How to leverage property management services to increase the sale value of residential property?
Property management services have emerged as a magical solution that help build trust, long-lasting relationship with the property owners as well as capture a considerable share of the sales market.
3 specialized IT leadership positions for growing businesses
Many businesses employ Chief Information Officers, Chief Technology Officers and Chief Digital Officers. But there are more specialized IT leadership roles to consider: 1) A Chief Information Security Officer to oversee ongoing data security efforts and monitor developing threats. 2) A Chief Technology Innovation Officer to identify opportunities for innovation and lead initiatives to accomplish chosen objectives. 3) A Chief Marketing Technologist to recommend new solutions and oversee the use of existing marketing tech. Whether at the C level or a more junior management level, these positions call for expenditures in hiring, payroll and benefits. We can help you explore their feasibility.
How will revised tax limits affect your 2022 taxes?
While Congress didn’t pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That’s because some tax figures are adjusted annually for inflation. It’s a good idea to familiarize yourself with tax amounts that have changed for this year. For example, the amount you have to earn in 2022 before you can stop paying Social Security on your salary has increased to $147,000 (from $142,800 for 2021). In 2022, you can contribute up to $20,500 to a 401(k) plan (up from $19,500 in 2021). You can contribute another $6,500 catch-up amount to a 401(k) if you’re age 50 or older. Contact us if you have questions or need more information.
Businesses with employees who receive tips may be eligible for a tax credit
Are you an employer who owns a business where tipping is customary for providing food and beverages? You may qualify for a valuable tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. You claim the credit as part of the general business credit. It’s equal to the employer’s share of FICA taxes paid on tip income in excess of what’s needed to bring your employee’s wages up to $5.15 per hour. In other words, no credit is available to the extent the tip income just brings the employee up to $5.15 per hour, calculated monthly. Other rules may apply. If you have any questions, don’t hesitate to contact us.
Business owners, do you need to step up your internal communications game?
Whether because of “the Great Resignation” or continuing pandemic-related anxieties, the labor market remains tight. This is putting pressure on business owners trying to keep and hire workers. One element that can make or break your employer brand is internal communications. Do you need to step up your game? Start by listening. Solicit employee feedback through a suggestion box or anonymous online tool. Hold town hall meetings in which you directly answer questions. Visit different departments or facilities to stay visible. Consider shadowing various employees for a day to learn about their jobs. Above all, manage your internal profile like the critical asset that it is.
Are you eligible for a medical expense tax deduction?
You may pay out a bundle in out-of-pocket medical costs. But can you deduct them on your tax return? It’s possible but not easy. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical expenses are deductible only if you itemize, which means that your itemized deductions must exceed your standard deduction. Eligible costs include hospital and doctor bills and many others. For example, they include: health insurance premiums, eyeglasses, hearing aids, most dental work, prescriptions, smoking-cessation programs and some costs of transportation to get to medical appointments. We can assess if you qualify for a deduction.
Defer tax with a like-kind exchange
Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in many markets (and higher resulting tax bills), the like-kind exchange strategy is attractive. A like-kind exchange is any exchange of real property held for investment or for productive use in your trade or business for like-kind investment, trade or business real property. Like-kind exchanges can be a great tax-deferred way to dispose of real property. Contact us if you have questions or would like to discuss the strategy further.
Commission fraud: When salespeople get paid more than they’ve earned
Many employees receive part of their compensation from sales-related commissions. Unfortunately, some of these workers occasionally may be tempted to abuse the commission system by falsifying sales or rates. Generally, this takes one of three forms: 1) invented sales, 2) overstated sales and 3) manipulated commission rates. This last scheme often involves the collusion of accounting employees, which makes segregating duties essential. Companies also should analyze commission and sales data for outliers, monitor employee emails and set realistic and achievable sales goals. Contact us for help.
Review your strategic plan … and look ahead
The end of one year and the beginning of another is an optimal time for business owners to look back on the preceding 12 calendar months and ask a deceptively simple question: How’d we do? Even if your strategic plan isn’t a detailed document replete with spreadsheets and pie charts, you can still review actual performance against it by assessing three areas: 1) HR, specifically, how has “the Great Resignation” affected your turnover rate? 2) Sales and marketing, for example, did you meet monthly sales goals and get good ROI on marketing efforts? 3) Production, for instance, is product quality slipping or customer satisfaction dropping? Contact us for help with strategic planning.
Gig workers should understand their tax obligations
The number of people engaged in the “gig” or sharing economy keeps growing. In an Aug. 2021 survey, the Pew Research Center found that 16% of Americans have earned money at some time through online gig platforms. Generally, if you receive income from being a rideshare driver, delivering food or providing other services, it’s taxable. That’s true even if the income comes from a side job and you don’t receive a 1099-NEC or other form reporting the money you made. You may need to make quarterly estimated tax payments because the income isn’t subject to withholding. Your business expenses may be deductible on your tax return, subject to the normal tax limits and rules. Contact us to learn more.