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It’s the height of the construction season in most parts of the country and your business probably wants to make the most of it. But rising costs, worker shortages, international tariffs and other pressures may threaten the profitability of your enterprise. The last thing you need is fraud. According to the Association of Certified Fraud Examiners’ Occupational Fraud 2024: A Report to the Nations, construction companies affected by fraud lose a median of $250,000 per scheme, compared with $145,0
The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs). Employees will be able to save a modest amount more in their HSAs next year. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered under a “high-deductible health plan” (HDHP).
It’s important to determine whether a business valuation also calls for a real estate appraisal. While the decision may be relatively straightforward for real estate holding companies, it becomes more nuanced for operating businesses that own or lease real property. In many cases, real estate isn’t just a backdrop for business activity — it’s a core driver of enterprise value.
As the use of digital assets like cryptocurrencies continues to grow, so does the IRS’s scrutiny of how taxpayers report these transactions on their federal income tax returns. The IRS has flagged this area as a key focus. To help you stay compliant and avoid tax-related complications, here are the basics of digital asset reporting. The definition of digital assets Digital assets are defined by the IRS as any digital representation of value that’s recorded on a cryptographically secured distribu
The gig economy offers flexibility, autonomy and a way to earn income, but it also comes with tax obligations that can catch many workers off guard. Whether you’re driving for a rideshare service, delivering food, selling products online or offering local services like pet walking, it’s crucial to understand the tax implications of gig work to stay compliant and avoid costly surprises.
Technological advances can as easily open the door to fraud as shut it. Case in point: Although significant improvements have been made to generative artificial intelligence’s (GenAI’s) document generation capabilities, such upgrades have generally made fraud easier to perpetrate. Here’s how your business can prevent and detect GenAI document fraud attempts by rogue employees.
Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them.
If you’ve recently received a settlement or award from a lawsuit, or you’re expecting one, you may be wondering how the IRS views this money. Will you need to pay taxes on it? The short answer: It depends on the type of damages you received. Understanding the basic rules can help you avoid surprises. Taxable vs. nontaxable awards Not all lawsuit settlements or awards are treated the same under federal tax law.
Historical financial performance is just one piece of the business valuation puzzle. While it provides a starting point, its relevance depends on whether the business is expected to achieve similar results in the future. High interest rates, restricted access to credit, global trade uncertainties, tax policy ambiguity and geopolitical instability have significantly altered the business landscape.
A bill in Congress — dubbed The One, Big, Beautiful Bill — could significantly reshape several federal business tax breaks. While the proposed legislation is still under debate, it’s already sparking attention across business communities. Here’s a look at the current rules and proposed changes for five key tax provisions and what they could mean for your business. 1.
The U.S. House of Representatives passed The One, Big, Beautiful Bill Act on May 22, 2025, introducing possible significant changes to individual tax provisions. While the bill is now being considered by the Senate, it’s important to understand how the proposals could alter key tax breaks. Curious about how the bill might affect you? Here are seven current tax provisions and how they could change under the bill.
Even well-run companies experience down years. The federal tax code may allow a bright strategy to lighten the impact. Certain losses, within limits, may be used to reduce taxable income in later years. Who qualifies? The net operating loss (NOL) deduction levels the playing field between businesses with steady income and those with income that rises and falls.
Fraud whether its occupational or external doesnt just cause immediate financial losses. It can also reduce your companys long-term value. For example, it could lower the price when you sell or limit the amount of capital you can raise via lenders and investors. Even poor internal controls can reduce your businesss worth. Heres a brief overview of how valuation professionals assess fraud risk.
Even after your 2024 federal return is submitted, a few nagging questions often remain. Below are quick answers to five of the most common questions we hear each spring. 1. When will my refund show up? Use the IRSs Wheres My Refund? tracker atIRS.gov. Have these three details ready: Social Security number, Filing status, and Exact refund amount. Enter them, and the tool will tell you whether your refund is received, approved or on the way. 2.
Determining reasonable compensation is a critical issue for owners of Ccorporations and Scorporations. If the IRS believes an owners compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen as reasonable and deductible.
