Russell Bedford - USA
Costs for Installing Medically Related Home Improvements Have Tax Benefits
May 2022
A medical expense deduction may be claimed when the primary purpose of a home improvement or modification is for a medical reason.
Tax-Free Gifting
May 2022
The estate tax is set to revert back to about half of the current lifetime gift and estate tax exclusion beginning in 2026.
Tax Effect of Short-Term Rentals
April 2022
The IRS assesses short-term rentals based on the facts and circumstances of each case. As each case is unique and one size doesn’t fit all, we can help you determine the classification along with structuring it favorably for tax purposes.
Tax Information Reporting Requirement for Cryptocurrency
April 2022
The IRS has been engaged in a virtual currency compliance campaign to address tax noncompliance related to cryptocurrency use. The first reporting forms related to cryptocurrency transactions will be issued to the IRS and crypto investors in January 2024.
Tax Benefits Available to Taxpayers with Disabilities
March 2022
Disabled individuals and parents of disabled children may qualify for a number of tax credits and other tax benefits. Learn about several tax credits and other available benefits if you or someone listed on your federal tax return is disabled.
What is Tax Basis and Why Is It So Important?
March 2022
For tax purposes, the term “basis” refers to the monetary value used to measure a gain or a loss. For instance, if you purchase shares of a stock for $1,000, your basis in that stock is $1,000. If you then sell those shares for $3,000, the gain is calculated based on the difference between the sale price and the basis: $3,000 – $1,000 = $2,000. This is a simplified example, of course. Under actual circumstances, purchase and sale costs are added to the basis of the stock.
How Can a Business Be Saved After the Owner Dies?
November 2021
When you’re in the midst of building or growing a business, the last thing on your mind is what happens if the owner suddenly dies. How does the business move forward if this tragic circumstance occurs?Back-Door Roth IRAs
September 2021
In 2021, taxpayers have an option to fund either a traditional IRA or Roth IRA, up to the maximum limit of $6,000 ($7,000 if you are age 50 or over). Both are good options, with different treatments. The traditional IRA lets you choose to deduct the contributions; however, future distributions are taxed at the then-current tax rates. Roth IRAs work differently as there is no deduction on the contributions, likewise, there is no tax when amounts are taken out. Further, Roth IRA does not require Required Minimum Distribution (RMD) and Roth IRAs can be passed down tax-free to heirs.
Tax Rules for Flipping Houses
August 2021
With mortgage rates at an all-time low, many people are exploring and undertaking the task of buying houses, renovating, making improvements, and selling them for hopefully more than their cost. This could be a profitable endeavor, however, there are tax consequences that should be factored in so you can generate expected returns.
Cray Kaiser Talks Hybrid Work Model
August 2021
We’ve all learned a number of things over this past year and a half, and most important is creating flexibility for our team members. To learn more about Cray Kaiser’s hybrid working arrangement, check out these audio blogs from one of our Senior Assurance Accountants, Kayla Daniels.
Using Installment Sales to Defer Taxes
July 2021
Selling a property one has owned for a long period of time will frequently result in a large capital gain. An installment sale could fend off taxes imposed at higher levels of income by spreading the income over multiple years.
The COVID Era, What We Learned
July 2021
The COVID era challenged the cliché “business as usual” and taught us a few things that will transform us in the months and years ahead as we open the economy and start gathering once again.
Tax Planning to Help New Franchisees
June 2021
When it comes to investing in a franchise, it's important to be familiar with the rules when it comes to your taxes.
Solar Tax Credit Extended for Two Years
May 2021
A federal tax credit for the purchase and installation costs of a residential solar system has been extended through 2023. The solar tax credit for 2021 and 2022 is 26% of the cost of the solar installation but drops to 22% for 2023, the final year of the credit (unless extended again by Congress).
Forming a Joint Venture: What You Need to Know
April 2021
When multiple business entities make a decision to start a new business together as a cooperative arrangement, they are creating what is known as a joint venture. In forming a joint venture, each of the involved entities agrees to what assets they will contribute, how they are going to distribute income and share expenses, and how the new entity will move forward.
Considerations and How to Apply for the Employee Retention Credit
March 2021
Through the Con App, taxpayers can now qualify for both Paycheck Protection Program (PPP) loans and Employee Retention Credits (ERC) simultaneously, as long as the specific payroll costs are used only once. As the first quarter of 2021 comes to an end, employers will have substantial planning and strategizing to do in order to maximize the benefits offered by both the ERC and PPP loans.
