Accounting Archives - Killingsworth Spencer, LLC

What is YOUR Exit strategy from your business?

kwscpa2023-09-18T15:44:48+00:00

Most business owners do not realize they own either a high-paying JOB, a lifestyle business, or one that is run so well, that it can sell for a premium in the marketplace. Can you vacation for a couple of weeks and leave your cell phone at home? When you come back to the office will it be the same or better than when you left? If the answer is NO, then you have a high-paying job. A lifestyle business is where you are making the money you need to pay your bills, enjoy nice vacations, and own some toys. A business [...]

What is YOUR Exit strategy from your business?kwscpa2023-09-18T15:44:48+00:00

Is a Roth IRA better than a traditional IRA or 401(k)?

kwscpa2023-09-12T17:23:16+00:00

Have you ever heard of the expression, “Would you rather pay taxes on your seeds or your crops?” Let’s put it another way, would you rather pay taxes at the beginning of your retirement plan investment or the end of a twenty-to-forty-year investment cycle? My name is Rebekah Littleton, MAcc a Senior Staff Accountant at Killingsworth Spencer CPAs. In this article, I want to point out the key differences between a Roth IRA account and a traditional IRA, or 401(k) retirement plan. In a Roth plan, there is no tax savings with your contribution; however, gains within the account are not [...]

Is a Roth IRA better than a traditional IRA or 401(k)?kwscpa2023-09-12T17:23:16+00:00

Loans to and from your business

kwscpa2023-08-30T13:49:14+00:00

Due to our current economic climate, clients are asking our advice about the taxable consequences and best practices to borrow funds from their own companies. Shareholder loans “from” a corporation Loans “from” your business may not be the best way to distribute money to avoid paying income taxes. The IRS has placed strict rules on this practice, in that the loan could be taxed as a capital gain to you personally. Judy Bernhard, CPA here, and I am the Resident Tax Manager with Killingsworth Spencer CPAs. The items to have in place in taking a shareholder loan include a loan document [...]

Loans to and from your businesskwscpa2023-08-30T13:49:14+00:00

You MUST prepare for the unexpected!

kwscpa2023-08-23T14:56:24+00:00

YES! This can be a difficult subject to discuss with your business partner(s) and/or your spouse. It is critical for you to learn from each other as to wishes and next steps when it comes to disposition of legacy assets at death. This is NOT something you want to be guessing at or doing hastily at the end of a loved one’s life. When is the last time you reviewed your: Buy/Sell agreements – Wills/Trust agreements Business documents IRA/Retirement plans – including beneficiary designations Life insurance policies – including beneficiary designations Computer/Cell phone/Banking passwords/Tax records Power of Attorney/Health care directives If [...]

You MUST prepare for the unexpected!kwscpa2023-08-23T14:56:24+00:00

Credit Shelter Trusts

kwscpa2022-08-16T01:16:25+00:00

Janet & Dan just prepared a Credit Shelter Trust Tax Return for the surviving spouse, Stella, of our deceased client, John (her husband). This Credit Shelter Trust was created through John’s estate plan via his will. Lynn Spencer here from Killingsworth Spencer CPAs with another important tax tip. A Credit Shelter Trust is sometimes referred to as a By-Pass Trust because it is set aside to make use of the estate tax exemption available to a decedent and bypasses being included in the estate of the surviving spouse. The surviving spouse and/or others can receive income from the assets in the [...]

Credit Shelter Trustskwscpa2022-08-16T01:16:25+00:00

Welcome Rebekah Littleton, MAcc

kwscpa2022-08-02T13:02:10+00:00

I began my working career in retail and eventually found myself as a cake decorator for roughly 5 years. Finally, with the support of a very close friend, I decided to go to college. This helped fulfill a dream I never thought was possible. I graduated from the University of Washington with a Bachelors in Business Administration with an emphasis in accounting in 2018. Shortly after, in 2020, I graduated with a Masters of Accountancy. I have worked in public accounting since 2019, during which I worked with a variety of business owners; doctors, contractors, retailers, manufacturers, veterinarians, and real [...]

Welcome Rebekah Littleton, MAcckwscpa2022-08-02T13:02:10+00:00

100% Bonus Depreciation Expiring Soon

kwscpa2022-07-22T18:47:38+00:00

Lynn Spencer here again with Killingsworth Spencer CPAs and another important tax tip. The 100% bonus depreciation deduction goes away on December 31, 2022. Business owner’s looking to buy a large new vehicle, for example, have likely heard there is a big tax write-off for purchasing a vehicle over 6000 pounds. Buying a large vehicle in 2022 will “fuel” a large tax deduction, but there are some caveats. The vehicle must be used for more than 50% business. This is a one-time huge deduction, but with cautions in future years. Once this method is used, the business owner cannot use mileage [...]

100% Bonus Depreciation Expiring Soonkwscpa2022-07-22T18:47:38+00:00

IRS has updated the business mileage deduction for 2022

kwscpa2022-07-11T15:22:31+00:00

In recognition of recent gasoline price increases, the IRS made a special declaration (IRS Announcement 2022-13): For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate at the beginning of the year. For business vehicles, using mileage at the IRS rate is an option in lieu of tracking actual costs like payments, gasoline, depreciation, and maintenance. Killingsworth Spencer’s CPAs work these numbers with each client each year and generally see mileage as the better and easier-to-track deduction, but we may see a swing to actual [...]

IRS has updated the business mileage deduction for 2022kwscpa2022-07-11T15:22:31+00:00

Moving Expenses post TCJA

kwscpa2022-05-04T14:17:08+00:00

“We’re hiring” signs are everywhere in Georgia. Georgia’s unemployment #s are very low, and there are twice as many jobs than there are seekers. One way to fill an open job is to hire from out of state. Who pays for the move? Employees are no longer allowed to deduct job-related moving expenses, (unless they are military). Employers will likely pay for the move, but there is a risk that the new hire doesn’t stay long enough to recoup the expenses. One way to mitigate is to have the new hire sign an agreement to pay the employer back for all [...]

Moving Expenses post TCJAkwscpa2022-05-04T14:17:08+00:00

Beware the Ides of March

kwscpa2022-03-12T18:29:09+00:00

There is a little background as to how the Ides (around the middle) of March ties directly into why we pay our taxes on March 15th and April 15th each year in the United States. In Caesar’s day, the Ides of March was the date on the calendar when ALL tax debts with the emperor and the state must be settled. When the income tax was enacted by Congress in 1912, the first due date for all tax settlements was March 1st, 1913. It was changed to the Ides of March in 1918 for both personal and corporate income taxes and [...]

Beware the Ides of Marchkwscpa2022-03-12T18:29:09+00:00