Blog
Do you need to pay taxes when you win a settlement or lawsuit award?
If you’ve recently received a settlement or award from a lawsuit, or you’re expecting one, you may be wondering how the IRS views this money. Will you need to pay taxes on it? The short answer: It depends on the type of damages you received. Understanding the basic rules can
What Happens to Debt After a Person Dies?
One question the family of a deceased person often asks is: What happens to debt after a person dies? It’s important to realize that a person’s debt doesn’t simply vanish after his or her death. An estate’s executor or beneficiaries generally aren’t personally liable for any debt. The estate itself
Have You and Your Spouse Coordinated Your Estate Plans?
When it comes to estate planning, married couples often assume that simply naming each other in their wills or designating each other as beneficiaries is sufficient. However, unintended consequences can result if you and your spouse fail to properly coordinate your estate plans. Examples include conflicting provisions, unexpected tax consequences
Tips Reporting Property, Plant, and Equipment (PPE) Assets
Under U.S. Generally Accepted Accounting Principles (GAAP), property, plant and equipment (PPE) assets aren’t immediately expensed. Instead, they’re capitalized on your company’s balance sheet and gradually depreciated over their useful lives. While that sounds easy enough, subtle nuances may trip up small businesses. Here are some tips to help get
Can You Deduct Business Travel?
If you or your employees are heading out of town for business this summer, it’s important to understand what travel expenses can be deducted under current tax law. To qualify, the travel must be necessary for your business and require an overnight stay within the United States. Note: Under the
Tax & Legislative Update “One Big Beautiful Bill Act”
Congress is currently debating a sweeping piece of legislation titled the One Big Beautiful Bill Act (H.R. 1), which carries major implications for both individuals and businesses. While the bill has already passed in the House, the Senate is actively reviewing it and just passed its tax plan version with a
What to Know About Harvesting Capital Losses as a Tax-Saving Strategy
Stock, mutual fund and ETF prices have bounced around lately. If you make what turns out to be an ill-fated investment in a taxable brokerage firm account, the good news is that you may be able to harvest a tax-saving capital loss by selling the loser security. However, for federal
Estimating Fair Value
Many balance sheet items are reported at historical cost. However, current accounting standards require organizations that follow U.S. Generally Accepted Accounting Principles (GAAP) to report certain assets and liabilities at “fair value.” This shift aims to enhance transparency and reflect an entity’s current financial position more accurately. However, estimating fair
Beware of the 100% Penalty
Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person. It’s called the
Hiring Your Child Can Provide Your Business Tax Savings
With summer fast approaching, you might be considering hiring young people at your small business. Did you know that hiring your children can help you save on family income and payroll taxes? It's a win-win situation for everyone! Here are three tax benefits. 1. You can transfer business earnings Turn