All insights by: Kruggel Lawton CPAs

2023 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 2023. 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. July Read More »

Retirement Saving Options for Your Small Business: Keep it Simple

If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended Read More »

The Tax Advantages of Hiring Your Child this Summer

Summer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by hiring your child and putting them on the payroll. It’s a win-win! Here are Read More »

Protect the “Ordinary & Necessary” Advertising Expenses of Your Business

Under tax law, businesses can generally deduct advertising and marketing expenses that help keep existing customers and bring in new ones. This valuable tax deduction can help businesses cut their taxes. However, in order to be deductible, advertising and marketing expenses must be “ordinary and necessary.” As one taxpayer recently learned in U.S. Tax Court, Read More »

2023 Q2 Tax Calendar: Key Deadlines for Businesses and Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2023. 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 Read More »

Key Tax Issues in M&A Transactions

Merger and acquisition activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But some analysts expect 2023 to see increased M&A activity in certain industries. If you’re considering Read More »

Give Your Organization’s Members a Reason to Renew

When inflation is high, it’s common for people to cut expenses by deciding not to renew subscriptions and memberships. For charities and associations that depend on membership fees, this trend can be distressing — if not catastrophic. If your not-for-profit’s membership rolls are declining due to nonrenewals, you need to address the problem immediately. Here are Read More »

Forms W-2 and 1099-NEC are Due to be Filed Soon

With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms: Form W-2, Wage and Tax Statement. W-2 forms show the wages paid and taxes withheld for the year for each employee. They must Read More »

Secure 2.0 Act of 2022 Introduces Key Changes for Workplace Retirement Plans

The Consolidated Appropriations Act, 2023 (Public Law No. 117-328) that was signed into law on December 29, 2022 by President Joe Biden includes the SECURE 2.0 Act of 2022, which introduces over 90 changes to the federal rules governing workplace retirement plans. This landmark legislation builds on the original SECURE Act that was enacted on Read More »

IRS Delays Implementing Lower Threshold for Third-party Payment Platforms

The IRS recently announced a delay in reporting thresholds for third-party settlement organizations (TPSOs) like PayPal, Venmo, Etsy and Poshmark, set to take effect for the 2022 tax filing season. As a result, TPSOs will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for Read More »

New Filing Requirements for Indiana Nonprofits

The Indiana Department of Revenue recently announced an update to Information Bulletin #17 on taxation and filing requirements of nonprofit organizations. Through calendar year 2022, nonprofits must submit Form NP-20 on or before the 15th day of the 5th month following the close of the taxable year. Starting in 2024, Indiana nonprofits will begin filing Read More »

What Local Transportation Costs Can Your Business Deduct?

You and your small business are likely to incur a variety of local transportation costs each year. There are various tax implications for these expenses. First, what is “local transportation?” It refers to travel in which you aren’t away from your tax home (the city or general area in which your main place of business Read More »

2022 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 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. Note: Read More »

Separating Your Business from its Real Estate

Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability and estate planning advantages of separating real estate ownership from the business. Tax Read More »

IRS Extends Portability Election to Five Years

VIDEO: Patrick Lee, CPA, discusses the 2022 portability election extension.  The IRS recently announced an extension to the two-year portability election, or unused estate tax exclusion, for surviving spouses. This decision to change the election period to five years was made in response to the backlog of taxpayer requests and the number of late filings. Read More »

Promoting Your Nonprofit with Your Annual Report

Do you think about your nonprofit’s annual report as a yearly obligation or even an unpleasant chore? If so, your annual report likely isn’t much fun to read — and you’re missing a chance to attract and engage critical audiences. Instead, embrace this opportunity to communicate the good your organization does and promote your mission Read More »

The Tax Obligations if Your Business Closes its Doors

Sadly, many businesses have been forced to shut down recently due to the pandemic and the economy. If this is your situation, we can assist you, including taking care of the various business tax responsibilities that must be met. Of course, a business must file a final income tax return and some other related forms Read More »

2022 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 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. August Read More »

Nonprofits: Tips for Getting the Grant

There are thousands of grants and millions of dollars available to nonprofits from the federal government, states, foundations and other sources. Unfortunately, you can’t just ask nicely and expect to receive them. Qualifying for the funding your organization needs generally requires you to submit thorough, professional and compelling grant proposals. Here are a few tips. Read More »

