Most of my clients are taxpayers who own small businesses themselves or file jointly with a spouse who owns a small business. Some of these small businesses are organized as C or S Corporations, and the owners pay federal and state taxes throughout the year through their W-2 wages (based on their set salaries and… [Read More].
Effective January 1, 2024, the tax credit for electric vehicles (EVs) will be available at the car dealership—at the time of purchase. This is very exciting news for those who are considering purchasing an EV. The current process of claiming an EV credit (for a vehicle placed in service during tax years 2023 and before)… [Read More].
The extremely tight margin of the controlling party in the House of Representatives has led to some interesting, historic, and some might say chaotic outcomes on U.S. government operations this year. Legislation involving the basic functions of our government has become significantly more difficult to pass. We narrowly avoided a national debt default this past… [Read More].
Back when I started my career in accounting (circa 2005), CPAs were in love with S Corporations. Tax classification as an S Corporation was highly recommended to almost all small business owners—mostly due to the potential payroll tax savings. At that time, I was working at a small firm of about 30 or so CPAs—and… [Read More].
Since we’re in the midst of tax season, I thought it would be helpful for this month’s blog to provide some information that is timely and useful for taxpayers who have not yet finalized their tax returns. It could also potentially be useful to my early bird clients whose returns are already out the door,… [Read More].
Given that many of you are now in the process of engaging for 2022 tax preparation, for this month’s blog I thought it was important to prepare clients for what to potentially expect for 2022, as compared to 2021. There were many tax benefits that were in place for tax year 2021 (due to the… [Read More].
I hope that everyone reading this article has had a Merry Christmas (or other enjoyable holiday) and a Happy New Year! As we embark upon another tax season as small business owners (as well as a new year of recordkeeping), I just wanted to provide all of my readers with an update on the IRS… [Read More].
Because the vast majority of small businesses operate on the cash basis of accounting (meaning that expenses are deducted when paid), it can be critical from a tax standpoint whether a transaction occurs on December 31 versus January 1. Generally, a transaction that occurs on December 31 (i.e. before the calendar year closes) is reportable… [Read More].
Though Covid-19 will be here for the foreseeable future, to a large degree the gravity of Covid’s effects on small businesses have lessened. Many that were shuttered or experienced revenue declines during the worst of the pandemic have recovered. Covid has had an unequal impact on small businesses—oftentimes due to differences in industry; the level… [Read More].
Last week, Hurricane Ian wreaked havoc upon the states of Florida, North Carolina, and South Carolina. My sincerest thoughts and prayers are with everyone who has experienced loss of life, health, property, and security associated with this hurricane and other recent disasters. Most readers of my blog are aware that I live in North Carolina,… [Read More].