All insights by: Kruggel Lawton CPAs

Entrepreneurs and Taxes: How Expenses are Claimed on Tax Returns

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they had more time, wanted to take advantage of new opportunities or they needed money due Read More »

Cast Your Vote for Kruggel Lawton!

While it may only be the first month of the new year, Kruggel Lawton CPAs has been nominated for four different awards! Please show your support for the firm and our accountants by voting for Kruggel Lawton in the following categories: – Northwest Indiana Business Magazine’s Best Accounting Firm in Northwest Indiana – Northwest Indiana Read More »

Nonprofit Budgeting Ideas for Uncertain Times

Budgeting, like many other things, was generally easier before COVID-19. Even though the pandemic isn’t over and much remains uncertain, nonprofits need to plan their financial needs and project financial resources. But you might be able to make the budgeting process more effective by trying a new approach — for example, a rolling budget — or by Read More »

Businesses with Employees Who Receive Tips May Be Eligible for a Tax Credit

If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Basics of the credit The FICA credit applies with respect to tips that your employees Read More »

Michigan Moves Quickly to Implement Pass-through Entity Tax for 2021

Authors: Long Pham, CPA, and Paul Erickson On December 20, 2021, Michigan became the most recent state to adopt an elective Pass-Through Entity (PTE) tax. Under the PTE tax, Michigan pass-through entities may elect to pay tax at the entity level, effective retroactively for tax years beginning on or after January 1, 2021. The owners Read More »

2022 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January Read More »

IRS Increases Annual Exclusion for Gifts for Calendar Year 2022

The IRS recently released Revenue Procedure 2021-45 announcing the tax year 2022 annual inflation adjustments. Procedure 2021-45 details more than 60 tax provisions, including the tax rate schedules and other tax changes. One of the provisions includes an increase to the annual exclusion from gift tax. For calendar year 2022, the first $16,000 of gifts Read More »

IRS Issues Guidance for Retroactive Termination of the Employee Retention Credit

On December 6, the IRS issued Notice 2021-65 to offer employers guidance on the retroactive end date of the Employee Retention Credit (ERC). Previously, the ERC was expected to be discontinued on Dec. 31, 2021, but with the enactment of the Infrastructure Investment and Jobs Act in November of this year, it was retroactively discontinued Read More »

Small Businesses: There Still May be Time to Cut Your 2021 Taxes

Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase assets Thinking about buying new or used equipment, machinery or office equipment in the new year? Buy them and place them in service by December 31, and you Read More »

If You Traded or Sold Any of Your Cryptocurrency, You’ll Need to Report it

The IRS is getting serious about taxing cryptocurrency.  Cryptocurrency is treated as property, and taxes could be owed when it’s sold or exchanged. Additionally, if someone is paid in cryptocurrency, the payee is responsible for paying the income tax. If your only crypto activity came from purchasing virtual currency, you don’t have to include that on your tax return. Because cryptocurrency Read More »

President Biden Expected to Sign Bill Ending the ERTC Early

The Employee Retention Tax Credit (ERTC) may come to an end three months early if the bipartisan infrastructure bill that the House passed over the weekend is signed by President Biden. What does this mean for employers? The $1.2 trillion bill, formally known as the Infrastructure Investment and Jobs Act, includes a tax provision that Read More »

Kruggel Lawton CPAs Announces Promotions

Kruggel Lawton CPAs is delighted to announce the promotion of several of its professionals in the firm. Nicole Hanlon, CPA is a Senior Staff Accountant in the firm’s South Bend, Ind. office focusing on audits along with corporate and individual tax preparation. Nicole received her undergraduate degree in Accounting from Grace College. In her free time, Nicole Read More »

Michiana Benchmark Business Index Continued to Increase in Third Quarter

DOWNLOAD PDF: Q3 2021 Michiana Benchmark Business Index by Kruggel Lawton The third quarter 2021 Michiana Benchmark Business Index, compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, rose again to another record high level. The third quarter Benchmark Index was 78.72 out of a maximum possible score of 100, an Read More »

Employers: The Social Security Wage Base Is Increasing In 2022

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background Information The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed Read More »

Nonprofit Restructuring Has Become Easier, But Not Without Challenges

A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding nonprofit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier. Even so, if recent challenges have led your organization to consider restructuring, it’s important to work with a professional advisor, Read More »

2021 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: Read More »

HHS Announces The Availability Of $25.5 Billion in COVID-19 Provider Funding

The Biden-Harris Administration announced on September 10 that the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is making $25.5 billion in new funding available for health care providers affected by the COVID-19 pandemic. This funding includes $8.5 billion in American Rescue Plan (ARP) resources for providers Read More »

House Ways And Means Committee Advances Tax Legislation As Part Of Reconciliation Bill

After almost 40 hours of debate over four days, the House Ways and Means Committee on September 15 approved a tax package that would increase rates on high-net-worth individuals and corporations and affect cross-border activity and pass-through entities, advancing the tax elements of the Biden administration’s “Build Back Better” agenda. The package advanced on a Read More »

When does my company need an Employee Benefit Plan Audit?

Knowing when your organization needs to conduct an Employee Benefit Plan Audit can be difficult. Join Senior Manager Aaron O’Dell as he briefly discusses the criteria that indicate when it’s time to conduct an audit for your Benefit Plan. For more information about our Employee Benefit Plan Audit services call 574.289.4011 or visit klcpas.com/services/ebp-audits. To Read More »

Tax Breaks To Consider During National Small Business Week

The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider. 1. Claim bonus depreciation or a Section 179 deduction for asset additions Under current law, 100% first-year bonus depreciation is available for qualified new and used property Read More »

Additional Funding Available Through Manufacturing Readiness Grants

This summer, The Indiana Economic Development Corporation and Conexus Indiana announced that the Manufacturing Readiness Grants would be extended through June 2023. What does this mean for Hoosiers? An additional $20 million is available for Indiana companies investing in smart manufacturing technologies. The Manufacturing Readiness Grants, which debuted in 2020, was created to stimulate private Read More »

Want to find out what IRS auditors know about your business industry?

