Article Highlights Family Member Transactions Renting to a Relative Below-Market Loans Transferring Home Titles Gifts Basis Life Estate Incorrect Withholding Child Files Incorrect Return When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. The following are some commonly encountered situations and the tax ramifications associated with each. Renting to a Relative When a taxpayer [...]
Article Highlights: Schedule K-2 and K-3 Filing Requirements Background Fast Forward to the Present Domestic Entity K-2/K-3 Filing Exception Partner or Shareholder Notification Where You Play a Role Form 1116 — Foreign Tax Credit Filing Exception Form 1116 Exception Entity Notification There is an important issue related to filing the 2022 S-corporation (Form 1120-S) and partnership (Form 1065) tax returns that requires the cooperation [...]
Article Highlights: De Minimis Fringe Benefits Cash Gifts Gift Certificates Group Meals FICA and Wage Withholding It is common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a fair market value so low that it is impractical and unreasonable to account for it, the gift’s value would be treated as a de [...]
Article Highlights: Solar Credit Home Backup Electric Storage Battery Credit Home Energy Improvement Credit Research Credit Clean Energy Vehicles (New and Used) Credits Standard Deduction Increase Increased Retirement Plan Contributions Other Tax-Related Inflation Adjustments With the holiday celebrations coming to an end, now is the time to take a look at the changes that will impact your 2023 tax return when you file it [...]
Article Highlights: Television Promotions Payroll Tax Credit Applicable Years Qualifications Business Operations Curtailed Significant Decline in Gross Receipts Potential Abuse 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 [...]
There's an old saying that reminds us that there are only two certainties in this life: "death, and taxes." Whoever coined that phrase couldn't have known how true it was, particularly when it comes to the latter portion. The Internal Revenue Service recently came out with its annual Enforcement Report, and the numbers themselves don't lie. In addition to the overall instances of tax [...]
Article Highlights: Employing a Child Child Payroll Taxes FUTA Tax for a Child Child IRA Contributions Child Tax-Free Income Spouses Working in the Same Business Partnership Spousal Joint Venture Spouse Employee Along with the holidays comes a lot of extra work for many family-run businesses, which may require putting the kids to work and having a spouse help out over the busy time. There [...]
Article Highlights: Rough Year for the Stock Market Year End Approaching Annual Capital Losses Are Limited Be Aware of Wash Sale Rules Off-Set Short-Term Gains with Long-Term Capital Losses Planning for Zero Tax on Long-Term Capital Gains Converting a Traditional IRA to a Roth It's been a rough fall for the stock market. So much so that you should probably carefully review your portfolio [...]
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 [...]
Article Highlights: Watch Out for Holiday Gift Scams Gifts with Tax Benefits Gift of College Tuition Qualified Tuition Programs Qualified Charitable Distribution Donor-Advised Funds Work Equipment Employee Gifts Monetary Gifts to Individuals Documentation Timing The holiday season is customarily a time of giving gifts, whether to your favorite charity, family members or others. Some gifts even provide a variety of tax benefits. But be [...]
