Looking ahead to 2025 tax limits as you prepare to file your 2024 return
Many people are more concerned about their 2024 tax bills than they are about their 2025 tax situations. That’s because 2024 individual tax returns are due to be filed by April 15. However, it’s a good time to acquaint yourself with tax amounts for this year, some of which have increased due to inflation. For example, the amount of your earnings taxed for Social Security in 2025 is $176,100 (up from $168,600 in 2024). For 2025, the standard deduction amount is $30,000 for married joint filers (up from $29,200). For singles, the amount is $15,000 (up from $14,600) and for heads of households, it’s $22,500 (up from $21,900). Questions? Contact us.
So many KPIs, so much time: An overview for businesses
From the moment they launch their companies, business owners are urged to use key performance indicators (KPIs) to monitor performance. As you may have noticed, however, there are so many to choose from. To make picking KPIs easier, separate them into two broad categories: financial and nonfinancial. Examples of financial KPIs include debt to equity (total debt / shareholders’ equity), which is good for monitoring growth, and current ratio (current assets / current liabilities), which helps manage cash flow. Nonfinancial KPIs can allow you to set goals and track progress in areas such as customer service, sales, marketing and production. Contact us for more information.
Early bird tips: Answering your tax season questions
The IRS will start the 2025 filing season for individual income tax returns on Jan. 27. Even if you usually don’t file until April, you may want to file early. It can potentially protect you from tax identity theft. In this crime, a thief uses your personal information to file a fraudulent return early in the filing season and claim a bogus refund. Another benefit of early filing is that if you’re getting a refund, you’ll get it faster. This year, the filing deadline to submit 2024 returns, file for an extension and pay tax owed is generally April 15. If you’re requesting an extension, you’ll have until Oct. 15 to file. Contact us for an appointment to prepare your return.
The standard business mileage rate increased in 2025
The optional standard mileage rate used to calculate the tax-deductible cost of operating a business vehicle increased in 2025. The IRS announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck is 70 cents. In 2024, the rate was 67 cents per mile. The standard rate is useful if you don’t want to track actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip. The standard mileage rate is adjusted annually and calculated based on driving costs, including the price of gas. According to AAA, the national average price of a gallon of regular gas on Jan. 17 was $3.11.
3 ways businesses can get more bang for their marketing bucks
Small to midsize businesses generally don’t have massive marketing departments with limitless resources. You’ve got to pursue savvy campaigns while controlling costs. Here are three ways to get more bang for your marketing bucks: 1) Set a budget and adjust it regularly by comparing “marketing spend” with return on investment. 2) Use metrics and technology. Relevant metrics may include lead conversion rate and customer acquisition cost. Search engines and social media channels can provide insightful analytics. 3) Avoid common mistakes, such as not defining your target audience, overinvesting in paid ads and ignoring the power of referrals. Contact us for help managing your marketing costs.
Do you have questions about taking IRA withdrawals? We’ve got answers
You can’t keep funds in your traditional IRA indefinitely. You must start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 73. You must take your first RMD by April 1 of the year following the year in which you turn 73, regardless of whether you’re still employed. The RMD for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” If you take money out of a traditional IRA before age 59½, you may be subject to a 10% penalty tax and income tax on the distribution. Contact us with any questions.
Small business strategy: A heavy vehicle plus a home office equals tax savings
Your small business may be eligible for big first-year Section 179 depreciation tax deductions for new and used heavy SUVs, pickups and vans placed in service in 2025. You must use the vehicle more than 50% for business. The write-off will reduce your federal income tax and self-employment tax bill, if applicable. This tax break is only available for a purchased (not leased) SUV, pickup, or van with a manufacturer’s gross vehicle weight rating above 6,000 pounds. The 2025 limit on Sec. 179 deductions for heavy SUVs $31,300. First-year depreciation deductions for lighter vehicles are subject to smaller depreciation limits of up to $20,400 in 2024. (The 2025 amount hasn’t come out yet.)
NEWS UPDATE ON RECENT BENEFICIAL OWNER INFORMATION – FEBRUARY 10, 2025
The Department of Treasury through the Department of Justice has filed an appeal with the U.S. District Court for Eastern District of Texas on the Smith vs U.S. Department of Treasury case to overturn the preliminary reporting injunction. FINCEN posted an alert on its website that if the district court’s order is overturned and the […]
UPDATE ON RECENT SUPREME COURT RULING ON BOI – JANUARY 25, 2025.
On January 23rd the Supreme Court of the United States ruled to overturned the nationwide injunction on the Texas Top Cop v. McHenry case requiring entity’s to report Beneficial Owners Information ‘BOI” to Financial Crimes Enforcement Network “FINCEN”. FINCEN posted an alert on its website that the BOI reporting requirement is still VOLUNTARY as a […]
How companies can better control IT costs
Does your company keep blowing its information technology (IT) budget? You may be able to control these costs better through various proactive measures. First, establish a coherent IT philosophy to guide your spending and help you develop clear IT governance policies and procedures. Second, conduct regular IT audits. These are formal, systematic reviews of your IT infrastructure, policies, procedures and usage that can reveal redundant subscriptions, underused software and outdated hardware. Last, keep a close eye on the cloud services you pay for. Many businesses neglect to claim usage-based discounts or lower rates. Contact us for help better identifying and analyzing your IT costs.
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