In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use Read More »

Is an LLC the right choice for your small business?

Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might be Read More »

Aaron O’Dell Breaks Down What He Enjoys Most About Employee Benefit Plan Audits

In this video, Aaron O’Dell talks about how Kruggel Lawton’s ability to specialize in Employee Benefit Plans year-round allows the firm to build stronger relationships with our clients and quickly solve issues that arise in more complex plans. For more information about our Employee Benefit Plan Audit services call 574.289.4011 or visit klcpas.com/services/ebp-audits. To learn more Read More »

An S Corporation Could Cut Your Self-Employment Tax

If your business is organized as a sole proprietorship or as a wholly owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation. Fundamentals of self-employment tax The self-employment tax is imposed on 92.35% Read More »

5 Ways Nonprofits can Prepare for an Audit

No nonprofit looks forward to annual audits. But regular maintenance and preparation specific to an impending audit can make the process less disruptive. We recommend taking the following steps. 1. Reconcile routinely You shouldn’t wait until audit time to reconcile accounts — for example, cash, receivables, pledges, payables, accruals and revenues. Reconcile general ledger account Read More »

Is Your Nonprofit Complying With Federal Procurement Requirements?

“Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (Uniform Guidance) applies to all not-for-profits that accept federal funding. It has been updated and amended several times, most recently in 2020. So if you haven’t reviewed your own organization’s procurement policies lately, now’s a good time to ensure you’re in compliance. Pay attention Read More »

Q3 Tax Calendar: Key Deadlines for Businesses And Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Monday, Read More »

What You Should Know About the Employee Retention Tax Credit

If the Employee Retention Tax Credit (ERTC) has been on your mind lately, you’re not alone. Many companies are looking for guidance on how to unlock the ERTC to offset business losses. The following chart shows how the ERTC has evolved, from how the ERTC functioned in 2020 under the Consolidated Appropriations Act (CAA), to Read More »

Recordkeeping Dos and Don’ts For Business Meal And Vehicle Expenses

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting Read More »

Michigan Announces $2M in Covid-19 Workplace Safety Grants

Small business owners in Michigan can now apply for the State’s Covid-19 Safety Grant Program. Totaling $2M, these grants will provide Michigan businesses with less than 250 employees, including eligible childcare centers, matchings funds of up to $10,000 to decrease the risk of Covid-19 spread through safety and health-related equipment purchased and training. Applications are Read More »

IRS Has Announced 2022 Amounts For Health Savings Accounts

The IRS recently released guidance providing the 2022 inflation-adjusted amounts for Health Savings Accounts (HSAs). Fundamentals of HSAs 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 Read More »

Michigan Outlines Tax Benefits Available to Military Members and Veterans

The Michigan Department of Treasury reminds current and former military members of various individual income tax and property tax benefits they may be entitled to receive from the state. (News release, Mich. Dept. Treas., 05/20/2021.) Benefits available. Current and former military members may be eligible to receive the following benefits: Military pay tax exemption. Military pay is Read More »

Using Alternative Energy Technologies Offers Tax Benefits for Businesses

The credit is intended primarily for business users of alternative energy (other energy tax breaks apply if you use alternative energy in your home or produce energy for sale). Eligible property The business energy credit equals 30% of the basis of the following: Equipment, the construction of which begins before 2024, that uses solar energy Read More »

Michiana Benchmark Business Index Surges in First Quarter

DOWNLOAD PDF: Q1 2021 Michiana Benchmark Business Index by Kruggel Lawton The first quarter 2021 Michiana Benchmark Business Index, compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, surged in the first quarter of the year to the second-highest score in the more than ten years since the survey began.  The Read More »

Simple Retirement Savings Options for Your Small Business

Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved in providing a traditional pension plan? Two options to consider are a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended as an Read More »

Tax Advantages of Hiring Your Child at Your Small Business

As a business owner, you should be aware that you can save family income and payroll taxes by putting your child on the payroll. Here are some considerations. Shifting business earnings You can turn some of your high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child as wages for Read More »

Need A New Business Vehicle? Consider A SUV

Are you considering buying or replacing a vehicle that you’ll use in your business? If you choose a sport utility vehicle (SUV), you may be able to benefit from lucrative tax rules for those vehicles. Bonus depreciation Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired and Read More »

April 15th Still Matters!

The IRS has announced that the federal income tax filing deadline for individuals for the 2020 tax year is extended from April 15, 2021, until Monday, May 17, 2021. However, as of March 22, there remain meaningful reasons why individual taxpayers should still work to complete and file their returns by April 15, 2021. This Read More »

New Legislation Proposes To Help “Rescue” Nonprofits

No one needs to tell nonprofit organizations how tough the past year has been. According to the John Hopkins Center for Civil Society Studies, 7.7% of not-for-profit workers — nearly one million people — lost their jobs between February 2020 and January 2021. An even higher percentage of arts and education organizations lost jobs last Read More »

Business Highlights In The New American Rescue Plan Act

President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) on March 11. While the new law is best known for the provisions providing relief to individuals, there are also several tax breaks and financial benefits for businesses. Here are some of the tax highlights of the ARPA. The Employee Retention Credit (ERC). This Read More »

If You Run A Business From Home, You Could Qualify For Home Office Deductions

During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the Read More »

What are the tax implications of buying or selling a business?

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Under current tax law, a transaction can basically be structured Read More »