Small Business Financials

It’s the season of giving, and you’ve decided to put your money to good use by donating to a good cause. The best part? Your charitable donation could be tax-deductible! Thanks to the extension and expansion of 2020’s Coronavirus Aid, Relief, and Economic Security Act (CARES Act), even more taxpayers are eligible to take advantage of the deduction this year. What is the charitable contribution tax deduction? Before the pandemic, this tax break was typically only available for those who itemized their tax deductions. The CARES Act changed that in 2020, allowing those who took the standard deduction to write off their charitable contributions as well. What qualifies as a charitable contribution deduction? Cash donations made in 2021 to most public charitable organizations qualify for this deduction, although the IRS does note a few exceptions . If you are planning to do some charitable giving this year and would like to receive a deduction on your income tax, just make sure you’r...

This year, you may want to give back during the holiday season. While you can always donate money to charities year-round, this holiday season you might try donating your stocks instead. By doing your research on donating your stocks to a charity, you can potentially reduce your bill come tax time. The benefits of donating stocks   If you want to give generously to a charity but don’t have the funds to do so in your bank account, donating stocks is a great option for you. For many of us, the value of stocks you own is higher than the amount of cash you can comfortably afford to donate, Because of this, donating stock to charity allows you to contribute to your favorite cause without breaking the bank — and feel great about giving back at the same time! In addition, when donating appreciated stock to a 501(c)(3) organization, you can avoid having to pay the capital gains tax on your tax return. This would apply if your stocks have gone up in value from the time you purchased ...

With the holidays just around the corner and the end of 2021 approaching fast, you might be wondering: should I sell my stocks before the end of the year? Maybe you’re looking for a little extra cash to help cover all the money you spent on holiday gifts, or perhaps you simply want to give yourself the gift of a potential tax deduction next year. Whatever the reason, you’re wondering how selling investments might affect your taxes. Don’t panic! We’ve compiled some useful information to help you decide what course of action to take. Paying taxes on your capital gains If you sell your investments for more than they’re worth because they’ve appreciated in the time you’ve owned them, you’ll report what’s called a capital gain. You can make capital gains from investments like stocks, bonds, and real estate. The amount of tax you are going to pay for capital gains depends upon whether you had a short-term or long-term capital gain. Short-term gains are for less than one year, and long...

Now that the holidays are rapidly approaching, many of us are brainstorming what gifts to give our loved ones. Instead of doling out the typical gift cards or buying them a present they might never use, maybe you’re thinking of giving them money or property instead. When it comes to unconventional holiday gifting like this, many of us start to wonder how our taxes might be affected. If you gift differently this year, will you be hit with a gift tax when you file your 2021 tax return? Thankfully, many people won’t have to worry about that. For your peace of mind, we’ve compiled some information you should know about the 2021 gift tax limit so you can decide if it’s worth it to gift a certain amount to your loved ones. What is the gift tax? The gift tax is a federal tax you must pay if you give someone a gift above a certain amount. The gift tax applies to assets or property, such as a home. The recipient of the gift does not pay the gift tax. The government created this tax so t...

While the end of the year is a time to relax and make precious memories with loved ones, it’s also when you finally have a few days off from work. And with that time away from the workplace, you may want to clean out your house and figure out what you can donate to charity to start the new year off right. Getting rid of items you don’t use and gifting them to a charitable organization is a win-win all around. But how should you go about it, and what donations are tax-deductible? We’re here to help you understand how charitable contributions and deductions work when it comes to your tax return. What charities qualify for a tax deduction? First, you’ll need to make sure that your donations are going to a tax-exempt organization. You can find out if your charity qualifies by running a Tax Exempt Organization Search on the IRS’s website and searching by name or employer identification number. If you’re donating clothing or other household goods, for example, places like Goodwill and ...

Once your last-minute holiday shopping is finally over and all your gifts are accounted for, there’s still one person we often tend to overlook: ourselves. If you have some extra cash left over and are looking for ways to spend it mindfully before the new year, why not consider investing in an IRA? Not only would you be doing your future self a favor, but you might even be able to gift yourself a tax break next year in the process! What is an IRA? IRA stands for Individual Retirement Account. By opening and contributing to an IRA, you are funding an investment account with the purpose of building yourself a nest egg for retirement. IRAs are typically the main source of retirement savings for people who are self-employed or those who don’t otherwise have a work retirement plan such as a 401(k). However, even if you do have a 401(k) plan through work, an IRA may still be a helpful retirement savings option for you! The great thing about IRAs is the account is in your name — it’s no...

