Holiday parties and gifts can help show your appreciation and provide tax breaks

| Tax Briefs

With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand the tax rules associated with these expenses. Are they tax deductible by your business and is the value taxable to the recipients? Customer and client gifts If you make gifts to customers and clients, the gifts are deductible up to $25 per recipient per Read more [...]

Using your 401(k) plan to save this year and next

| Tax Briefs

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year-end. Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather than later can have a significant impact on the Read more [...]

Take advantage of the gift tax exclusion rules

| Tax Briefs

As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For 2019, the exclusion is $15,000.   The exclusion covers gifts that you make to each person each year. Therefore, if you have three children, you can transfer a total of Read more [...]

IRA charitable donations are an alternative to taxable required distributions

| Tax Briefs

Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. IRA distribution basics A popular way to transfer IRA assets to charity is through a tax provision that allows IRA owners who are 70½ or older to give up to $100,000 per year of their IRA distributions to charity. These distributions are called qualified charitable distributions, Read more [...]

States may now collect sales tax from out-of-state sellers

| Alerding Alerts, Business Miscellaneous

The U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair overturned the long-standing precedent that prevented states from collecting sales taxes from online and remote sellers unless they had a physical presence in the state. Instead, the court, under Wayfair, introduced an economic nexus test based on the sellers’ sales volume into each state. States may now impose sales-tax collection obligations on online and remote sellers that conduct more than $100,000 in sales or more than Read more [...]

When is tax due on Series EE savings bonds?

| Tax Briefs

You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed. And if they reach final maturity, you may need to take action to ensure there’s no loss of interest or unanticipated tax consequences.   Interest deferral   Series EE Bonds dated May 2005 and after earn a fixed rate of interest. Bonds purchased between May 1997 and April Read more [...]

FASB votes to delay effective date for lease standard

| Alerding Alerts, Business Miscellaneous, Financial

The effective date of FASB’s standard on accounting for leases will be delayed for private companies and certain other entities after a unanimous vote Wednesday by FASB. FASB directed its staff to draft an Accounting Standards Update (ASU) that will change the effective date and be issued following a formal written ballot by the board, which is expected to take place in November. Under the ASU, the effective date is delayed one year to fiscal years beginning after Dec. 15, 2020. Early-adoption Read more [...]

Understanding and controlling the unemployment tax costs of your business

| Business Briefs, Tax Briefs

As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42. Tax credit Unlike FICA taxes, only employers — and Read more [...]

Dashboard reports help analyze results

| Audit and Accounting

By Chris Mennel, CPA & Tyler Hayes     Data, data, data!  Nonprofits and for-profits alike have more data than ever to track, understand and utilize in carrying out their goals.  It’s easy to quickly become overwhelmed. To help get the process started, consider creating dashboards. Dashboards are short (normally one page) graphical representations of data that can provide the key measurements to make informed decisions. They can show program results, financial results, or any other Read more [...]