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 »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number. Entrepreneurs often don’t know Read More »
Aaron O’Dell is one of the most knowledgeable members of Kruggel Lawton when it comes to Employee Benefit Plan Audits. Watch this short video to learn how he found his niche in Benefit Plans and how his experiences helped him become an expert in the field. For more information about our Employee Benefit Plan Audit Read More »
“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 »
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 »
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 »
Starting July 15, many families will begin receiving advance payments of their 2021 Child Tax Credit. Signed into law in March as a part of the American Rescue Plan, the expanded Child Tax Credit provides financial help for families with children under the age of 18. The maximum credit for children under the age of Read More »
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 »
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 »
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 »
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 »
Many businesses use independent contractors to help keep their costs down. If you’re among them, make sure that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be a costly error. It can be complex to determine whether a worker is an independent contractor or an Read More »
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 »
Owners of incorporated businesses know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Thus, if funds are paid as dividends, they’re taxed twice, once to the Read More »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
Many organizations get stuck in procedural ruts because it’s easier in the short term to continue doing things the way they’ve always been done. But it generally pays to regularly review your not-for-profit’s accounting function for inefficiencies and oversight gaps. You might plan to conduct a review once a year or perform an assessment whenever Read More »
A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown of those that Read More »
Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind. A cap on deductions Cars are subject to more restrictive tax depreciation rules than those that apply to other depreciable assets. Under so-called “luxury auto” rules, depreciation deductions are artificially “capped.” So is the Read More »
Holiday-inspired generosity and the desire to reduce tax liability makes the end of the year a busy time for charitable giving. According to Network for Good and other sources, approximately 30% of charitable gifts are made in December alone. For nonprofits, an important part of processing these donations is sending thank-you letters that acknowledge Read More »
Does anyone actually read footnotes? If they’re financial statement footnotes, the answer is usually “yes.” Footnotes can provide donors, governmental supporters and other stakeholders with critical information about your not-for-profit. So it’s important to work with your CPA to make sure your footnotes are accurate and thorough. Operations and accounting policy snapshot One important Read More »
First and foremost, we want you to know that the staff and leadership of Kruggel Lawton offer our most sincere condolences to you and your family following the death of your loved one. Death is an emotional and troubling reality, and navigating the complicated and often overwhelming landscape of tax requirements after someone dies can Read More »
If your small business is planning for payroll next year, be aware that the “Social Security Wage Base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers Read More »
Michiana Benchmark Business Index (BBI), is produced by the certified public accounting and consulting firm of Kruggel Lawton CPAs using data independently collected from CFOs and senior-level financial officers of major businesses and corporations in Indiana and Michigan. The third quarter 2020 Michiana Benchmark Business Index (BBI) improved after dropping to historically low levels in Read More »
Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against Read More »
DOWNLOAD GUIDE CPA from a Forbes “America’s Best Tax Firms” answers your top questions about PPP Loan Forgiveness. In spring 2020, no one could have estimated the effect COVID19 would have on our economy and our communities. It quickly became apparent that Congress would have to act fast to provide some Read More »
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. 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. Read More »
This information was provided directly by The Indiana Department of Revenue as an Agency Announcement. DOR urges Hoosiers to take immediate action to avoid additional penalties and interest. The Indiana Department of Revenue (DOR) is starting to send tax bills that were delayed earlier this year due to tax filing and payment extensions related to Read More »
For a high-net-worth individual or a closely-held business owner or entrepreneur, the desire to fly privately rather than via commercial airline has its advantages. The ability to travel on short notice and to remote destinations that are not serviced by major airports, while at the same time mitigating security concerns and experiencing unparalleled privacy, Read More »
The CARES Act, an economic stimulus bill passed in March in response to the impacts of COVID-19, includes $175 billion in relief funds for hospitals and healthcare providers that have been financially affected by the coronavirus outbreak. Eligible recipients include dental providers with a valid Taxpayer Identification Number (TIN), and all interested dental providers Read More »
The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive and there may be opportunities for some businesses to file amended tax returns. If you hold an interest in a business, or may do so in the future, here is more information Read More »
Due to a COVID19-related backlog at the IRS, some taxpayers’ checks may still be unopened. You may find that the IRS has not given you credit for payments made on time, even well before the deadline. Do not be alarmed. The IRS will post these checks on the date received rather than the date the Read More »
If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial Read More »
If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies in the way partnerships and Read More »
Michiana Benchmark Business Index (BBI), is produced by the certified public accounting and consulting firm of Kruggel Lawton CPAs using data independently collected from CFOs and senior-level financial officers of major businesses and corporations in Indiana and Michigan. In the second quarter of 2020, the overall BBI recovered slightly after a precipitous drop in the Read More »
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