In order to be tax-deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. What does that look like in practical terms? Rule #1 - Remember that you and your business are…
How long should I keep my tax return? How long do I need to keep backup documentation for my business purchases? These are questions we hear all the time, which is why we've put together this Records Retention Guide for Business Documents. It goes hand in hand with our Records Retention Guide for Business Taxes as well as our Records…
Beneficial ownership information (BOI) reporting is required for most businesses in 2024. It's part of the US government's efforts to make it harder for criminals to hide through shell companies or other opaque ownership structures. How to Report Reporting is done through the BOI E-Filing website, which opened January 1, 2024. Companies in existence before 2024 will have until January 1,…
The rules regarding required minimum distributions (RMDs) have been somewhat flexible over the past few years due to the pandemic as well as SECURE Act 2.0 which passed at the end of 2022. Here's some recent guidance and clarification from the IRS that affects account owners whose first RMD was in 2023: First, some background info . . . Traditional…
As the end of 2023 quickly approaches, it's time for businesses to start gathering data that needs to be reported on Forms W-2. Here's a list of things to be aware of: Personal Use of Company Vehicles - If your employees drive a company-owned or leased vehicle and use it for personal reasons, you'll need to account for that as…
We recently met with our friends at Stephens Real Estate. We enjoyed fielding questions and providing information on several topics. Some of these had accompanying resources we have linked below. These are, of course, general resources. Contact your tax professional for guidance associated with your specific circumstances. Small Business Expensing under Code Section 179 Business Tax Deductions You Might Miss…
Different types of contributions require different types of recordkeeping. If you want to deduct charitable contributions, you need to substantiate those deductions with good records. Here are the requirements for different types of contributions: Cash Contributions This includes donations made using all forms of cash and cash equivalents - cash, checks, electronic transfer, online payments, debit cards, credit cards, payroll…
To download a handy chart of 2023 dollar limits for employee benefit plans and various tax items, click on the link below: 2023 Dollar Limits Flyer
You've probably seen or heard the phrase ‘student loan crisis’ in the news recently, along with a lot of discussion about whether all or a portion of federal student loans should be forgiven. It’s no surprise student loans have become a popular topic, as the total amount owed by the American public has soared in recent years. How Much Debt…
You may have noticed that gas prices are climbing. And climbing. And climbing. And where they'll stop, nobody knows . . . ? Our friends at the IRS are paying attention. They've increased the standard mileage rates for the rest of 2022. These mileage rates can be used to value deductible expenses when you drive for business, medical, or moving…