Avoid getting caught in the cyber web

While technology continues to revolutionize business industries, its ever-changing nature constantly poses new risks that we must actively protect our businesses against. According to the Better Business Bureau’s Scams and Your Small Business Research Report, the sum of losses for small businesses due to cyberattacks amounts to approximately $7 billion per year (2018). These attackers …

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Spousal consent for retirement plan changes

Many retirement plans require plan participants to obtain spousal consent prior to several events, including change of beneficiary, distributions and loans. Typically, the plans that most frequently require spousal consent for these changes are defined benefit plans, commonly known as pension plans. Defined contribution plans, such as IRAs or 401ks, may also require consent. Change …

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Tax reform for business real estate: self rentals

Under the new tax reform passed in late 2017, Internal Revenue Code Section 199A offers a 20% tax deduction to certain businesses that have qualified business income (QBI). Section 199A was enacted to provide a deduction for pass-through entities such as sole proprietors, trusts, estates, partnerships and S Corporations. Proposed regulations have now been released …

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Section 1231 gains and losses and Section 199A

There are many complex and confusing aspects to the rules regarding the new 199A deduction, and the treatment of 1231 gains and losses are no exception. Before we dive into these transactions as related to 199A, let’s begin at the beginning – what’s a 1231 gain or loss, anyway? In general, a Section 1231 asset …

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Guidance on switching from an S Corp to a C Corp

The recent tax law changes have caused many organizations to re-evaluate their entity structure for tax purposes. Even though C Corporations are still subject to double taxation, the new 21% corporate tax rate is favorable enough that it may entice some entities to make a change. For those entities switching from an S Corp to …

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Tax time: gambling winnings and losses

With the current Mega Millions jackpot at $1.6 billion (you read that right, billion with a B) and the Powerball at $620 million, this massive windfall can pop up in your daydreams. However, not considering the tax consequences of these and all other gambling winnings could make those dreams a little less sweet. In addition, …

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What can SOX do for nonpublic companies?

When you think about the Sarbanes-Oxley Act of 2002 – SOX – Section 404 what comes to mind? Large scale fraud that caused the act? Increased government regulation around financial reporting? Requirement of controls and the disclosure of the assessment of internal controls? One of the last words that might come to mind is efficiency. …

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Section 199A: Calculating the QBI deduction

The Section 199A deduction, also known as the pass-through deduction, will be able to provide significant tax savings to business owners, that is, if they are able to claim it. The provisions and calculations for the deduction are very complicated. At its simplest, the deduction is 20% of qualified business income, QBI (ordinary business income, …

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QBI deduction: de minimis rules related to SSTBs

With the new proposed regulations for Section 199A regarding the 20% tax deduction for Qualified Business Income (QBI), there have been many concerns and questions, especially since this deduction isn’t available to owners who have more than $315,000 of taxable income and have income from a business that is considered a Specified Service Trade or …

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Form 5500: What you need to know

Form 5500 is an annual return/report that employee benefit plans are required to file with the Department of Labor’s (DOL) Employee Benefit Security Administration (EBSA) division. Employee benefit plans subject to Employee Retirement Income Security’s Act (ERISA) standards are required to file Form 5500 on an annual basis. This report serves to satisfy necessary disclosures, …

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