Accounting Archives - Killingsworth Spencer, LLC

Your Exit Plan Is Already Taking Shape Whether You Know it or Not

admin2026-09-09T14:53:26+00:00

Hello again, Gus Martinez, CPA and Tax Manager here at Killingsworth Spencer in Roswell, GA. My previous blog post discussed what business owners should consider before exiting their business. This time I want to focus on an important reality: Much of the financial outcome of an eventual exit is determined years before the transition occurs. Many owners postpone planning thinking, “I am not ready to sell, or I am not ready to hand the company over, so there is no need to address it yet. I am too busy now anyway.” However, many of the variables that determine the eventual outcome [...]

Your Exit Plan Is Already Taking Shape Whether You Know it or Notadmin2026-09-09T14:53:26+00:00

What To Know Before You Exit Your Business

admin2026-08-27T21:41:08+00:00

Nearly every business owner eventually receives an unsolicited call from someone claiming to have the perfect buyer for their company. Many of these calls are phishing expeditions designed to gauge interest in selling. Some solicitations are legitimate. Regardless, most business owners are caught off guard. After spending years building a company, many owners have not yet considered what they want their eventual exit to look like – or what the financial consequences of each option might be. I am Gus Martinez, a CPA and tax manager with Killingsworth Spencer in Roswell, GA. Our CPAs advise owners of small to mid-sized closely [...]

What To Know Before You Exit Your Businessadmin2026-08-27T21:41:08+00:00

“Why Did I Not Get the Full $40,000 SALT Deduction?”

kwscpa2026-06-30T15:35:38+00:00

When the One Big Beautiful Bill Act was signed into law on July 4th, 2025, one of its most talked about tax provisions was the increase in the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. Greetings from Killingsworth Spencer, Lynn Spencer here. As 2025 progressed, some taxpayers adjusted their withholding and estimated tax payments on the expectation they would be entitled to the full $40,000 deduction. However, when tax season arrived, many discovered that qualifying for the full amount was not as straightforward. Income-based phase-outs reduce the allowable deduction for many higher income households, leaving tax balances [...]

“Why Did I Not Get the Full $40,000 SALT Deduction?”kwscpa2026-06-30T15:35:38+00:00

The Augusta Rule: How Homeowners Can Earn Tax-Free Rental Income for the 2026 FIFA® Games

kwscpa2026-06-03T22:38:45+00:00

Major events can create unique opportunities for homeowners. Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help generate tax-free income. A homeowner may rent their primary residence for up to 14 days each year without paying federal income taxes on the earnings. Rent it out for 15 days or longer and every dollar earned is taxable from the first day forward. Atlanta is a host city for the 2026 FIFA® World Cup. This could be a wonderful opportunity for a homeowner to rent to a business or an individual, for tax-free income. In fact, this is [...]

The Augusta Rule: How Homeowners Can Earn Tax-Free Rental Income for the 2026 FIFA® Gameskwscpa2026-06-03T22:38:45+00:00

IRS Announces a One-Time Settlement Offer for Conservation Easements

kwscpa2026-05-28T15:09:04+00:00

The IRS recently announced a time-limited settlement initiative offering eligible taxpayers involved in syndicated conservation easement disputes an opportunity to resolve pending matters on streamlined terms and avoid continued litigation. With more than 1,000 conservation easement cases reportedly pending in the U.S. Tax Court—and a significant number tied to Georgia-based entities, properties, or promoters—this initiative may be particularly relevant to Georgia taxpayers and advisors. Taxpayers considering participation should carefully review the eligibility requirements and deadlines outlined in the attached IRS announcement and consult with their tax advisors regarding the potential implications of the program. Killingsworth Spencer can also refer taxpayers to experienced tax counsel [...]

