilizing best practices surrounding areas such as payroll, online banking, and written checks can all help protect your business. Additionally, hiring...
Building a Business Case for Remote Work
This article explains the challenges that businesses face when dealing with remote workers. Mobility managers may face numerous tasks, including understanding complex and evolving rules for tax, immigration, and other legal purposes. Mobility managers also will need to communicate risks and information requirements to business units and their mobile employees. Risks that occur when a business is not staffed to create a proper policy and framework for your mobile workforce, include compensation risks, corporate law...
Small Business Trends to Watch
This article discusses how 2022 is a viable year for most small businesses as they continue to rebound from the coronavirus pandemic. A recent report shows that attracting new customers is the top challenge for most small businesses. However, utilizing trends such as shifting customer expectations, focusing on happy employees, and investing in the right technology can help alleviate this problem and others. Empowering your employees will yield many results and can boost your company...
Digital Innovations to Watch in 2022
This article discusses how the coronavirus pandemic accelerated many trends that we see today in the workplace. Specifically for start-ups, it is important to take advantage of these trends to stay competitive. For example, trends such as embracing the fact that hybrid and remote work are here to stay, demand for personalization, privacy, and artificial intelligence growth are all expected to have a significant impact in 2022. No matter the sector that you operate in,...
Strategic Preparation is Key to Selling Your Company
Many people dream of starting their own company, but if you’re one of the few who has turned their dream into reality, you know that it didn’t happen overnight. Making your business a success involved plenty of research, preparation, and hard work that you were happy to invest in. What few who are ready to move on realize is that selling requires almost the same amount of effort and planning.Entrepreneurs intent on selling often want...
What Is Tax Basis and Why Is It So Important?
For tax purposes, the term “basis” refers to the monetary value used to measure a gain or loss. For instance, if you purchase shares of a stock for $1,000, your basis in that stock is $1,000; if you then sell those shares for $3,000, the gain is calculated based on the difference between the sales price and the basis: $3,000 – $1,000 = $2,000. This is a simplified example, of course—under actual circumstances, purchase and...
IRS Suspends Sending Most Notices Due to Backlog and Errors
A recent article from CPA Practice Advisor states, "These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices." To learn more about this situation and what the IRS is doing to handle the backlog, please click here.
Protecting Your Business from Cyberattacks and Fraud in 2022
This article discusses how most companies today rely heavily on the Internet and other technology to operate. Although these tools are vital and can be useful, they also pose the threat of cybercrime. However, by utilizing strategies such as encrypting your data, investing in artificial intelligence, and utilizing your forensic accountant, your business should be able to detect fraud in its early stages. No matter the industry that you operate in, cyber security is a...
Determining If Your Vacation Rentals Are Really Commercial Real Estate
This article discusses the ins and outs of a tax strategy known as a cost segregation study, and in particular, for those that own a vacation rental real estate. When the property is leased out for less than 30 days at a time, it could be recognized as non-residential real estate property. Therefore, taxpayers should undertake a cost segregation study on their property in order to take bonus depreciation and meet passive activity loss grouping...
Ways to Keep Adult Children from Becoming a Financial Liability
This article explains several scenarios where your child may be asking you for financial help. First, they may have taken many loans and want your help with EMIs. The author suggests turning the child to a financial advisor to keep your finances intact. Secondly, the child may want a loan to help with a start-up company. If the child has mentioned this scenario before, then hopefully it makes sense for the parents to hand out...
Tax Deductions and Credits to Consider in 2022
This article discusses how there are two main strategies that individuals can take advantage of in order to lower their tax bills, deductions, and credits. While tax deductions lower your taxable income, tax credits are "a dollar-for-dollar reduction to your tax bill." However, many people do not know of or forget about all the things that can qualify as either a deduction or credit. For example, tuition and fees deductions, educator expenses, and home office...
Embracing a New Era of Innovation in 2022
This article explains the importance of building your company's online structure in a growing technological world. Technology is more powerful than ever challenging a business to restructure in new ways where it can sustain itself in a new market. It offers an opportunity to grow in every aspect because every facet of your brand can be tracked. The key element to success is finding a mission to stand behind which can build up you and...
