New Options for Leftover 529 Plan Funds – Convert to Roth IRA
The SECURE 2.0 Act of 2022 introduces a noteworthy change: a special rule allowing transfers from 529 plans to Roth IRAs. Effective in 2024, this rule enables unused college savings to shift to tax and penalty-free retirement accounts. Why This Matters Before this change, if a 529 plan wasn’t fully used for education, options were…
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IRS Scams – What to Know
As we move into the holiday season, it is crucial to continue to be vigilant. Unfortunately, taxpayers are a prime target of con artists claiming to be the IRS to try and solicit sensitive information. There are some essential things to know to stay safe from scams. The IRS does not contact taxpayers via phone,…
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Federal Tax Credits Available for Energy-Efficient Improvements
You may be able to benefit from enhanced residential energy credits as a result The Inflation Reduction Act of 2022. Energy Efficient Home Improvement Credits Building envelope components and energy property qualify: Exterior doors (30% of costs up to $250 per door) Exterior windows or skylights (30% of costs up to $600) Insulation materials (30%…
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Kiddie Tax: When Does it Apply?
Special tax law provisions apply to certain children with unearned income. Generally, unearned is interest, dividends, capital gains, custodial account income and taxable income produced by scholarships. These provisions do not apply to earned income – like W-2 income from a summer job though they may require a return filing. Who Qualifies as a…
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Effective Meetings: Maximize Productivity and Engagement
Meetings are on the rise and essential to our modern work culture. However, poorly managed meetings often lead to wasted time and frustration. When considering scheduling a meeting, first ask yourself if a meeting is necessary. If yes, try to limit the number of attendees and make it as efficient as possible. Tips for more…
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A Refresher on IRS Repair Regulations: Capitalize or Expense?
In 2013, the IRS issued final regulations (“Repair Regs”) establishing a framework for distinguishing between deductible repairs and capital improvements. It is important to carefully consider each expenditure in light of the Repair Regs to determine whether each expenditure should be: Expensed immediately. Capitalized and depreciated using accelerated depreciation methods. Capitalized and depreciated over a…
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Tune Up Billing and Collection Processes for Improved Cash Flow
Timely and accurate billing, along with efficient collection strategies, not only ensure a steady cash flow but also contribute to building strong relationships with clients. Let’s look at some best practices to optimize billing and collection processes. Bill Quickly: The best opportunity to collect is when your service (or product) is fresh in your customer’s mind….
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Alabama Sales Tax Reform for Small Businesses
Beginning October 1st, businesses with an average monthly sales tax liability of less than $20,000 will no longer be required to pay estimated sales tax to the state. The Alabama Department of Revenue will send a letter to those impacted. Click here to see the Alabama Department of Revenue Notice: ADOR sales tax change 10.01.23…
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IRS Stops Processing Employee Retention Claims
On September 14th, IRS Commissioner Danny Werfel announced an immediate halt to processing ERC claims, citing concerns over improper/fraudulent claims. To date, the IRS has processed 3.6 million claims. In the last 90 days, 600,000 claims have been received – 15% of total claims submitted. The fear is many of the newly submitted claims do…
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2023 Changes for First Year Expensing of Business Property
As we get closer to year-end, it’s a good idea to consider first-year expensing for eligible property and equipment already purchased and any anticipated purchases before year-end. In 2023, there are two options for businesses to take accelerated first-year depreciation deductions: (1) Section 179 and (2) bonus depreciation. Section 179 Deduction IRC Section 179 allows…
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