Watch out for tax-related scams
Victims of tax-related scams can be contacted through regular mail, phone calls and email. If you receive a text, letter, email or phone call purporting to be from the IRS, keep in mind that the tax agency never calls taxpayers demanding immediate payment using a specific method of payment (such as a wire transfer or prepaid debit card). The IRS generally mails bills or notices to taxpayers and gives them time to respond with questions or appeals. The tax agency also doesn’t threaten taxpayers with arrest. In addition, the IRS doesn’t initiate contact by email, text message or social media channels to request information. Contact us if you have questions about a letter, email or call from the IRS.
Laptop battery safety is no laughing matter
You’d be hard pressed to find a business today that doesn’t have at least one laptop computer listed among its assets. Poorly maintained or damaged batteries can catch fire, putting people and property at risk. Faulty batteries can also hamper the functionality and lower the lifespan of the devices. Various best practices can help. Require the use of only compatible computer batteries or chargers. In addition, provide training to employees on how to safely use, transport and store their laptops to avoid battery damage. Laptop manufacturers can be valuable resources for the latest info on safety concerns and recalls. Contact us for more information.
Take advantage of the gift tax exclusion rules
As we head toward gift-giving season, you may be considering giving cash or securities to your loved ones. Taxpayers can transfer amounts free of gift taxes to their children or others each year through the use of the annual federal gift tax exclusion. For 2019, the exclusion is $15,000 to each person. If you’re married, gifts made during a year can be treated as split between you and your spouse. By “gift-splitting,” up to $30,000 a year can be transferred to each person by a married couple, because two annual exclusions are available. If you give appreciated assets to loved ones in lower tax brackets, they may be able to pay a 0% long-term capital gains tax rate. Contact us with questions.
The chances of an IRS audit are low, but business owners should be prepared
As a business owner, are you worried about an IRS audit? The good news is that the odds against being audited are in your favor. The IRS audited 0.6% of individuals in fiscal year 2018. Businesses and high-income people are more likely to be audited, but audit rates are historically low. However, some tax return items may raise red flags with the IRS, such as major inconsistencies between previous years’ filings and the current one, profit margins or expenses markedly different from those of similar businesses, and unusually high deductions. If the IRS selects you for an audit, we can help you understand what it’s disputing, gather the needed documents, and respond to the inquiries effectively.
Does your team know the profitability game plan?
Right now, football teams are trying to put as many wins on the board as possible to make this a special season. Sports can highlight important lessons for business owners about profitability. One is that companies must learn from their mistakes and adjust their profitability game plans accordingly. Typical fumbles include poor customer service, ineffective pricing strategies and a broken-down supply chain. After identifying profit fumbles, fortify your offensive line by defining (or redefining) a feasible profit game plan, appointing team leaders to champion each initiative and communicating the plan clearly to build consensus. Contact us for help.
When is tax due on Series EE savings bonds?
Do you have Series EE U.S. savings bonds that were bought many years ago, and you now wonder how the interest on them is taxed? EE bonds don’t pay interest currently. Instead, the accrued interest is reflected in their redemption value. (However, owners can elect to have the interest taxed annually.) EE bond interest isn’t subject to state income tax. And using the money for higher education may keep you from paying federal income tax on the interest. Unfortunately, the law doesn’t allow for the tax-free buildup of interest to continue indefinitely. When the bonds reach final maturity, they stop earning interest. Contact us if you have questions about the taxability of savings bonds.
How to treat your business website costs for tax purposes
Most businesses have a website. But determining the proper tax treatment for the costs involved in developing a website isn’t easy. The IRS hasn’t yet released official guidance, so you must apply existing guidance that’s available on other costs to the issue of website development costs. The exact treatment of website design costs depends on whether they’re software or hardware and whether they’re part of a start-up business. If you hire third parties to set up and run your website, payments are currently deductible as ordinary and necessary business expenses. Contact us if you have questions or want more information about planning for website costs.
4 Trends Shaping Apartment Finance
Low interest rates are just one of the factors that are heating up the multifamily mortgage market, explains multifamily loan originator David A. Krebs.
Build-to-Rent Deals: Navigating the Legal Issues
Structuring transactions in this emerging asset class presents challenges that developers and investors should consider, advise attorneys from the law firm of Goulston & Storrs.