The Benefits of Business Valuation for Small Businesses
This article demonstrates the possibilities a small business can pursue after receiving a valuation. A valuation can give small business owners benefits such as tracking progress and "a road map to deliberate decision making." Some other benefits that come along with a business valuation include access to more investors, better decision making to improve your business value, sale value, understanding where your business fits in the industry, and finally obtaining a true company value. Business...
The importance of Having a Plan When Including Family in Business
In this article Jolene Brown, a family business consultant points to four major mistakes when breaking down a family business. She firstly points out that assuming all genetic relationships equal good working relationships is wrong. Brown says “acceptance in a family should be unconditional, but acceptance into a business should be conditional and is not a birthright.” Her second suggestion is to stop believing that the business can financially support any and all family members...
What the End-of-Work Landscape Looks Like Now
This article discusses how the coronavirus pandemic forced many employees to look towards their 401(k) plan in order to borrow cash for personal financial burdens. However. “About 47% of employees who took a retirement loan say they ended up taking more than they needed,” according to research from Voya Financial. Through the years, more and more employees are expecting that they will have to work part-time in retirement because of financial instability. However, as an...
Construction Disputes and How to Avoid Them
This article discusses a recent insight report that dives into the top problems that are occurring within the current construction industry. The report revealed that “design problems” have overtaken “change in project scope” as the primary cause of disputes in the United States. Additionally, workmanship deficiencies, physical conditions that were unforeseen, and poor management of subcontracting / supplier were also cited. However, this article does not only talk about common problems, but it also offers...
Things to Consider When Planning Your Family Business Succession
This article explains why family businesses continue to generate 70-90% of global GDP annually. Ernst and Young reported that “the largest 500 family businesses constitute the third-largest economic contribution in the world by revenue and employ 24.1 million people worldwide.” Family businesses will thrive if they continue to follow four categories: the nature of change, talent in transition, the advisor advantage, and the not-so-secret family recipe for success. In the “nature of change” category, digitalization,...
Inflation Adjustments for 2022 Returns
This article explains the new inflation adjustments that are being made by the IRS issued through Rev. Proc. 2021-45. The IRS also cautioned that “with legislation pending in Congress that might affect 2022 tax returns, taxpayers should consult future IRS guidance to determine if the adjusted amounts in Rev. Proc. 2021-45 remain applicable in 2022.” Single individuals that make $10,275 and under are subject to a 10% tax, an increase of $325 from 2021. Other...
New Infrastructure Bill Heading for Biden’s Signature
This article discusses how the House of Representatives passed an infrastructure bill on Friday night that will most likely turn a $1.2 trillion bill into law with the signing of President Biden. Many members of the construction industry say that this “provides much-needed resources to modernize the country’s aging and overburdened infrastructure.” This bill outlines a significant amount of funding for projects surrounding roads and bridges, Internet infrastructure, public transit, and the cleaning of polluted...
Consequences of Some Retirement Options on Small Businesses
Valeria Alterman and Ariane Froidevaux delve into research on various retirement options for small business owners. They look into their custom model of retirement decision options for small business owners to separate from their business, all based on “the ‘proximity’ of the business to the individual once the decision has been made.” The four options (family succession, retirement from management while maintaining ownership, independent sale, and liquidation) are codependent with economic and natural consequences. Alterman...
Succession Planning Should Be Part of Family Business Strategy
Too often CEOs of a company will procrastinate the succession of their company to the next generation. This may happen since the idea of retiring from a business can be too difficult to embrace. Another reason is if the CEO decides to hand off the reigns to the family, there could be a dispute about who should take charge. To avoid problems with succession your best bet is to identify the next leader and start...
Can the Construction Industry Attract the Next Generation of Workers?
This article discusses the potential problem that the construction industry may face within the recruitment sector. For a long amount of time, the construction industry has carried a viewpoint of hard labor hours that does not pay as well as other industries. In addition, because of the coronavirus pandemic, Millennials and Gen Z members are looking for a hybrid/work from home option that the construction industry obviously does not offer. Recruitment strategies are going to...
Keep Your Money in the Family with These Estate Planning Tips
This article explains why and how keeping money within the hands of the people you trust will help you in the future. Heirs could be responsible for “paying federal income taxes on either assets or retirement accounts, and if you plan poorly, your money could end up in the hands of an ex-spouse or creditor.” To prevent that tragedy, meeting with an estate attorney and an accountant could be very beneficial. To help keep your...
