September 2022: IRS urges everyone to update and secure their records to prepare now for natural disasters September is National Preparedness Month. With the height of hurricane season fast approaching and the ongoing threat of wildfires in many places, the Internal Revenue Service urges everyone to develop an emergency preparedness plan, or if they already […]
Section 529 plans (named after the IRS Code Section) allow individuals to set up an account on behalf of another individual (typically a child or grandchild) that can be used to pay college expenses. Section 529 plan rules also allow for up to $10,000 per year to be applied toward private elementary or secondary school […]
Question: Does my child have to file a tax return? Answer: If you or someone else claims your child as a dependent, your child will need to file a 2021 return if he or she has: 1) Earned income from wages of more than $12,550.2) Earned net income from self-employment (from a paper route, for […]
Succession planning Succession planning can be one of the most difficult issues faced by a family-owned business. As a business owner nearing retirement, how do you transfer leadership (and perhaps ownership) and keep the business running smoothly? Unfortunately, many businesses don’t survive the transition to the next generation. As with most business problems, good planning […]
Too often taxpayers receive tax surprises at year-end due to actions taken by mutual funds they own. What can add insult to injury is the unsuspecting taxpayer who recently purchases the shares in a mutual fund only to be taxed on their recent investment. How does this happen and what can you do about it? […]
Employee Theft Employee theft happens frequently enough for it to be a concern of every business. It makes no difference whether your business is a one-employee medical office or a forty-employee retail outlet. Absentee business owners should be even more alert to the problem of employee theft. Busy managers find it easy to turn the […]
Contractors: control costsControlling overhead costs is critical for all construction managers. Increased competition and slim profit margins have forced contractors to take a hard look at overhead cost management. Budgeting and variance analysis Technological changes have made budgeting systems, planning, and control techniques available to all contractors. Budgeting allows contractors to evaluate current operations, assess […]
Originally named education IRAs, these accounts are now called Coverdell education savings accounts. An education savings account is a custodial savings account created to pay for a child’s school expenses at any accredited college, university, or vocational school. The funds can also be used for elementary and secondary (K-12) school expenses at public, private, or […]
You might be surprised by the answer. Question: If a debt I owe is canceled, is that income to me? Answer: Cancelled debt is included in income unless it is specifically excluded by some provision in the tax code. Thankfully, certain types of debt forgiveness are generally excluded from income (e.g., discharge in bankruptcy under Title 11, […]
Question: When is my hobby considered a business? Answer: The IRS is suspicious of any business activity that looks like it provides personal enjoyment, such as antiques, photography, horse racing, etc. If you make a profit in any three out of five consecutive years (two out of seven years for horse activities), your activity is […]