Articles From Lumsden McCormick

The IRS has announced the inflation-adjusted limits for Health Savings Accounts (HSAs) for 2025. The annual contribution limits will increase to $4,300 for individuals with self-only coverage and $8,550 for those with family coverage. These adjustments help business owners plan and offer valuable tax-advantaged benefits to employees.

A Health Savings Account (HSA) offers affluent individuals a strategic way to reduce healthcare costs and federal taxes while enhancing their retirement savings and estate planning. HSAs allow tax-free withdrawals for medical expenses and provide unique benefits for beneficiaries, particularly spouses, allowing for continued tax-free growth and usage.

The Department of the Treasury and the IRS on April 25 released long-awaited final regulations (T.D. 9993) related to the transfer of certain credits under Internal Revenue Code Section 6418, added by the Inflation Reduction Act (IRA), which describes rules for the election to transfer eligible credits in a taxable year. 

When implementing new software solutions or tools, organizations must first lay the groundwork, assess and prepare for risks, leverage existing processes and technology, and develop a plan for the unexpected.

For business owners contemplating a transition from a C corporation to an S corporation, it’s important to be aware of the tax implications that could arise. Here are four key tax considerations to keep in mind during the conversion process.

In estate planning, “tangible personal property” encompasses items like jewelry and antiques, which, despite their emotional value, can cause disputes among heirs. To prevent conflict, it’s advisable to designate specific items to particular beneficiaries in your will or trust. 

External audits can assure stakeholders of a nonprofit's financial stability and help prevent fraud, but failure to address recommended actions from audit reports can threaten the organization's future.

If your manufacturing facility is reaching maximum capacity, you may be considering expanding your operational footprint or by leveraging AI and technology to boost productivity and improve efficiencies.

When acquiring a business, it’s crucial to consider the tax implications of the transaction’s structure. Proper planning can optimize tax outcomes post-acquisition.

For closely held C corporation shareholders, incorporating third-party or owner debt into your capital can be tax-efficient due to lower income tax rates and avoiding double taxation on dividends. Consult with us for tailored advice.