The Highlights of the American Rescue Plan Act (ARPA)
March 2021
On March 11, President Biden signed the American Rescue Plan Act (ARPA). In this blog are the highlights of the ARPA.
10 Financial Metrics Small Business Owners Should Know
March 2021
Owning and operating a small business can be both exciting and stressful. When it comes to financial statements, there is a lot of information at your disposal, so much so that you can easily suffer from “analysis paralysis” if you don’t understand what your financial metrics are trying to tell you or how they can be used to implement change.
The Tax Rules for Renting Your Home or Vacation Home for Short Periods
March 2021
Even if you rent out your property using rental agents or online rental services that match property owners with prospective renters (i.e. Airbnb, VRBO, HomeAway), it is still your responsibility to properly report the rental income and expenses on your tax return. You should be aware of some special tax rules for renting your home that probably apply to you.
Don’t Miss an Opportunity for a Spousal IRA
March 2021
One frequently overlooked tax benefit is the spousal IRA. Generally, IRA contributions are only allowed for taxpayers who have compensation. Spousal IRAs are the exception to that rule and allow a non-working or low-earning spouse to contribute to his or her own IRA, otherwise known as a spousal IRA, as long as the spouse has adequate compensation.
How to Obtain an Identity Protection PIN (IP PIN) in 2021
February 2021
Effective now, anyone can request an IP PIN, it is no longer limited to victims of identity theft. Given the uptick in unemployment tax fraud, where thousands of social security numbers were compromised, now is the time to consider obtaining the IP PIN.
Understanding the Revisions to the Employee Retention Credit in 2021
January 2021
On December 27, 2020, President Trump signed a number of bills, including one that breathes new life into the Employee Retention Credit (ERC). While the headline was that employers receiving Payroll Protection Program (PPP) loans could now also claim the ERC, did you know the credit was significantly enhanced?
Why You Should Hire a Tax Professional During the COVID-19 Pandemic
January 2021
The pandemic will have lasting tax implications that many people may have not considered. For some, it can mean simply reporting income or expenses differently. For others, it may mean having to pay additional income taxes that had not been planned for.
How to Claim Your Missing Stimulus Check on Your 2020 Tax Return
January 2021
These payments were meant to provide financial assistance to individuals and families struggling during the initial outbreak of the COVID-19 pandemic, but many people are reporting a missing stimulus check. In this blog we’ll go through the details of the stimulus checks and how to claim a missing check on your 2020 return.
How Much Do Charitable Donations Reduce Taxes in 2020?
December 2020
This time of year may have you wondering, how much do charitable donations reduce taxes? And what opportunities are there this year due to tax law changes? The good news is, due to the pandemic, tax rules have been adjusted to enhance the tax benefits of charitable giving.
Why the SBA is Questioning Borrowers with PPP Loans Over $2 Million
November 2020
The contemplation of free money had businesses scrambling to take out PPP loans, whether they were impacted by economic effects of COVID-19 or not. Therefore, the Treasury had initially indicated the need for all PPP loans to be audited, but later specified only those of $2 million or more would be subject to an audit.
10 Tips for Budgeting & How QuickBooks Online Can Help You
October 2020
While there are still likely to be uncertainties next year, better days are ahead! And in the meantime, you can start proactively planning for 2021 by creating a budget. Your budget will increase your awareness of all of your projected income and expenses, which may make it less likely that you’ll find yourself constantly running short on funds.
Hiring Your Children in the Family Business Can Result in Big Tax Breaks
September 2020
With jobs at a premium during the COVID-19 pandemic, you might consider hiring your children to help out in your business. Rather than helping to support your children with your after-tax dollars, you can instead hire them and pay them with tax-deductible dollars. Of course, the employment must be legitimate and the pay commensurate with the hours and the job worked.
How States are Reshaping Nexus Laws for Remote Employees Due to COVID-19
September 2020
As more and more organizations make the decision that their staff members can work from home either permanently or on a long-term basis, they may need to take a closer look at how nexus laws will be addressed — especially as several state governments are beginning to address work-from-home employees in terms of nexus and on tax revenue.
Do You Know the Gain on Home Sale Rules?
