Insights
Expanded Sec. 152 for Dependents
The Tax Cuts and Jobs Act broadened the Child Tax Credit and introduced some big changes to more qualifying taxpayers. Child Tax Credit If you have children or dependents under the age of 17, you may be able to annually reduce your federal tax bill by up to $2,000 (an increase of $1,000) for each…
Read MoreIRS Sends Warning Letter to Cryptocurrency Users About Reporting
Taxpayers who exchange cryptocurrency may receive a letter this month from the IRS regarding reporting issues. Due to the increase in popularity of cryptocurrency, the IRS is drawing its attention to taxpayers who may not accurately report or fail to report income and not pay taxes related to those transactions. The IRS began sending out…
Read MoreUncertain Future for CA Estate Tax
California is currently among 30 states that do not impose a state estate tax. State legislature, however, recently introduced Senate Bill SB 378 that would have imposed gift, estate and generation-skipping transfer taxes starting on January 1, 2021. California Estate Tax Proposal While the bill did not make a floor vote earlier in 2019, the…
Read MoreTop 5 Real Estate Accounting Mistakes
Even some of the savviest real estate brokers can get trapped in the most common accounting mistakes. There’s a similar thread of accounting mistakes woven throughout the real estate industry that creates challenges and complications come tax time. Many of these mistakes are financial oversights that end up causing complexity, and in some situations, extra…
Read MoreCA, You’re Not Alone – Treasury Bans All SALT Deduction Workarounds
The Treasury Department and the IRS recently issued final regulations blocking all states from trying to circumvent the tax reform’s $10,000 cap on state and local tax deductions. In September 2018, CA Governor Jerry Brown vetoed the proposed bill to workaround the federal SALT cap, anticipating future federal regulations to ban these state circumvention strategies.…
Read MoreCorporations Receive Tax Clarity for Offshore Profits
The IRS released highly-anticipated clarity for multinational corporations on how U.S. tax will be calculated on foreign income. Since the 2017 tax reform went into effect, American companies have expressed the ambiguity surrounding taxation on foreign profits, requesting more direction and transparency. Last month, the IRS responded with a new set of guidelines that lessen…
Read MorePresident Signs IRS Reform Bill
On July 1, President Trump signed into law the bipartisan IRS reform bill, the Taxpayer First Act, with plans to make overall improvements to the IRS. With changes in management and oversight, the Act implements a host of new developments in customer service, the process of appeals, technology infrastructure and cybersecurity, among others. Customer Service…
Read MoreNot-for-Profits Now Benefit from GAAP Alternatives
The Financial Accounting Standards Board (FASB) recently announced that it will now extend two of its private company accounting alternatives to include not-for-profit organizations through Accounting Standard Update (ASU) 2019-06. The Private Company Council (PCC), together with the FASB, did not include not-for-profit entities within the scope of the ASU issued in 2014 to simplify…
Read MoreRetirement Withdrawal Strategies
Are you retired or thinking about it? That probably means you are preparing to transition from a regular paycheck to drawing income from your investments. Don’t forget—taxes will follow you wherever you go. Creative tax strategies are just as important during retirement as they are when saving for it. Many retirees spend most of their…
Read MoreCloud-Based Versus On-Premise Software
Last month we announced our newest partnership with Acumatica to offer cloud-based ERP software services. But then we got to thinking—how do clients know which software solution is best for their business? So, we laid it all out, weighing the pros and cons of both cloud-based and on-premise software for you to decide. Before we…
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