Keeping a Family Business Running Smoothly Generation after Generation
This article discusses three dysfunctions that are commonly seen throughout family businesses. Chris Yonker, the author of the article, says that following the steps of over-achievers can be a bad way to help ensure the family business continues to run properly. Often children are faced with the challenge of following the footsteps of their parents, even if they do not want to follow their steps. Parents that focus too much on their business instead of...
Material Shortages Impact the Construction Industry
This article discusses how the construction industry has still not fully recovered from the coronavirus pandemic and the ensuing supply chain difficulties. For example, key materials such as steel, PVC pipes, and drywall have all seen a significant price jump and shortages causing delays throughout the industry. However, lumber did see a price drop throughout the last few months, but the price stored back up by 40% since August. Overall, if you are planning or...
Business Travel Deductions for 2021
This article discusses how under previous law, deductions for business meals were limited to 50% of the cost, but through the pandemic, that deduction was doubled to 100% for the time being if the meal was provided by a restaurant. Further, many self-employed taxpayers are trying to re-energize their business through travel, and if you are honestly keeping records of money spent, many deductions await. In fact, you can sprinkle in some pleasure during the...
Receipt Signatures, Does Your Small Business Need Them?
This article discusses an important topic that all small business owners should consider as it occurs every single day. In the past, credit card transactions required a signature in order to help authenticate the purchase. However, with the development of EMV technology, most credit card companies have dropped this requirement, and large companies such as Walmart and Target applauded this decision. However, for small businesses, it is more important to ask some key questions in...
The Top 5 Challenges a Business Owner Faces
By: Zack Greene Many business owners struggle with the same problems. CEOs (presidents, owners, shareholders—whatever you happen to label them as) need more time to work on the business. In order to do this, they need to overcome common pitfalls to direct their workload away from the day-to-day work that sometimes leaves their efforts stuck in the weeds. CEOs are often hesitant to ask for outside professional assistance. They believe that they must manage the challenges that...
Federal Vaccine Mandates for Contractors
This article discusses how federal contractors are going to be required to be fully vaccinated against the COVID-19 virus by December 8th of this year. The guidance specifically states that the protocols will include covered contractor employees and “contractor or subcontractor employees in covered contractor workplaces who are not working on a federal government contract or contract-like instrument.” Additionally, this link also outlines some of the other new workplace safety protocols that are going to...
Productivity Tips for Your Small Business
This article discusses both the importance of a good leader in any small business as well as the requirement that the business is productive. To help you decide what is important to understand, members of the Young Entrepreneur Council weigh in on what they believe are tips that all small businesses should be considering. For example, prioritizing responsibilities, automating and digitalizing tasks, having a clear-cut definition of success, and tracking business performance are all strategies...
Succession Planning for Your Family Business
This article discusses the importance of having a succession plan. According to the Dayton Daily News, about 3 out of 4 small businesses currently do not have a succession plan. Succession plans should not be a birthright, but instead, should go to the most qualified individual. Planning for successor years ahead can eliminate power struggles, allows you to thoroughly vet candidates, and allows you to come to the realization that soon you will no longer...
Affordable Marketing Ideas for Startups
This article discusses how marketing is essential for any successful business, especially startups. However, sometimes the best marketing practices can be extremely expensive with little return on investment. However, using simple tips such as getting a social cost, having a referral program, and sending emails to the right people are all inexpensive ways that your startup can gain consumer attention. It’s also important to constantly be in a creative and innovative mindset during this process....
Carter Heim Admitted to the Anne Arundel Hall of Fame
Carter Heim, CPA.CFF.CGMA, MST will be inducted to the Business Hall of Fame by the Anne Arundel Chamber of Commerce on October 14, 2021. Heim started his accounting career in 1975 and founded Heim & Associates, the predecessor of HeimLantz, in 1995. Since then, he has led the firm in serving a wide range of clients, including businesses, business owners, and organizations. Heim offers clients business and tax planning, succession planning, estate tax planning, business growth...
Things to Consider Before Selling Your Business
This article discusses the best methods to practice before selling your business to someone who values it as much as you do. Firstly, it is important to determine your business value. In order to successfully do that it is necessary to follow the asset method, market method, and income method. It is also important to acquire a third-party professional to determine if the sale is fair. Seeking financial and legal expertise, hiring a professional business...