IRS Announces a One-Time Settlement Offer for Conservation Easementskwscpa2026-05-28T15:09:04+00:00

Important IRS Penalty Abatement for Taxpayers affected by COVID expires July 10th, 2026

kwscpa2026-05-27T16:56:10+00:00

Important IRS Penalty/Interest Refund Opportunity – Action Required Before July 10, 2026 A federal tax case, Kwong v. United States, is drawing national attention because it could allow tens of millions of taxpayers to recover IRS penalties and interest assessed during the COVID-19 pandemic. The court ruled that pandemic-related filing and payment deadlines may have been automatically extended from January 20, 2020 through July 10, 2023 under Internal Revenue Code Section 7508A(d), potentially impacting both individuals and businesses. If the ruling is ultimately upheld, taxpayers may be entitled to refunds or abatements for: • Failure-to-file penalties • Failure-to-pay penalties • Underpayment [...]

Important IRS Penalty Abatement for Taxpayers affected by COVID expires July 10th, 2026kwscpa2026-05-27T16:56:10+00:00

Medicare Surtax & NIIT Rules for North Atlanta Taxpayers

kwscpa2026-05-22T19:01:54+00:00

The .9% Medicare Surtax - has applied since 2013 under the Affordable Care Act (ACA) - The income thresholds below are the same in 2026 as they were in 2013. While income thresholds have not changed, more households are now affected. Employees pay the standard 1.45% Medicare tax on wages, matched by employers with no income limit. The Medicare Surtax is an additional 0.9% tax on all earned income, including wages, compensation, self-employment income, and Railroad Retirement Compensation when Modified Adjusted Gross Income (MAGI) exceeds thresholds: Married filing separately – $125,000 MFJ – $250,000 Single/Head of Household – $200,000 Example: a [...]

Medicare Surtax & NIIT Rules for North Atlanta Taxpayerskwscpa2026-05-22T19:01:54+00:00

When A Roth IRA Conversions May Cost More than it Saves

kwscpa2026-05-18T17:19:37+00:00

Roth IRA conversions may be less beneficial under OBBBA, and careful planning is essential before converting previously untaxed retirement funds. Below are several common Roth IRA conversion tax traps that can cost taxpayers more than they save: If a taxpayer needs to access the converted Roth-IRA funds within 5 years from a previously untaxed retirement account, such as a 401(k), 403(b), IRA, etc., penalties and taxes may apply. Taxpayers considering a Roth conversion should ideally have non-retirement funds available to pay the related income taxes. Using retirement assets to pay the taxes reduces the amount that can continue to grow tax-free [...]

When A Roth IRA Conversions May Cost More than it Saveskwscpa2026-05-18T17:19:37+00:00

New Tax Rules for Inherited IRAs What Beneficiaries Should Know about RMDs and the 10-year Rule

kwscpa2026-05-05T16:15:14+00:00

As of December 31, 2025, most non-spouse beneficiaries inheriting an IRA account from an individual who died in 2020 or later must fully distribute the account by the end of the tenth year following the original owner’s death. This rule applies to both traditional and Roth IRAs. However, Roth IRA withdrawals are generally tax-free provided the account has been open for at least five years. If the original owner had already begun taking required minimum distributions (RMDs) before death, beneficiaries must take distributions in years 1-9 and fully withdraw the remaining balance in year 10. If the original owner died before [...]

New Tax Rules for Inherited IRAs What Beneficiaries Should Know about RMDs and the 10-year Rulekwscpa2026-05-05T16:15:14+00:00

IRS Postmark Risks: Why Atlanta Taxpayers Should Plan Ahead

kwscpa2026-04-09T15:22:44+00:00

For decades, taxpayers relied on the simple rule that mailing a tax return or payment by the deadline meant it was considered timely filed. Recent changes in U.S. Postal Service (USPS) practices, however, have created potential risks for those relying on last-minute mailing. Missed postmarks can result in late filings, penalties, and unnecessary stress. Understanding the rules and options available can help taxpayers in Atlanta avoid costly mistakes. USPS Postmarks Are No Longer Guaranteed The USPS now often applies postmarks at regional processing centers instead of the local post office. These centers can be miles away from the mailing location, and [...]

IRS Postmark Risks: Why Atlanta Taxpayers Should Plan Aheadkwscpa2026-04-09T15:22:44+00:00