There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It's also important to notify the IRS of their plans.
Charitable remainder trusts are irrevocable trusts that let you donate assets to charity and draw annual income for life or for a specific time period.
We closely examine charitable remainder trusts to ensure they:
In a charitable remainder trust:
Did you know that there is a Taxpayer Bill of Rights to help protect all taxpayers?
Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary. Taxpayers can also expect that the IRS will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.
This tax court ruling shows how important it is you have a tax advisor that is well versed in business returns.
Many people work for a family member, whether it's a child helping out at their parent's shop or spouses running a business together. When someone is employed by a family member, the tax implications depend on the relationship and the type of business. It's important for taxpayers and employers to understand their tax situation.
I sometimes run into clients who have to take large distributions from their traditional IRAs and it bumps them into higher tax brackets even though they don't really need the money to live on. Here is one solution to avoid some of that taxation and do some good for the world.
IRA owners age 70½ or older have an option to transfer up to $100,000 to a qualified charitable organization (QCD) each year. For taxpayers born after June 30, 1949, the SECURE Act raised the required beginning date (RBD) for required minimum distributions to age 72. However, eligibility to make a qualified charitable distribution (QCD) remains at age 70½, regardless of the taxpayer’s required beginning date.
One of the most common questions I get from people opening a business for the first time is, 'How do I deduct all of the many expenses incurred before the business actually opens its doors?' Most of these can be handled as either start-up expenses or organizational expenses. You can think of organization expenses as creating the paperwork part of a business and start-up expenses as setting up the physical structure of a business.
Business start-up expenses are those incurred for investigating or creating an active trade or business and the cost must meet these two requirements:
The Consolidated Appropriations Act (CAA), 2023 that just passed Congress includes the retirement package, SECURE 2.0. Here are the major changes that can affect you and/or your small business:
The Saver's Credit is becoming the Saver's Match for tax years beginning after December 31, 2026
The retirement savings contributions credit (aka saver’s credit) is being repealed and replaced with a new “saver’s match.” The saver’s match will be paid in the form of a contribution to the taxpayer’s IRA or retirement plan, instead of a non-refundable tax credit as it is now.