August 2020
The rules surrounding the sale of one’s principal residence have changed over the years. It used to be that you could simply rollover your gain on a tax-free basis as long as you reinvested the proceeds into a new principal residence. However, those gain on home sale rules have since been eliminated and replaced with a principal residence exclusion. Here’s how it works:
Why It’s Important to Keep and File IRS Notice 1444
August 2020
The IRS is mailing all recipients of economic impact payments, commonly referred to as stimulus checks, a copy of Notice 1444 that provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.
Are You Leveraging the Biodiesel and Alternative Fuels Tax Credit?
July 2020
Many companies use alternative fuels in their operations, such as utilizing propane for their forklifts, but they may not be aware of the Biodiesel and Alternative Fuels tax credit. Prior to 2018, Congress allowed a credit of $0.50 per gasoline-gallon-equivalent used during the year on the company’s annual income tax return.
Does Your Business Qualify for the Research Tax Credit?
July 2020
When businesses hear about the research tax credit, they typically imagine that it’s for scientists in white lab coats. But that is not the case! The credit is actually much broader and more valuable than you might think.
Russell Bedford Launches Brand New Professional Development Package
June 2020
Realise your potential. Believe in your ability. Plan for your future. Develop your path to success.
It’s Finally Here: Guidance on PPP Loan Forgiveness
June 2020
The Small Business Administration (SBA) released guidance on May 22, 2020 specifically related to the loan forgiveness piece of the Payroll Protection Program (PPP) loan. Although we received a glimpse of this guidance in the most recently released loan forgiveness application there were some new developments that we wanted to clarify.
Why You Should Update Your Will or Trust in 2020
June 2020
When was the last time you or your attorney reviewed or made an update to your will or trust? If it was before the passage of the 2017 Tax Cuts and Jobs Act (TCJA), your documents may be out of date.
Do I Need to Consider Returning My PPP Loan Funds?
May 2020
We recently provided guidance on how to spend your Paycheck Protection Program (PPP) loan funds in order to receive maximum forgiveness. However, we’re now being asked a new question: “Should I return the PPP funds I’ve received?”
I’m Self-Employed. What Do I Need to Know About Taxes?
May 2020
Self-employed individuals, unlike employees, don’t have an employer withholding federal (and state, where applicable), Social Security or Medicare (FICA) taxes tax from their wages during the year.
Is Cofounder Conflict Threatening Your Business?
April 2020
While it’s absolutely true that founding a business with at least one other person increases your chances of becoming a success, it’s equally true that about 50% of cofounder relationships fail, and most of those failures aren’t pretty.
Your Top 3 Questions About the PPP Loan Application Process Answered
April 2020
On Friday, April 3, 2020 many financial institutions began accepting applications for the Paycheck Protection Program (PPP) loans as provided for in the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act.
How To Conceptualize Financial Results as a Small Business Owner
February 2020
Whether you’re a serial entrepreneur or simply looking to grow your small business to a sustainable level, it’s crucial to have an understanding of your venture’s financial results. While small businesses don’t require the same horsepower in their accounting department—or even require an accounting department at all yet—as large companies and quickly-growing startups, it’s still integral for entrepreneurs of all calibers to have an iron grip on their financial controls, processes, and results to prevent roadblocks.
A Primer on the Complexities of Gift Tax and Estate Tax
February 2020
You likely already know that the tax code places limits on the amounts that individuals can gift to others (as money or property) without paying taxes. This limit is meant to keep individuals from using gifts to avoid the estate tax that is imposed upon inherited assets. It can be a significant issue for family-owned businesses when the business owner dies, and the business has to be sold to pay the resulting inheritance (estate) taxes. This is, in large part, why high-net-worth individuals invest in estate planning.
Revolutionizing Your Accounting Processes with Automation & Applications
February 2020
As a small business owner, you wear several hats ranging from accounting, marketing, and hiring. Accounting may not be your passion but keeping your books up to date and organized is crucial to your success. Meaningful financial statements can be a click away through applications and the automation of your accounting tasks. In this blog we’re providing an overview of a few ways to free up your time so you can spend it on other aspects of your business.
Do You Know the Tax Advantages of Employer-Offered Benefits?
