How to Assist A Child Buying a Home
As housing prices and mortgage rates continue to escalate, many young people struggle to purchase their first home or upgrade. One option is for parents or family to finance the purchase of the house and hold a mortgage. The transaction is documented like a regular mortgage with monthly payments. Let’s look at the advantages: Favorable…
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Navigating Expense Reimbursement Challenges: A Tech-Savvy Approach
Expense reimbursement remains a significant challenge for many businesses in the accounting landscape. Manual processes often lead to errors, delays, and employee dissatisfaction. To address these issues, businesses are increasingly turning to software solutions that streamline the reimbursement process and enhance accuracy and efficiency. Expense reimbursement problems are commonly rooted in paper-based systems, which result…
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Estate and Gift Taxes – Plan Now for Reduced Exemption in 2026
For the past five years, taxpayers have enjoyed historically high gift and estate tax exemptions, thanks to the Tax Cuts and Jobs Act of 2017. This legislation doubled the exemption from approximately $5.5 million to $13.61 million per person (adjusted for inflation) in 2024. The annual gift exemption also increased to $18,000 per donee in…
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The Benefits of Outsourced Accounting
In today’s business environment, companies are constantly seeking ways to optimize operations and enhance efficiency. One strategy gaining prominence is outsourcing, particularly accounting functions. Outsourcing accounting services can offer a myriad of benefits, revolutionizing a business’s financial landscape. Firstly, outsourcing allows companies to tap into a pool of skilled professionals without the burden…
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$1 Billion in Unclaimed Property Held by the Alabama Treasury
We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the…
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Structure Disability Benefits to be Tax-Free
Many employers provide long-term disability benefits to employees. It’s a great benefit, but no one considers the tax side. Typical policy benefits pay the equivalent of 50%-70% of the normal salary. That could be adequate if the benefits are not taxable. If they are taxable, you’ll wind up with significantly less income. For example, let’s…
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Alabama Business Privilege Tax Changes for 2024
Alabama House Bill 391 reduced the minimum state business privilege tax in 2023 from $100 to $50. Beginning in 2024, businesses that are subject to the minimum tax ($100 or less) are completely exempt from paying the tax and filing a Business Privilege Tax Return (BPTIN/CPT/PPT). This means many single-member entities will no longer be…
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Interpreting Financial Statements: The Story Behind the Numbers
Financial statements serve as a window into the health and performance of a business, offering valuable insights for investors, analysts, and stakeholders. The statements, including the income statement, balance sheet, and cash flow statement, provide a comprehensive view of a company’s financial position (and health). Let’s dive into what these statements can reveal: Income Statement:…
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Update on the CPA Profession
When talking with clients, I always like to know how their business is going. I love to hear about everything: their team, sales, challenges, etc. When asked the same question, I usually respond, “Business is great, and we’re looking for more.” However, one of the accounting profession’s biggest challenges is the need for more people…
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Stepped Up Basis – What is it and Why it’s Important
The stepped-up basis applies to assets inherited at someone’s death. The IRS resets the asset’s original cost basis to its value at the decedent’s date of death. If the asset is later sold, the heir pays capital gains on the gain (if any) on the sale proceeds less the stepped-up basis. So, if sold immediately…
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