November 2023 – DougFreemanCPA.com

Solving the riddles of succession planning for family businesses

(GRAT) Grantor-Retained Annuity Trust, Family Business, Gift Tax, Succession Plans, Trust / Douglas Freeman

Every established company will encounter challenges when confronting the thorny issue of succession planning. Family-owned businesses, however, often face particularly complex issues. After all, their owners may have to consider both family members who work for the company and those who do not. If yours is a family business, you may run into some confounding […]

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Don’t forget to empty out your flexible spending account

Deductable Expenses, Flexable Spending Accounts, Itemized Deduction, Medical Deductions, Medical Expenses, Tax Savings / Douglas Freeman

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). As the end of 2023

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There still may be time to reduce your small business 2023 tax bill

Business Income Tax, Depreciation Deduction (Section 179), Federal Taxes, Small Business, Small Business Owners, Small Business Tax Tips, Tax Savings, Taxes 2023 / Douglas Freeman

In the midst of holiday parties and shopping for gifts, don’t forget to consider steps to cut the 2023 tax liability for your business. You still have time to take advantage of a few opportunities. Time deductions and income. If your business operates on a cash basis, you can significantly affect your amount of taxable

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Key 2024 inflation-adjusted tax amounts for individuals

Federal Income Tax, Federal Taxes, Individual Income Tax, Inflation, Ordinary Income Tax / Douglas Freeman

The IRS recently announced various 2024 inflation-adjusted federal tax amounts that affect individual taxpayers. Most of the federal income tax rate bracket thresholds are about 5.4% higher than for 2023. That means that you can generally have about 5.4% more income next year without owing more to the federal government. Standard deduction. Here are the

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Key 2024 inflation-adjusted tax parameters for small businesses and their owners

Federal Taxes, Inflation, LLC, Ordinary Income Tax, Partnerships, Past-Through Entities, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors / Douglas Freeman

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets. If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations

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Some businesses may have an easier path to financial statements

Bookkeeping, Certified Public Accountant (CPA), Financial Statements, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

There’s no getting around the fact that accurate financial statements are imperative for every business. Publicly held companies are required to not only issue them, but also have them audited by an independent CPA. Audited financial statements provide the highest level of assurance to third-party users that the documents in question are free of material

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A cost segregation study may cut taxes and boost cash flow

Cash Flow, Cost Segregation Study, Depreciation, Depreciation Deduction (Section 179), Federal Taxes, Small Business, Small Business Tips, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics. Business buildings generally have a 39-year depreciation period

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11 Exceptions to the 10% penalty tax on early IRA withdrawals

IRA, IRA Early Withdrawal, Savings Incentives Match Plans for Employees (SIMPLEs), Simplified Employee Pension (SEP), Traditional IRA / Douglas Freeman

If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here’s what you need to know about the tax implications, including when the 10%

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Is your business subject to the new BOI reporting rules?

Beneficial Ownership Information, Corporations, Financial Crimes Enforcement Network (FinCEN), LLC, Small Business, Small Business Tips, The Corporate Transparency Act (CTA) / Douglas Freeman

The Corporate Transparency Act (CTA) was signed into law to fight crimes commonly associated with illegal business activities such as terrorist financing and money laundering. If your business can be defined as a “reporting company” under the CTA, you may need to comply with new beneficial ownership information (BOI) reporting rules that take effect on

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What you need to know about restricted stock awards and taxes

(LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Federal Income Tax, Highly Compensated Employees, Restricted Stock / Douglas Freeman

Restricted stock awards are a popular way for companies to offer equity-oriented executive compensation. Some businesses offer them instead of stock option awards. The reason: Options can lose most or all of their value if the price of the underlying stock takes a dive. But with restricted stock, if the stock price goes down, your

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