When planning major equipment purchases, business owners often face a crucial tax planning decision: whether to make the purchase this year or the next. This decision primarily revolves around several key factors, with the most significant being the tax rate differential between the two years. When tax rates are equivalent or similar, the decision becomes […]

QuickBooks Desktop was a revolutionary product for small businesses, dating back to the 1990s. This product still inspires strong loyalty. However, its cloud-based alternative, QuickBooks Online (QBO), launched about a decade ago, has been gaining traction despite initially mixed reviews. Many users remain loyal to the desktop version, citing its more intuitive interface and perceived […]

Receiving a cash settlement from a medical malpractice case can be a huge relief after what is usually a long and protracted process. But before you spend it, make sure you’re aware of any tax impacts it may have. The good news is that most of the payment will most likely not be taxable. A […]

Making generous gifts to others isn’t just about sharing your abundance with others – it’s also smart estate planning. But if you don’t follow the rules, you – or your estate – could face an expensive gift tax bill. Here’s what you need to know about gifting. The recipient doesn’t pay tax on the gift […]

An important aspect of tax compliance for business owners is the requirement to file a 1099 for certain payments made during the normal course of business.  If you are a business owner, below is a summary of what you need to know. What is a 1099? A 1099 is an IRS form that tells the IRS who […]

Making the switch from employee to business owner requires some getting used to. One of those adjustments is understanding the difference between the income reported on a K-1 and the amount of cash distributions received. Let’s look at some of the reasons why this happens. Taxable income is not always the same as cashflow When […]

Owning your own business can provide opportunities to reduce taxes that you might not necessarily have as an employee, and the best place to start is to convert personal expenses that you would otherwise incur to legitimate business expenses. Below is a summary of some of the most common personal expenses that can be converted […]

What is an Enrolled Agent? Although no formal credentials are required to work as a tax preparer in the U.S., hiring one with a professional license protects your interests. Besides the obvious choice of hiring a CPA, an Enrolled Agent, or EA, is another option. Enrolled Agents are licensed at the federal level by the […]

On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law.  The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes several unfavorable provisions intended to offset the loss of tax revenue likely to result from […]

Municipal bonds are very appealing to investors because of one important attribute: municipal bond interest is exempt from federal income tax. But while tax-free income sounds great, there is a catch!  The interest an investor can earn on municipal bonds is generally lower than the interest an investor can earn on a comparable taxable corporate […]