Tax Articles

Probate is the legal process of settling an estate and transferring assets to heirs, but it can expose personal details to the public and attract unwanted attention. While the process typically takes six to nine months, it can be avoided through a revocable living trust, which keeps asset distribution private and outside of probate court. Understanding the probate process and available alternatives is crucial for effective estate planning.

State and local tax (SALT) credits and incentives programs continue to be underutilized. Despite the substantial value they can add for businesses, BDO’s 2024 CFO Outlook Survey found that just 34% of CFOs plan to optimize costs by claiming tax credits in the next 12 months.

Manufacturers can reduce their 2024 tax liability by taking advantage of key provisions from the Tax Cuts and Jobs Act, including Section 179 expensing and bonus depreciation, as well as newer incentives from the Inflation Reduction Act and CHIPS Act. Implementing strategies such as purchasing eligible assets or leveraging tax credits for R&D and advanced manufacturing before year-end can result in significant tax savings. Acting quickly is essential to maximizing these opportunities.

On July 11, Pennsylvania Gov. Josh Shapiro signed into law the 2024-2025 budget (S.B. 654), which amends several important business and individual tax provisions.

The journey from founding a company to successfully handing over the reins involves navigating a complex maze of financial, legal, and even emotional challenges.

We encourage you to listen to the recording of this insightful session, which delves into the complexities of ownership transfer whether you are planning to sell your business, pass it on to the next generation, or transition to a new leadership team, this recording will provide you with critical strategies to ensure a smooth and successful transfer. 

A Charitable Remainder Trust (CRT) allows individuals to achieve two estate planning goals: providing income to beneficiaries and leaving assets to charity, all while receiving potential tax benefits. With options like CRATs and CRUTs, a CRT offers flexibility in payouts and contributions. However, it’s an irrevocable decision, so careful planning is essential.

Businesses offering employee health coverage may be required to comply with federal reporting obligations under the Affordable Care Act (ACA). Companies with 50 or more full-time employees must file Forms 1094-C and 1095-C to report health coverage details and determine compliance with employer mandate provisions. Employers with fewer than 50 full-time employees are generally exempt from these requirements.

The role of an executor involves significant responsibilities, including filing the will and initiating the probate process, identifying and managing the deceased’s assets, and ensuring all debts and final expenses are paid. Executors must also file the decedent's final tax returns and distribute remaining assets to beneficiaries according to the will. Acting as a fiduciary, the executor must maintain detailed records and act in the best interests of the estate, making it essential to seek professional guidance, such as from a CPA, to navigate this complex process effectively.

As the fourth quarter of 2024 approaches, business owners must be aware of key tax deadlines, including filing returns, making estimated tax payments, and contributing to retirement plans. Missing these important dates can result in penalties or interest charges. This article highlights the most critical deadlines and filing requirements to help ensure businesses stay compliant.