Small business owners, it’s time to expand your holiday shopping list. You’re not restricted to just buying gifts for your loved ones this year — it’s likely your business could benefit from some end-of-year purchases as well! Timing is everything when it comes to making purchases for your small business and saving on business taxes. But how do you discern necessary spending from frivolous spending? When is it better to purchase now versus later? Are there other ways to save on taxes for small businesses? We’re here to help answer all your questions. What can I purchase for a small business tax deduction? There are a variety of business purchases you can deduct on your tax return. This includes expenditures such as travel and vehicle expenses, cost of goods sold, employee wages, necessary supplies, and business insurance, just to name a few. For more detailed information on common small business tax deductions, check out our ultimate list . Another deduction to keep in mind is th...

Holiday shopping for young children can be tricky — especially when you’re shopping for newborns or toddlers who seem to outgrow everything so quickly! If you’re looking for a unique gift that will benefit a child (and their parents) for many years to come, you might consider investing in their future by gifting them a 529 education savings plan. What is a 529 plan? This plan gets its name from section 529 of the federal tax code. Also called qualified tuition programs, 529 plans are an easy, tax-free way to invest in a child’s future education expenses. Each 529 investment account has a designated beneficiary (the child), and the funds can be used to pre-pay their tuition expenses or save for their future higher education expenses. When it comes to 529 plans for children, the earlier you open one the better. For instance, if you are gifting a 529 account to a newborn, that money would have 18 years to grow before the child goes to college. But you can certainly give the gift of ...

Audio is not supported in your browser Types of funds * This article was originally published here Check out https://www.johannakimball.com

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Teachers, this one is for you. You give so much of your time, money, and energy to ensure your students have everything they need to succeed. Even so, we know you aren’t reimbursed for all the money you spend on necessary teaching materials or professional development courses for yourself. Thankfully, the Educator Expense Deduction has your back when it comes to lowering your taxable income. If you haven’t maximized your qualified teaching expenses for 2021 yet, now is the time to do so! As the holidays approach, you can give your students the gift of a fully stocked classroom ready to meet their needs while also giving yourself the gift of a tax write off next year. What is the Educator Expense Deduction? The IRS allows eligible educators to deduct up to $250 of qualified teaching expenses every year, as long as you were not reimbursed for these expenses by your school, a grant, or by some other means. If you are married, filing jointly, and both you and your spouse qualify as e...

There are so many different ways you can give back during the holiday and contribute to the betterment of the world. You don’t just have to make a cash donation to charity, especially if you’d rather donate items or your time to an organization instead. Here are some ideas for giving back this season so that you can ensure everybody has an enjoyable holiday. 1. Run a race There are races during the season you can partake in that allow you to raise money for charity. You may be able to dress up like an elf or Santa Claus to make the race even more fun. 2. Volunteer at a local food bank You can volunteer at a food bank in your neighborhood that’s local to your community or see if you have a Feeding America food bank near you. 3. Donate your canned goods Do you have canned goods in your pantry that you aren’t going to use? Or do you have time to go to the store to pick up some canned goods? Look around for charities that are accepting canned goods so that nobody goes hungry this...

The holiday season is a time not only when we purchase gifts for our loved ones, but we also think about the best ways we can give back to the world. After all, it’s important to remember to offer a helping hand during the holidays – and beyond. If you’re thinking about buying items to donate to charity, here’s how to go about it so it’ll provide tax benefits. Find a tax-exempt organization You’ll first want to first a tax-exempt organization to donate to. Otherwise, if you give to a charity without this tax status, you won’t be able to write it off. Navigate to the IRS’ website and use its Tax Exempt Organization Search Tool to find a charity of your choice. You can search by the organization’s name or the Employer Identification Number, the EIN. Additionally, if you already have a charity in mind, you can look on its website and see if it’s a 501(c)(3) nonprofit and then confirm it using the IRS’ tool. Some charities you may want to research include: Toys for Tots Make-a-W...

Holiday shopping for young children can be tricky — especially when you’re shopping for newborns or toddlers who seem to outgrow everything so quickly! If you’re looking for a unique gift that will benefit a child (and their parents) for many years to come, you might consider investing in their future by gifting them a 529 education savings plan. What is a 529 plan? This plan gets its name from section 529 of the federal tax code. Also called qualified tuition programs, 529 plans are an easy, tax-free way to invest in a child’s future education expenses. Each 529 investment account has a designated beneficiary (the child), and the funds can be used to pre-pay tuition expenses or save for future higher education expenses. When it comes to 529 plans for children, the earlier you open one the better. For instance, if you are gifting a 529 account to a newborn, that money would have 18 years to grow before the child goes to college. But you can certainly give the gift of a 529 plan a...