January 2020
Which benefits offered by your employer are you taking advantage of? Do you know all of the benefits available to you? Not only do many employer-offered benefits provide impactful resources to you and your family, but some save you significant money and taxes. Below is a list of benefits that your employer may offer and the tax benefits of each. If you’re unsure of what is available to you, we recommend asking your employer for more information.
The Opportunities and Challenges from the Newly Passed SECURE Act
January 2020
While there were some provisions which changed how an employer’s retirement plan operates, our focus here is on the changes to individuals. In our opinion, the individual changes are quite significant. Here is a look at some of the more important elements of the SECURE Act that have an impact on individuals.
What Is the Statute of Limitations on Unpaid Taxes?
January 2020
Tax debt can quickly snowball from interest, penalties, late fees, and the amount of the taxes due. And if you have unpaid taxes that you haven’t yet been making payments toward, it might make you fearful that the IRS will come knocking one day. However, a lot of the scaremongering surrounding the IRS is largely sensationalized in media and daily conversation.
Are You Prepared for the January 31st 1099-MISC Filing Date?
January 2020
Because so many fraudulent tax returns are filed right after e-filing opens up in January, the IRS requires 1099-MISCs for NEC to be filed by January 31st and will not release refunds for individual income tax returns that include the earned income tax credit until the NEC amounts can be verified.
A Digital World, A Digital Firm: Three Characteristics of a Forward-Thinking Accounting Firm
December 2019
The digital world is not only here, but it’s continuing to evolve and impact all aspects of our lives – accounting included. Last month the CK team took a trip to Silicon Valley for the QuickBooks Connect conference and we were reminded just how much technology has impacted the way in which we serve our clients. Technology has changed the way accounting departments are structured, how they communicate and the actual production of financial reporting.
Nonprofit Crowdfunding 101
December 2019
These days all it takes is a cause, an email address, and social media to start raising funds. If done properly you might find yourself meeting your goals in no time. But before you get started with your crowdfunding endeavor, especially as a nonprofit organization, there are a few tips and tax considerations to consider.
Year-End Payroll Checkup: 3 Most Commonly Missed Fringe Benefits on W-2s
November 2019
With the year soon coming to an end, it’s time to think about year-end tax compliance, including W-2 reporting. While your outside payroll provider can report usual salary and wages without any issues, we often see errors in which employers don’t provide the W-2 preparer with taxable non-cash fringe benefits. Fringe benefits must be computed and included in employees’ wages prior to December 31 in order to allow for the timely withholding and depositing of payroll taxes.
The Tax Implications of Master Limited Partnerships
November 2019
Over the last few decades, Master Limited Partnerships (MLPs) have gone mainstream. But what are MLPs? They are companies structured as partnerships and traded on the stock exchanges. You can buy units of the partnership as easily as you can buy common stock.
Profit Center Reporting: A Hidden Gem
October 2019
Profit center reporting is a tool that management can use to review operational profit and loss results for a department, branch, product line, location or activity.
It’s Never Too Early: Looking Ahead to 2019 Taxes
October 2019
It’s Never Too Early: Looking Ahead to 2019 Taxes
The IRS Has Its Eyes on Cryptocurrency
October 2019
There are a multitude of ways that technology has turned our world upside down. One of the most recent examples is cryptocurrency.
What You Need to Know About Foreign Account Reporting Requirements
September 2019
Do you have a financial interest in, signature, or other authority over any foreign financial account? If you do, don’t forget that you’ll need to report that relationship by filing FinCEN Form 114. While the due date for 2018’s report was April 15, 2019, there was an automatic six-month extension to October 15, 2019. If you fail to file you may face harsh penalties.
How to Properly Account for Your Nonprofit Fundraising Event
September 2019
If your tax-exempt nonprofit organization utilizes annual fundraising events to raise money, you’re not alone. And for many small to mid-size nonprofits, these special events are major sources of revenue that support internal operations which deploy the organization’s mission. However, with these events comes additional recordkeeping and IRS reporting responsibilities that many organizations overlook.
Does Your Business Need a Financial Statement Audit?
September 2019
As businesses are formed and as they grow, one question often asked by owners and chief financial officers is whether their companies would benefit from an audit. As you might have guessed, the answer depends on a number of factors specific to each company. Below is helpful information about audits to keep in mind as you decide whether or not an audit is right for your business.
IRS Audits: Are You Next?
