Insights: Tax Services
You may be liable for “nanny tax” for all types of domestic workers
You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a…
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Employers: In 2023, the Social Security wage base is going up
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics about Social Security The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees…
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Plan now to make tax-smart year-end gifts to loved ones
Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes to…
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Generation-Skipping Transfer Tax (GSTT)
What is it? The generation-skipping transfer tax is a federal tax on a gift or inheritance that prevents avoiding estate taxes by skipping a generation. Before this tax was introduced in 1976, wealthy individuals could legally make gifts or bequeath property to their grandchildren without paying any federal estate taxes. The 1976 law closed this…
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Year-end tax planning ideas for your small business
Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely produce the best results for most businesses, as will bunching deductible expenses…
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The Inflation Reduction Act: Construction Firms
By: Chris Lambert, CPA, CGMA, CCIFP The Inflation Reduction Act of 2022, signed into law on August 16, is designed to address energy, tax, and health policy. The act dramatically increases the Internal Revenue Code (IRC) Section 179D energy-efficient commercial building deduction, making it especially impactful for architecture, engineering, and construction industries and commercial building…
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Home sweet home: Do you qualify for office deductions?
If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely can’t deduct home office expenses under current federal tax law. To qualify for a deduction, you…
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Expenses Related to Making Your Business More Accessible? Learn About the Disabled Access Credit
By: Andrew Uy & Ryan Mink, CPA The Disabled Access Credit allows a credit for small businesses that have expenses related to making their business more accessible to people with disabilities. This includes website accessibility improvements. The credit provides for up to $5,000 in tax credits for a small business. As a reminder, a tax…
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Tax Implications of the Inflation Reduction Act (IRA)
The House of Representatives passed The Inflation Reduction Act (IRA) Friday, August 12, and President Joe Biden sign into law August 16. The legislation, which is a pared-down version of the proposed Build Back Better plan, was passed through the budget reconciliation process and is expected to pay for itself and decrease the budget deficit.…
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How to treat business website costs for tax purposes
These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses can turn to…
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