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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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Jefferson County & Alabama Property Tax Overview

Valuation Process  Jefferson County recently sent out valuation notices for properties with an increase in value or change in boundary. The county utilizes a mass appraisal process set forth by the Alabama Department of Revenue. When a sale within a neighborhood indicates an increase or decrease, valuations are adjusted. If you received a notice and…
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Guidance Provided for Overtime Pay Exempt from Alabama Income Tax

In June, we reported that the Alabama Legislature passed HB217, which eliminates the 5% withholding tax on overtime from January 2024 through June 2025. Employers are subject to reporting for 2023, 2024 and 2025. Now, the Alabama Department of Revenue has published reporting guidance and FAQs. Historical 2023 overtime data must be submitted by January…
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