August 2019
Have you ever wondered what the odds are of your return being audited? This is somewhat of a mystery to taxpayers and unfortunately there is no concrete answer. Audits are generally selected at random, but there are a few things that may flag your return for an audit.
Why You Should Never Take on the IRS Alone
June 2019
It’s another normal day at the office, until you receive a letter from the IRS. You’re being audited. What do you do now? The first thing you should do is call your tax advisor! While you might be up to navigating an audit on your own, there are many reasons why utilizing a professional’s help will make or break the outcome of your audit.
How to Combat Common Payroll Fraud Schemes
June 2019
According to the Association of Certified Fraud Examiners, nearly 30% of businesses are victims of payroll misconduct, with small businesses twice as likely to be affected than large businesses. Here are four payroll fraud schemes that every business should be aware of.
How to Understand and Manage Your Cash Flow
June 2019
You certainly know that profit and cash flow are both important elements of a healthy business. But what’s the difference? And what can you do to achieve positive cash flow?
Don’t Forget Your Mid-Year Payroll Withholdings Check-Up
June 2019
You probably know that many taxpayers were surprised with either reduced refunds or higher taxes due when they filed their 2018 taxes. Why did this happen? Because their 2018 income tax withholding was not sufficient throughout the year.
5 Mid-Year Accounting Clean Up Projects
June 2019
It’s vital to get your accounting cleaned up before the year-end activities kick in and this is the perfect time of year to do it. Below are a few accounting projects you may want to consider taking on over the next few months. In the end it will set you up for success come December.
Are There Tax Implications for My Major Life Decisions? Yes!
June 2019
Major life changes are an exciting and emotional time. But with the positive changes, there can sometimes be challenges too. If you’re facing a change in your life in the near future, have you thought about what the tax implications might be?
What Story are Your Financial Statements Telling?
April 2019
The accounting policies you adopt create the internal reporting standard that’s reflected in the financial statements of your business – all of which impact how you benchmark and communicate success. What story are you communicating to the outside world? How can you report the story in a way that is easy to understand but still communicates who you are, what you do and how you are achieving success?
Tips on Raising a Financially Savvy Child
April 2019
If you have children (or grandchildren) you have an opportunity to give them a jump-start on their journey to becoming financially responsible adults. While teaching your child about money and finances is easier when you start early, it’s never too late to impart your wisdom.
5 Methods to Achieve Better Cash Management
April 2019
Every business, no matter its size, needs to have enough cash to pay the bills. Focusing solely on sales and profits could create issues when invoices arrive and you find that there aren’t enough funds available to pay them. Below are five ways you can be proactive and improve cash management for your business:
How to Protect Yourself from Tax Scams
March 2019
Identity theft is a real threat, but it is often downplayed because not everyone has witnessed or experienced it firsthand. Having a false sense of security can leave you exposed, especially during tax season. Here are some tips to keep your identity safe from scammers:
5 Benefits of Moving to the Cloud
March 2019
Small business owners are constantly looking for ways to save money and streamline processes in order to stay competitive. Using a cloud-based accounting software, such as QuickBooks Online, is one way to save time and money.
The Wayfair Case’s Impact on State Income Tax
February 2019
You have likely heard that the Supreme Court’s decision in South Dakota v. Wayfair, Inc. has resulted in businesses being required to collect and remit sales tax to certain states in which they have no physical presence. Have you wondered how this change affects your requirements for income tax filing?
Business Tax Developments Affecting 2018 Tax Filings
February 2019
Although it’s already tax filing season, it seems as if tax law changes are still being ironed out. Even with the IRS shutdown, there were funds made available to the IRS agencies tasked with implementing tax reform. As a result, we are seeing new developments on an almost daily basis. Here are a few highlights we would like to share as we begin to file 2018 business tax returns.
How Your Accountant Provides Value to Your Financial Reporting Cycle
February 2019
Financial literacy in today’s economic climate is more than just receiving reconciled accounts in periodic financial statements from your accounting firm. It is the ability to know where you are today, where you are going, and the plan to achieve it.
How To Make Your Audit More Efficient (And Less Painful)
February 2019
If you dread your annual audit, or are nervous about your first-ever audit, we have some suggestions that can help reduce the pain.
Don’t Discount the Value of Your Staffing Business: Avoid These Common Mistakes
February 2019
Be aware of common pitfalls that could negatively affect your company’s selling price and make a plan to address them.