Taxation of market discount bonds clarified

In guidance that became applicable as of January 1, 2018, the IRS has recently clarified that section 451(b) of the new Tax Cuts and Jobs Act (TCJA) does not apply to market discount bonds as some taxpayers and tax practitioners had feared. A market discount bond is fairly common and one in which a taxpayer …

Keep Reading

10 holiday shopping tips to shop wisely, protect your info

The holiday shopping season is in full swing. Whether you’re hitting the retail stores or doing all your shopping online, you want to shop wisely and protect your personal information. The FTC has a few holiday shopping tips to help you. Make a list (and check it twice!) as well as a budget. This will …

Keep Reading

What is money laundering?

Crime is big business both domestically and across the globe and, as a result, money laundering activities are extensive. In fact, the United Nations Office of Drugs and Crime reports that “[t]he estimated amount of money laundered globally in one year is 2% – 5% of global GDP, or $800 – $2 trillion in current …

Keep Reading

First time audit expectations, preparation and planning

Recently, I read an article that the Pentagon failed what is being called its first-ever comprehensive audit. While the auditors did not note any instances of fraud from the audit, it uncovered several matters the Pentagon must work to address. The Defense Department was not surprised by this as they never expected to pass it …

Keep Reading

IRS per diem rates 2019 for business travel expenses

The IRS recently announced the updated per diem rates for taxpayers’ usage of meals, lodging and incidental expenses while traveling for business. The rates became effective October 1, 2018. To begin, let’s clarify the usage of per diem rates. A company chooses to use per diem for travel as an alternative to reimbursement based on …

Keep Reading

Office-in-the-home deduction limitations for S Corporation shareholder-employees

Twenty-five years ago, Congress enacted a law prohibiting the deduction of expenses related to the rental of a portion of one’s home to their employer. The law was enacted in response to a Supreme Court decision allowing a CPA to offset rents received from his employer with the deduction of insurance, utilities, city charges, pest …

Keep Reading

Annual gift tax exclusion amount released

The IRS has released the annual gift tax exclusion. For 2018 and 2019, the amount is increasing to $15,000. What does this mean for gifts you make? Each year, you can gift up to $15,000 per person before the gift is considered taxable and without being required to file a gift tax return (Form 709). …

Keep Reading

Tax challenges for 2019 as tax pros help clients

Good tax preparers naturally want to help their clients no matter what challenges they must face in doing so, but this upcoming tax season will be especially daunting as the tax challenges for 2019 just keep piling up. Of course, the big one for this upcoming tax season is the massive tax overhaul also known …

Keep Reading

Valuing your business: the impact of company specific risk

When valuing a business using an income approach, a valuation analyst will develop a discount rate or capitalization rate to apply to the expected ongoing income or cash flows of the Company. The discount or capitalization rate (cost of capital) is essentially a rate of return expected by the potential buyer for the investment in …

Keep Reading

The benefits of timely financial reporting

It’s the holiday season – you’re busy, your staff is busy, life is full of interruptions, and for you December 31 ending governments out there, you’ve still got to close your books at year-end. There’s only so much time between your actual year-end, when your entity is really performing closing entries to begin your annual …

Keep Reading