The tax deduction ins and outs of donating artwork to charity

| Tax Briefs

If you’re charitably inclined and you collect art, appreciated artwork can make one of the best charitable gifts from a tax perspective. In general, donating appreciated property is doubly beneficial because you can both enjoy a valuable tax deduction and avoid the capital gains taxes you’d owe if you sold the property. The extra benefit from donating artwork comes from the fact that the top long-term capital gains rate for art and other “collectibles” is 28%, as opposed to 20% for most other Read more [...]

The IRS Releases Interim Guidance for Business Meals

| Alerding Alerts

Before the Tax Cuts and Jobs Act, taxpayers generally could deduct 50% of expenses for business-related meals and entertainment. But meals provided to an employee for the convenience of the employer on the employer’s business premises were 100% deductible by the employer and tax-free to the recipient employee. Under the new law, for amounts paid or incurred after December 31, 2017, the deduction for business-related entertainment, amusement, or recreation are disallowed completely.  However, Read more [...]

Tax planning for investments gets more complicated

| Tax Briefs

For investors, fall is a good time to review year-to-date gains and losses. Not only can it help you assess your financial health, but it also can help you determine whether to buy or sell investments before year-end to save taxes. This year, you also need to keep in mind the impact of the Tax Cuts and Jobs Act (TCJA). While the TCJA didn’t change long-term capital gains rates, it did change the tax brackets for long-term capital gains and qualified dividends. For 2018 through 2025, these brackets Read more [...]

Alerding CPA Group named to inaugural IPA Top 400 accounting firms in the nation

| Business Miscellaneous, News

FOR IMMEDIATE RELEASE (INDIANAPOLIS) – The directors of Alerding CPA Group, an Indianapolis-based certified public accounting firm, are pleased to announce that the firm has been named to INSIDE Public Accounting’s (IPA) inaugural Top 400 firms in the country. IPA 400 firms are ranked by U.S. net revenues and are compiled by analyzing responses received from its annual surveys completed by firms across the country. Unlike firms on the IPA 300 list, IPA 400 firms range in size from $4.55 Read more [...]

HSA + HDHP can be a winning health benefits formula

| Business Briefs

If you’ve done any research into employee benefits for your business recently, you may have come across a bit of alphabet soup in the form of “HSA + HDHP.” Although perhaps initially confusing, this formula represents an increasingly popular model for health care benefits — that is, offering a Health Savings Account (HSA) coupled with, as required by law, a high-deductible health plan (HDHP). Requirements An HSA operates somewhat like a Flexible Spending Account (FSA), which employers Read more [...]

Play your tax cards right with gambling wins and losses

| Tax Briefs

If you gamble, be sure you understand the tax consequences. Both wins and losses can affect your income tax bill. And changes under the Tax Cuts and Jobs Act (TCJA) could also have an impact. Wins and taxable income You must report 100% of your gambling winnings as taxable income. The value of complimentary goodies (“comps”) provided by gambling establishments must also be included in taxable income as winnings. Winnings are subject to your regular federal income tax rate. You might Read more [...]

Choosing the right accounting method for tax purposes

| Business Briefs, Tax Briefs

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either accounting method, it pays to consider whether switching methods would be beneficial. Cash vs. accrual Generally, Read more [...]

The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible

| Tax Briefs

Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But what if you convert your traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover you would have been better off if you hadn’t converted it? Before the Tax Cuts and Jobs Act (TCJA), you could undo a Roth IRA conversion using a “recharacterization.” Effective with 2018 conversions, the TCJA prohibits recharacterizations — Read more [...]

The tax impact of the TCJA on estate planning

| Tax Briefs

The massive changes the Tax Cuts and Jobs Act (TCJA) made to income taxes have garnered the most attention. But the new law also made major changes to gift and estate taxes. While the TCJA didn’t repeal these taxes, it did significantly reduce the number of taxpayers who’ll be subject to them, at least for the next several years. Nevertheless, factoring taxes into your estate planning is still important.   Exemption increases   The TCJA more than doubles the combined gift and estate tax Read more [...]