Corporate Transparency Act – Beneficial Ownership Information Reporting Requirements
Small business owners – get ready for new non-tax disclosure requirements coming in 2024 – with steep noncompliance penalties. In 2021, Congress enacted the Corporate Transparency Act (CTA) that mandates new reporting by small businesses to combat money laundering. The new disclosure form will be required by the end of 2024 for existing entities and within 30 days of formation…
Read MorePlanning for Section 174 in Uncertainty
A year ago, we published an article Will Companies Expense R&D Again? - Hughes Pittman & Gupton, LLP (hpg.com) and I remember thinking, with the bipartisan support that it had at the time to defer or repeal the requirement to capitalize research and development (“R&D”) costs, it felt absurd to write a warning that there may not be a fix for this issue by the end of …
Read MoreMidyear Tax Planning for Small Businesses and Owners
Summer isn't just for barbeques and baseball. It's also a good time to think about ways to cut your 2023 business tax bill. Here are four planning ideas for small business owners to consider, assuming there won't be any changes to current federal tax laws at least through 2024. 1. Establish a Tax-Favored Retirement Plan If your business doesn't already have a retirement plan, now might …
Read MoreTen Tax Breaks for Military Families
As this month of June ushers in the 79th anniversary of D-Day which was the largest naval, air and land operation in history, at that time, and signified the beginning of the end of World War II, it is apt to honor our military members and highlight a few tax breaks available to service members serving here and abroad. 1. Combat Zone Exclusion Generally, income earned from e…
Read MoreWays to Secure Your Estate Plan
Estate planning isn't just for the rich and famous. For example, you may have family heirlooms (such as jewelry or artwork) or real property that has sentimental value to certain family members. Wills and trusts can help ensure that your estate is divvied up fairly after your passing. But you won't be around to explain or interpret your estate plan when it's triggered. So, your will and ot…
Read MoreNavigating the SALT Deduction
The Tax Cuts and Jobs Act (TCJA) limits itemized deductions for state and local tax (SALT) payments for 2018 through 2025. This unfavorable tax law change is especially unpopular in states with high income or property taxes (or both). The limitation remains in effect, despite repeated calls to repeal it. Fortunately, there may be ways to maximize your annual deduction if you keep a close …
Read MoreIs “Cost Plus” the Right Transfer Pricing Model for Your Company?
By: Michael Arena When multinational groups have an entity performing a service that benefits another entity, it has become increasingly common for the service-providing entity to be remunerated for its costs plus a profit markup. This arrangement is often referred to as a “cost plus” model. In fact, these arrangements have become so popular that the rate of misuse has increas…
Read MoreClock Winding Down for Congress to Delay New Rules for R&D Expenses
“March Madness” has a special meaning amongst the basketball-loving business owners and taxpayers of the Triangle. This year, it also describes the angst that CPA firms and their clients are facing as severe new tax rules governing taxpayers’ “Research and Development” activities come into effect. If you are thinking – “our Company doesn’t do…
Read MoreChanges in Research & Experimentation Costs - Capitalization and Amortization
By Donna Holm Background Since 1954, businesses that incurred R&E expenses under IRC §174 have been able to deduct them as paid or accrued. Unfortunately, the Tax Cuts and Jobs Act (TCJA) of 2017 changed this for tax years starting in 2022. While we expected that R&D amortization would be done away with or at least delayed, the time has come to start planning. The…
Read MoreTax Reporting for Larger Gifts or Inheritances from Foreign Persons
By: Ranju Poudel All inheritances and gifts received by U.S. persons from foreign persons that exceed $100,000 in a calendar year are reportable to the IRS on Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. The amount and description of the bequest must be disclosed. However, the IRS does not require disclosure of the identity…
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