Audio is not supported in your browser How to gain an understanding of undocumented controls and processes * This article was originally published here Check out https://www.johannakimball.com

If you’ve been seeing more university flyers in your mailbox lately, it’s no coincidence. Many businesses ramp up their donation hunting efforts around the holidays — colleges and universities being no exception. Making a charitable contribution to a school is another great option for those looking for new ways to give back this holiday season. Whether you are a college alum, the parent of a child at university, or simply a generous local resident, schools count on your donations to provide quality education for their students. And you just might be able to claim a tax deduction in the process! Is my donation to a college tax-deductible? Yes, most charitable donations made to colleges and universities are tax-deductible. Many nonprofit schools typically qualify as tax-exempt organizations under the Internal Revenue Code (IRC). This means you can generally deduct charitable donations made to these institutions on your tax return. To be sure, you can always look up your preferred co...

SP-4-TY21-16-Holiday Gifting Campaign PDF The post Holiday Gift Guide appeared first on TaxAct Blog . from TaxAct Blog https://ift.tt/3CJ34qs via CFO Blog

Tax * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser Covers fraud schemes related to collusion, theft, and more * This article was originally published here Check out https://www.johannakimball.com

With 2021 soon coming to a close, confidence among CEOs of small to medium-sized businesses remains strong and Vistage outlined some of the things to expect from companies going into 2022.  * This article was originally published here Check out https://www.johannakimball.com

Tech pulse * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser The Financial Accounting Standards Board has overhauled the coding structure for GAAP * This article was originally published here Check out https://www.johannakimball.com

There are more than two types of aphorisms along these lines. Here are some of my faves.  There are only three types of accountants in the world....  ....Those who can count and those who can't. There are only 10 types of accountants in the world....  .... Those who understand binary and those who don't  There are only two types of accountants in the world.... . ...Those who walk into a room and say, ‘There you are!’ – and those who say, ‘Here I am!’ ” (original credited to Abigail Van Buren)  There are only two types of accountants in the world....  ....Those who can extrapolate from incomplete data Any more? * This article was originally published here Check out https://www.johannakimball.com

60 years ago fireworks were added to the list of goods chargeable with Purchase Tax. Hansard records an odd debate that took place on 12 February 1962 concerning the extent of the charge.  The new Purchase Tax order paper stated that the Tax (a precursor to VAT) was to be charged at 25% on fireworks of all kinds sold over the retail counter for 5th November celebrations and also those used in firework displays. Previously it was only charged on indoor fireworks which were considered to be "a variety of toy." The mind boggles! As a result of a question raised in the House, the Government had to make it clear that the tax would not apply to those fireworks that were made for either military or marine purposes.  Thus there was to be no purchase tax on signal rockets, on "Very lights", on bird scarers used by fruit farmers or on "other commercial articles of that kind".  Seems sensible of course. But tax is never simple.  There then followed a discussion which...

After many sleepless nights, months of planning, and years of hard work, you’re finally ready … it’s time to take the leap and start your small business! Now, we know tax payments are probably the last thing you want to think about right now but trust us — filing small business taxes for the first time doesn’t have to be a nightmare. The sooner you start thinking about how to file small business taxes, the more time and money you’ll be able to save. Ready to learn how to maximize those small business tax deductions? Let’s get started. Step 1: Choose your small business structure. One of the first decisions you need to make as a new small business owner is how you want to organize your business. Your legal business structure affects not only how your business operates, but also how you will pay your taxes. Typically, small businesses fall under one of the following categories when filing taxes with the IRS. Sole Proprietorship A sole proprietorship is the most common business c...

AccountingDepartment.com's team attended the 2021 Vistage ChairWorld in Las Vegas, NV, and had an excellent time getting to create new connections and catch up with clients and friends. ChairWorld is a place for Vistage Chairs to come together and attend various breakout sessions, networking opportunities, and evening fun to learn new strategies, improve on leadership skills, and more. * This article was originally published here Check out https://www.johannakimball.com

Growth * This article was originally published here Check out https://www.johannakimball.com

Clients * This article was originally published here Check out https://www.johannakimball.com

Audio is not supported in your browser The difficulty of electing directors under NYSE Rule 452 * This article was originally published here Check out https://www.johannakimball.com

Navigating the ins and outs of owning a business can be difficult, especially as a small business owner. With limited resources and funds at your disposal, determining the how to pay yourself as a small business owner is an essential step toward long-term success. But where should you start? To help you understand your options, we’ve broken down the basics for you below. Your choices: salary vs. owner’s draw First, let’s look at the two main ways small business owners typically pay themselves. We’ll dive into each method by explaining how each system works and the respective pros and cons to consider. Option 1: Salary method We’ll start with salary. This is the method you are probably the most familiar with. Paying yourself a salary from your business is comparable to how you would usually pay an employee. Essentially, you cut yourself a paycheck on a regular schedule, and the taxes you owe are automatically withheld. Here are the main points to consider if you choose to use t...