Help When Needed: Apply the Research Credit Against Payroll Taxes

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses Read More »

IRS Announces Midyear Increase to Mileage Reimbursement Rate

This summer, the IRS announced a mid-year increase to the optional standard mileage to help taxpayers using their personal vehicles for business and certain other purposes. Effective July 1, 2022, the reimbursement rate will increase 4 cents to 62.5 cents per mile. Medical and moving expense rates will also see an increase of four cents Read More »

Businesses: Prepare for the Lower 1099-K Filing Threshold

Businesses should be aware that they may be responsible for issuing more information reporting forms for 2022 because more workers may fall into the required range of income to be reported. Beginning this year, the threshold has dropped significantly for the filing of Form 1099-K, “Payment Card and Third-Party Network Transactions.” Businesses and workers in Read More »

What Charitable Givers Need to Know About Taxes

Although most charitable donors aren’t primarily motivated by potential tax breaks, they still need to know how donations affect their taxes. It’s important for your not-for-profit to educate them — particularly as tax laws change. For example, in 2020 and 2021, even nonitemizers were allowed to deduct up to $300 and itemizers could deduct cash Read More »

Michiana Benchmark Business Index Slides Further in 1st Quarter

DOWNLOAD PDF: Q1 2022 Michiana Benchmark Business Index by Kruggel Lawton Based on input from CFOs in for-profit companies in the South Bend/Elkhart & southwest Michigan region, the first quarter 2022 Michiana Benchmark Business Index declined for the second quarter in a row, after setting a record high in the third quarter of 2021. The Read More »

Indiana Residents to Receive Automatic Taxpayer Refund

  Under Indiana’s “Use of Excess Reserves” law, many Hoosiers will receive a one-time taxpayer refund later this year. While the Automatic Taxpayer Refund is separate from any individual income tax refund, many Indiana resident’s will receive $125, with married couples filing jointly receiving $250. The state is returning $545 million to Hoosiers after ending Read More »

Tips to Prepare for Your Nonprofit’s Year-End Audit

Preparing for a year-end audit can be extremely time consuming, but with regular maintenance you can make the process much smoother. Here are five tips to help you avoid unnecessary stress during your year-end audit. Document any internal control changes With many organizations transitioning to hybrid or remote working environments, it is important to make Read More »

Fully Deduct Business Meals This Year

The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So, you can Read More »

2022 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second 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 Read More »

Important Tax Aspects of Operating Your Business As A Sole Proprietor

If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, you need to know about the tax aspects of your venture. Here are eight important issues to consider: You report income and expenses on Schedule C of Form 1040. The net income is taxable to you regardless of Read More »

Can You Deduct the Costs of a Spouse on a Business Trip?

If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips. The rules for deducting a spouse’s travel costs are very restrictive. First of all, to qualify, your spouse must be your employee. This means you can’t deduct the Read More »

Michigan Department of Treasury to Administer Afflicted Business Relief Grant Program

Under the Afflicted Business Relief (ABR) Grant Program, the Michigan Department of Treasury will be administering $409 million to help Michigan businesses that experienced financial hardship due to Covid-19. Eligibility Requirements Michigan businesses that were in operation on October 1, 2019, are eligible to apply for an ABR grant if: Your business satisfies all of Read More »

Abandoned 401(k) Accounts and the Great Resignation

The trend of U.S. workers leaving their jobs and employers struggling with high levels of employee turnover continues to gain momentum. Another 4.5 million U.S. workers quit their jobs in November alone, according to data from the U.S. Bureau of Labor Statistics. Meanwhile, the number of job openings in the United States remains elevated at Read More »

Handle Your Nonprofit’s Restricted Gifts with Care

Most not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who place restrictions on their gifts — and these require a higher level of responsibility. If your nonprofit fails to use a restricted donation as intended, Read More »

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 »

Michiana Benchmark Business Index Cools Off in 4th Quarter

DOWNLOAD PDF: Q4 2021 Michiana Benchmark Business Index by Kruggel Lawton The fourth quarter 2021 Michiana Benchmark Business Index, compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, declined from the record high level set in the previous period. The fourth quarter Benchmark Index was 74.83 out of a maximum possible 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 »

Will the standard business mileage rate go up in 2022? Yes!

After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will 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 »