Late entity classification: IRS guidance

We have often seen clients struggle with their decisions as to what type of tax entity classification they should choose for their businesses. Sometimes business owners or shareholders may decide to change their business’s entity classification after the business has operated for one or more years. These changes may be due to several reasons such …

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Tax rules for selling your home

Now that the housing market is beginning to rebound, you may be considering putting your current personal residence on the market. But what do you need to know before you call your real estate agent? First, does the residence qualify as your “main” home? And secondly, will the sale result in a gain or a …

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Gaining favor among customers by absorbing sales tax

Like the rest of us, state governments want the money that is owed to them. In a growing trend, however, states are caring less about who is paying the money. Forty-five states and D.C. have sales tax requirements. It used to be the law that a seller with nexus must collect the tax from the …

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Gifting your assets: give or keep

When faced with the question of gifting your assets, there are multiple variables to consider. Keeping an asset causes it to be included in the estate of the deceased for estate tax purposes, whereas gifting an asset allows its future appreciation to grow outside of the estate with its intended beneficiary, possibly saving large amounts …

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Is your gift taxable?

If you gave money or property to someone as a gift, you may owe federal gift tax. Many gifts are not subject to the tax, but there are exceptions. Here are eight tips provided by the IRS that you can use to figure out whether your gift is taxable. 1. Most gifts are not subject …

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What you need to know before selling gifted property

Before you sell property that you received as a gift, ask yourself the following questions: Does the property provide a good yield? How does this property fit into my investment portfolio? What are the short and long-term market outlooks for this property? Do I need the money? Has the property appreciated in value? What are …

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The SECURE Act and its potential impact on your retirement

On May 23rd, the House of Representative passed the SECURE (Setting Every Community Up for Retirement Enhancement) Act. While this bill may or may not pass, it is important to realize the key implications it can have on your future. Some major features of the Act include: Greater opportunity for part-time workers to participate in …

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What to know about 457 plans

Taxes relating to 457 plans can be confusing for tax exempt entities. Here are some key points to know: 457b and 457f plans are deferred compensation retirement plans that are offered to a select group of higher compensated or key management employees in a tax exempt entity. Both employees and employers can make contributions to …

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Productivity, efficiency, effectiveness: what does it all mean?

As auditors, accountants, and employees we often hear these three adjectives used interchangeably to describe a desired change among work processes and organizations. As a government auditor, we have gone through lots of CPE and conferences over the last few months. These conferences often have motivational speakers that try to point out one or two …

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Filing as a subchapter S corporation

If you are thinking about starting a business, one of the first decisions that you will face is determining what kind of entity to use for the business. Many simple businesses can be operated as a sole proprietorship, with the income and expenses reported directly on the Form 1040. However, if there is more than one …

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