Douglas Freeman – DougFreemanCPA.com

Health care self-insurance and stop-loss coverage: What business owners need to know

For businesses, cost-effectively sponsoring a health insurance plan for employees is an ongoing battle. In the broadest sense, you have two options: fully insured or self-funded. A fully insured plan is simply one you buy from an insurer. Doing so limits your financial risk while offering the most predictable costs. The other option is what’s […]

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Watch out for “income in respect of a decedent” issues when receiving an inheritance

Leave a Comment / Estate Planning, Estate Tax, Income In Respect Of A Decedent (IRD), Income Tax, Inheriting Money / Douglas Freeman

Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If

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When businesses may want to take a contrary approach with income and deductions

Leave a Comment / Business Deductions, Business Income Tax, Capital Gains, Corporate Federal Income Tax Rate, Depreciation Deduction (Section 179), Uncategorized / Douglas Freeman

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income

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The pros and cons of turning your home into a rental

Leave a Comment / Real Estate, Rental Income, Rental Property / Douglas Freeman

If you’re buying a new home, you may have thought about keeping your current home and renting it out. In March, average rents for one- and two-bedroom residences were $1,487 and $1,847, respectively, according to the latest Zumper National Rent Report. In some parts of the country, rents are much higher or lower than the

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Don’t have a tax-favored retirement plan? Set one up now

Leave a Comment / 401K, IRA, Retirement, Self Employed, Simplified Employee Pension (SEP), Sole Proprietors, Tax Deduction, Tax Planning, Tax-Advantaged Retirement Plan, The SECURE Act / Douglas Freeman

If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for

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7 common payroll risks for small to midsize businesses

Leave a Comment / Employees, Mid-Size Businesses, Payroll Audit, Payroll Service, Small Business, Small Business Owners / Douglas Freeman

If your company has been in business for a while, you may not pay much attention to your payroll system so long as it’s running smoothly. But don’t get too complacent. Major payroll errors can pop up unexpectedly — creating huge disruptions costing time and money to fix, and, perhaps worst of all, compromising the

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Keep these 3 issues in mind after you file your return

Leave a Comment / Filing an Amended Tax Return, Tax Refund, Tax Return / Douglas Freeman

The tax filing deadline for 2023 tax returns is April 15 this year. If you need more time, you can file for an extension until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three

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Scrupulous records and legitimate business expenses are the key to less painful IRS audits

Leave a Comment / Bookkeeping, Internal Revenue Service (IRS), IRS Audit, Small Business, Small Business Owners / Douglas Freeman

If you operate a business, or you’re starting a new one, you know records of income and expenses need to be kept. Specifically, you should carefully record expenses to claim all the tax deductions to which you’re entitled and you want to make sure you can defend the amounts reported on your tax returns in

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A general look at generative AI for businesses

Leave a Comment / Artificial Intelligence (AI) for Business, Small Business, Small Business Owners / Douglas Freeman

If you follow the news, you’ve probably heard a lot about artificial intelligence (AI) and how it’s slowly and steadily expanding into various aspects of our lives. One widely cited example is ChatGPT, an AI “chatbot” that can engage in conversations with users and create coherently written articles, as well as other content when prompted.

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The tax deadline is almost here: File for an extension if you’re not ready

Leave a Comment / Federal Taxes, Individual Income Tax, Internal Revenue Service (IRS), State Tax, Tax Deadlines / Douglas Freeman

The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 15 to

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