Valuation professionals use various methods to determine the fair market value of a private business or business interest. One of the more debated techniques is the excess earnings method. Here are answers to some common questions about this controversial method. Whats the excess earnings method? The U.S. Department of the Treasury originally developed the excess earnings method in 1920 to estimate value lost by businesses during Prohibition.
Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person. Its called the 100% penalty because the entire unpaid federal income and payroll tax amounts can be assessed personally as a penalty against a responsible person, or several responsible persons.
Suppose your adult child or friend needs to borrow money. Maybe its to buy a first home or address a cash flow problem. You may want to help by making a personal loan. Thats a nice thought, but there are tax implications that you should understand and take into account. Get it in writing You want to be able to prove that you intended for the transaction to be a loan rather than an outright gift.
For federal income tax purposes, the general rule is that rental real estate losses are passive activity losses (PALs). An individual taxpayer can generally deduct PALs only to the extent of passive income from other sources, if any. For example, if you have positive taxable income from other rental properties, that generally counts as passive income.
Are you starting a business with partners and deciding on the right entity? An Scorporation might be the best choice for your new venture. One benefit of an Scorporation One major advantage of an Scorporation over a partnership is that shareholders arent personally liable for corporate debts. To ensure this protection, its crucial to: Adequately finance the corporation, Maintain the corporation as a separate entity, and Follow state-required formalities (for example, by filing articles of incorp
Statistics on fraud rates in family-run businesses are scant. This is probably because most family enterprises keep incidents of financial malfeasance under wraps and dont involve law enforcement or the courts. Because punishing offenders is critical to preventing future fraud, such secrecy can encourage schemes and raise the risk of large financial losses.
There are some nice tax breaks for transportation-related employee fringe benefits. If your employer offers these tax-favored fringes, you should probably take advantage of them by signing up. Heres a quick summary of the current federal tax treatment of transportation-related benefits. Mass transit passes For 2025, employer-provided mass transit passes for train, subway and bus systems are tax-free to a recipient employee up to a monthly limit of $325.
When its time to consider your businesss future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether youre ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different succession strategies is key.
You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldnt be claimed because you didnt have enough deductions to itemize. How much do you need? You can itemize deductions if the total of your allowable itemized write-offs for the year exceeds your standard deduction allowance for the year.
Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created 163(j), which generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, its important to understand the impact of the deduction limit on your tax bill.
Business valuation professionals often rely on client-prepared financial projections to calculate lost profits and diminution in value. However, courts may exclude expert testimony thats based on speculative or unreliable projections. To withstand scrutiny, valuators must support their conclusions with market-based evidence and a rigorous analysis of case-specific facts.
If you made significant gifts to your children, grandchildren or other heirs last year, its important to determine whether youre required to file a 2024 gift tax return. And in some cases, even if its not required to file one, you may want to do so anyway. Requirements to file The annual gift tax exclusion was $18,000 in 2024 (increased to $19,000 in 2025).
If an individual taxpayer has substantial business losses, unfavorable federal income tax rules can potentially come into play. Heres what you need to know as you assess your 2024 tax situation. Disallowance rule The tax rules can get complicated if your business or rental activity throws off a tax loss and many do during the early years. First, the passive activity loss (PAL) rules may apply if you arent very involved in the business or if its a rental activity.
The Child Tax Credit (CTC) has long been a valuable tax break for families with qualifying children. Whether youre new to claiming the credit or youve benefited from it for years, its crucial to stay current on its rules and potential changes. As we approach the expiration of certain provisions within the Tax Cuts and Jobs Act (TCJA) at the end of 2025, heres what you need to know about the CTC for 2024, 2025 and beyond.
