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Holiday Giving: Use the Annual Gift Tax Exclusion and Reduce Your Taxable Estate
With the holidays approaching, you might be considering making gifts of stock or cash to family members and other loved ones. By using the annual gift tax exclusion, those gifts — within generous limits — can reduce your taxable estate. Indeed, in 2023, the annual gift exclusion amount is $17,000
FASB Approves Updated Rules for Disclosing Income Taxes
On August 30, 2023, the Financial Accounting Standards Board (FASB) unanimously voted to finalize its proposed improvements to the disclosure rules for income taxes. Here’s what’s changing and when those changes are effective. Rate Reconciliation Under the updated guidance, companies will be required to provide a breakout of amounts paid for
DWC Professional Attains QuickBooks ProAdvisor Certifications
Tessa Patterson DWC CPAs and Advisors is pleased to announce bookkeeper Tessa Patterson recently attained QuickBooks ProAdvisor Desktop and Online Certifications. QuickBooks ProAdvisor certifications are recognized as industry-standard qualifications that validate proficiency in accounting software usage and best practices. Certified professionals can provide accounting and bookkeeping clients with
What is the General Business Credit?
Tax credits are far more valuable than tax deductions. Unlike a deduction, which reduces a business’s taxable income, a credit reduces the business’s tax liability dollar for dollar. Tax credits aren’t unlimited, however. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC),
Avoid Tax Surprises from Your Investment Swings
If your investments have fluctuated wildly this year, you may have already recognized some significant gains and losses. But nothing is decided tax-wise until year end when the final results of your trades will reveal your 2023 tax situation. Here’s what you need to know to avoid tax surprises. Tax-Favored
Pros and Cons of Minor Custodial Accounts
Setting up an investment account for your minor child can be a tax-efficient way of saving for college or other expenses. And one of the simplest ways to invest on your child’s behalf is to open a custodial account under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers
What types of expenses can’t be written off by your business?
If you read the Internal Revenue Code, you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule
Are Shareholder Advances Classified as Debt or Equity?
From time to time, owners of closely held businesses might need to advance their companies money to bridge a temporary downturn or provide funds for an expansion or another major purchase. How should those advances be classified under U.S. Generally Accepted Accounting Principles (GAAP)? Depending on the facts and circumstances
Offset Nursing Home Costs with Possible Tax Breaks
If you have a parent entering a nursing home, taxes are probably the last thing on your mind. But you should know that several tax breaks may be available to help offset some of the costs. Medical Expense Deductions The costs of qualified long-term care (LTC), such as nursing home
IRS Publishes Numbers for 2024
The IRS has issued numbers to help you understand what the 2024 tax situation will be like. Below is a summary. The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals