Cryptocurrency – the Wild, Wild West
Even with prices falling, interest in cryptocurrency is on the rise. It is important to know the tax implications before you jump into the world of crypto. Whether you are invested in, accept or make payment with, or receive a gift of crypto it may give rise to a taxable event. The following chart is…
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Estimated Taxes and Withholding – What to Pay and When
Federal and Alabama taxes are collected on a pay-as-you-go system, either through withholding or estimated taxes. Do You Need to Pay Estimates? If your income is mainly from wages and you always have a substantial balance due at tax time, increase withholding and pass on making estimates. Otherwise consider if the following applies to you:…
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SafeSend Return FAQs
Many of you have successfully SafeSend returns e-sign feature as part of our tax return delivery process; however, we would like to take this opportunity to provide additional information and provide some extra incentive to give the program a try if you haven’t yet had the opportunity. SafeSend FAQs What are the benefits to you,…
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The IRS Raises 2023 Retirement Plan Contribution Limits
As they do each year, the IRS announced 2023 retirement plan increases as follows: 2022 2023 2023 Catch Up 401(k), 403(b) & 457 $20,500 $22,500 $7,500 Traditional or Roth IRA $6,000 $6,500 $1,000 SIMPLE IRA $14,000 $15,500 $3,500 SEP IRA $61,000 $66,000 N/A Catch-Up Contributions Individuals aged 50 or older are allowed to make…
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IRS Announces Delay for Implementation of $600 Reporting Threshold for Third-Party Payment Platforms – Form 1099 K
On December 23, 2022, the Internal Revenue Service announced delay in implementation of the new $600 reporting threshold for third-party network’s Forms 1099-K. As a result of this delay, third-party networks will not be required to report 2022 tax year transactions on a Form 1099-K to the IRS or the payee for the new $600 threshold amount.
Charitable Contribution Documentation
Approximately 30% of annual charitable giving in the US occurs in December. As we enter the giving season, make sure you have the proper documentation to substantiate a gift for tax deduction purposes. For all contributions of $250 or more, you must have a contemporaneous written acknowledgment (“CWA”) from the organization. A CWA must include…
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Individual Capital Gains Explained
At year-end, we get calls from clients asking about individual capital gains as they harvest gains and losses. This is an overview of the rules. Capital gains are grouped and taxed based on the holding period. Long-term capital gains or losses are generated by the sale of assets held over 12 months, and short-term have…
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Making the Most of Fixed Asset Purchases – Expensing Options
Let’s review some options to reduce taxable income through expensing of fixed asset purchases and, in some cases, improvements.
1099s – Why the Rush?
While many would prefer to “think about that tomorrow” or in January, time spent now can significantly affect how hectic your January will be. The best practice is to have new vendors provide a completed W-9 before issuing a payment. We also recommend reviewing 1099 vendors a few times throughout the year and requesting any…
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Do You Have Adequate Insurance Coverage for Your Home?
We all saw the devastation in Florida from Hurricane Ian. Its estimated losses will total $50 billion. Sadly, due to inadequate insurance coverage, many will not fully recover their losses. Closer to home, we can still see some of the damage caused by the tornado outbreak in March of 2021. Do you know what happens…
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