Tax Articles

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.

States have made many changes to their economic nexus thresholds in the wake of the landmark sales and use tax decision in South Dakota v. Wayfair from 2018.

A well-drafted partnership or LLC operating agreement should address key tax considerations, such as guaranteed payments, partner liabilities, and payments to retired partners. These provisions ensure tax compliance and help manage potential issues like partner exits or ownership transfers. Properly addressing these matters minimizes tax liabilities and protects the business.

A spendthrift trust is a useful tool for protecting assets and ensuring responsible management of an inheritance. It prevents beneficiaries from directly accessing or mismanaging funds, while also protecting against creditors. The trustee plays a crucial role in managing payments, providing financial security for the beneficiary in line with the trust’s terms.

As the year-end approaches, small businesses should focus on tax planning strategies like deferring income, accelerating deductions, and maximizing the QBI deduction to reduce their tax liabilities. It's also essential to stay updated on estimated tax payments, Section 179 expensing options, and potential changes to tax laws that could impact future filings. Consulting with a tax professional can help tailor these strategies to your business's needs.