Every year legislators twist and tweak tax laws, leaving the average citizen scratching his head when faced with financial decisions such as selling an investment property or claiming a tax deduction for a home office. Accounting firms stay abreast of the new tax laws, and many offer financial advice and help individuals and small businesses develop budgets and set financial goals. Whether you need someone to handle weekly payroll or you just want reliable tax advice, hiring a professional always works in your favour.

Managing taxes of a small business has got to be the most tiring task, but beyond it lies the glory. Once you have taken care of the finances, everything else tends to fall into place as it removes the obligation from your mind.

Whether a start-up or a growing business, you need a trusted advisor to assist you with your financial and business needs. They also help prepare taxes, as doing it yourself can be difficult and time-consuming.

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Article Highlights: Trading in a Vehicle Selling a Vehicle Gifting a Vehicle Donating a Vehicle to Charity If you are buying a new car, are you wondering what to do with the old one? You actually have a number of options, some of which have tax implications and some of which don’t. These options include trading the car in with the dealer, selling it to a third party, donating it to a charity, gifting it to someone, or even keeping it as a second car. Here are the details for each. Note: This article does not discuss in detail how to treat the disposition of…

Teachers and education administrators can benefit from a special tax deduction for education expenses that are not reimbursed. Watch this video to learn more.

Article Highlights: SSA Name Change IRS Address Change Postal Service Address Change Tax Withholding Tax Filing Status Marrying A Non-resident Alien Joint and Several Liability Beware of Tax Scams Most weddings planned for 2020 were delayed because of COVID, causing a big upswing in the number of weddings in 2021. Although tax issues are the furthest thing from their minds during this big life-changing event, newlyweds should know how tying the knot can affect their tax situation. There are actions they need to take to avoid problems and unfortunate tax surprises. If you are newly married, here’s a checklist of “to do’s” to help you: SSA Name Change - When…

Article Highlights: Filing Requirements Changing Filing Status Social Security Benefits Traditional IRA Deductibility Roth IRA Contribution Restrictions Higher Education Interest Deduction Itemized Deductions Medicare Premiums Child & Dependent Care Credit Earned Income Tax Credit (EITC) Premium Tax Credit (PTC) Tax Rates Other Limitations Married taxpayers have two options when filing their 1040 or 1040-SR tax returns. The first and most frequently used filing status is married filing joint (MFJ), where the incomes and allowable expenses of both spouses are combined and reported on one tax return. The joint status almost always results in the lowest overall tax. Spouses who file together are jointly liable for the tax, meaning either or both can be held…

Article Highlights: What Is a SEP? Contribution Limits Employee Coverage Requirements How to Establish a SEP SEP Distributions Like many small business owners, you probably find yourself very busy in the wake of the COVID slowdown and are getting back up to speed. But don’t forget about your future. There are a number of retirement plans available, including Keogh plans and 401(k)s. However, a simplified employee pension plan (SEP) may be your best option. The reason a SEP is “simplified” is that its retirement contributions are deposited into a traditional IRA account under the control of the SEP participant, thus eliminating most of the employer’s administrative duties. That…

Cash flow has always been a challenge for restaurants, and before COVID-19 changed everything there were thousands of articles written about the importance of forecasting, streamlining overhead, and controlling inventory. But more than a year-and-a-half into the pandemic, more than 110,000 restaurants have closed their doors permanently. Those restaurants that survived (and even thrived) in the face of closures, reduced seating, and staffing shortages went beyond traditional cash flow strategies, finding ways to reduce costs, expand sales, and pivot their entire menu. With reports of variants squashing hopes of a true return to normal, here are some of the cash…

Summer is full of activities and life-changing events. But did you know that some of those activities can make a difference to your tax return next year? Watch this video for some quick tips. Printable PDF

Identity theft is a crime that is on the rise, in both number and their fraudulent technique. Watch this video and learn how to protect yourself and your family before it's too late. Printable PDF

October 15 - Corporations File a 2020 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension by April 15. October 15 - Social Security, Medicare and withheld income tax If the monthly deposit rule applies, deposit the tax for payments in September. October 15 - Nonpayroll Withholding If the monthly deposit rule applies, deposit the tax for payments in September. Printable PDF

October 12 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the…

Article Highlights: PTIN Requirements CPAs, EAs, and Attorneys State Regulations American Families Plan Taxpayer Protection and Preparer Proficiency Act Anyone preparing a tax return for compensation must have a PTIN issued by the IRS, but there are no requirements associated with obtaining a PTIN—no advance training, no continuing education, and no ethical standards to abide by. On the other hand, CPAs, enrolled agents (EAs), and attorneys have strict ethical standards, educational or testing requirements, and continuing education requirements that keep them up to date with the latest tax-law changes. While some states require paid preparers to register and pay a fee, only California and Oregon have comprehensive…

Here are five things that happened this past month that affect your small business. 1) The G20 backed historic corporate tax reform at the latest summit. Another step forward for proponents of a global corporate minimum tax: At the first face-to-face G20 meeting since the start of the pandemic, “a landmark proposal to stop multinational companies from shifting profits to low-tax havens was endorsed.” (Source: Yahoo! Finance) Why this is important for your business: Companies with international operations would see changes to their taxation under this proposal ¬– but it’s still a long way from being adopted. Stay tuned. 2) The US recession actually lasted…

Article Highlights: October 15 is the extended due date for filing federal individual tax returns for 2020. Late-filing penalty Interest on tax due Other October 15 deadlines The normal April 15, 2021 filing deadline for 2020 individual tax returns was extended by the IRS to May 17, 2021, due to the continuing Covid-19 pandemic. If you could not complete your 2020 tax return by May 17 and are now on extension, that extension expires on October 15, 2021. Failure to file before the extension period runs out can subject you to late-filing penalties. There are no additional extensions (except in designated disaster areas), so if you…

Though it’s natural for management to focus on its profit-making areas, the importance of a sound accounting foundation to support the operation cannot be overemphasized. The more diligent and meticulous your accounting team is, the more easily the rest of the organization can function and grow. If the system you currently have in place is relying on charts of accounts that are sloppily maintained and leading to delays or penalties regarding tax liabilities, that’s where your initial attention needs to be placed. Focus on the chart of accounts first, no matter how tempting it is to worry about the fees…

Article Highlights: Income as a Factor Filing Status as a Factor 85% Maximum Taxable Base Amounts Deferring Income Maximizing IRA Distributions Gambling Gotcha Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For this discussion, the term “Social Security benefits” refers to the gross amount of benefits you receive (i.e., the amount before reduction due to payments withheld for Medicare premiums). The tax treatment of Social Security benefits is the same whether the benefits are paid due to disability, retirement or reaching the…

Article Highlights: Increase in Corporate Tax Rate Increase in Top Marginal Individual Income Tax Rate Increase in Capital Gains Rate for Certain High-Income Individuals Deduction for Certain Employee Trade or Business Expenses Application of Net Investment Income Tax to Trade or Business Income Limitation Qualified Business Income Deduction Limitations on Excess Business Losses of Noncorporate Taxpayers Surcharge on High-Income Individuals, Trusts, and Estates Termination of Temporary Increase in Unified Credit Estate Tax Valuation for Real Property Used in Farming Certain Tax Rules Applicable to Grantor Trusts Valuation Rules for Certain Transfers of Nonbusiness Assets Contribution Limits for Individual Retirement Plans Increase in Minimum Required Distributions Limiting Back Door IRA Conversions Statute of Limitations with Respect to…