If youre getting ready to file your 2024 tax return and your tax bill is higher than youd like, there may still be a chance to lower it. If youre eligible, you can make a deductible contribution to a traditional IRA until this years April 15 filing deadline and benefit from the tax savings on your 2024 return. Whos eligible? You can make a deductible contribution to a traditional IRA if: You (and your spouse) arent an active participant in an employer-sponsored retirement plan, or You (or your s
A business interests value is more than just a number to its owner. It represents years of hard work, sacrifice and investment. Owners often believe they have a clear understanding of their companys worth. But emotions and optimism about future earnings can cloud their perception. Lets look at psychological factors that may affect owners value perceptions and why the numbers might tell a different story.
Retirement is often viewed as an opportunity to travel, spend time with family or simply enjoy the fruits of a long career. Yet the transition may bring a tangle of tax considerations. Planning carefully can help you minimize tax bills. Below are four steps to take if youre approaching retirement, along with the tax implications. 1. Consider your post-career lifestyle Begin by assessing what retirement might look like for you.
Preventing financial losses from occupational fraud requires your company to remain vigilant. In a nutshell: Trust employees, but routinely verify they arent stealing. This includes salespeople who, if theyre unethical, could falsify sales commission records to illicitly line their own pockets. Because its sometimes impossible to spot crooks in your midst, be aware of potential sales commission fraud schemes and how best to detect and prevent them.
As higher education costs continue to rise, you may be concerned about how to save and pay for college. Fortunately, several tools and strategies offered in the U.S. tax code may help ease the financial burden. Below is an overview of some of the most beneficial tax breaks and planning options for funding your childs or grandchilds education. Qualified tuition programs or 529 plans A 529 plan allows you to buy tuition credits or contribute to an account set up to meet your childs future higher e
As posted to US Department of Treasury website on 3/2/25 The Treasury Department announced on 3/2/25 that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect e
When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the Internal Revenue Code, which governs the treatment of gains and losses from the sale or exchange of certain business property. Business gain and loss tax basics The federal income tax character of gains and losses from selling business assets can fall into three categories: Capital gains and losses.
According to the U.S. Bureau of Labor Statistics, the unemployment rate continues to be historically low, ranging from 4.0% to 4.3% from May to November of 2024. With todays hiring challenges, business owners should be aware that the Work Opportunity Tax Credit (WOTC) is available to employers that hire workers from targeted groups who face significant barriers to employment.
According to the Association of Certified Fraud Examiners, when one occupational fraud perpetrator pulls off a scam, the employer suffers a median loss of $75,000. When crooked individuals team up, that median loss rises to $135,000. And when three or more crooks work together to defraud an organization? $329,000. Thats the power of collusion. If such financial consequences werent bad enough, collusion can also destroy a companys reputation.
Saving for retirement is a crucial financial goal and a 401(k) plan is one of the most effective tools for achieving it. If your employer offers a 401(k) or Roth 401(k), contributing as much as possible to the plan in 2025 is a smart way to build a considerable nest egg. If youre not already contributing the maximum allowed, consider increasing your contribution in 2025.
Global merger and acquisition (M&A) volume is expected to surpass $4 trillion in 2025, the highest in four years, according to Reuters. Reasons for the anticipated surge include recent interest rate cuts by the Federal Reserve and GOP promises of fewer regulations and lower taxes for U.S. businesses and their owners. Tariffs if enacted also could spur consolidation in certain industries.
When deciding on the best structure for your business, one option to consider is a Ccorporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Heres a detailed look at the pros and cons of operating as a C corporation. Tax implications A C corporation allows the business to be treated and taxed separately from you as the principal owner.
When considering the advantages of U.S. Treasury savings bonds, you may appreciate their relative safety, simplicity and government backing. However, like all interest-bearing investments, savings bonds come with tax implications that are important to understand. Deferred interest Series EE Bonds dated May 2005 and after earn a fixed rate of interest.
Intangible assets, such as patents, trademarks, copyrights and goodwill, play a crucial role in todays businesses. The tax treatment of these assets can be complex, but businesses need to understand the issues involved. Here are some answers to frequently asked questions. What are intangible assets? The term intangibles covers many items. Determining whether an acquired or created asset or benefit is intangible isnt always easy.
Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Lets start by defining local transportation. It refers to travel when you arent away from your tax home long enough to require sleep or rest.
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