New Corporate Transparency Act January 2024

2023-10-20T12:01:43+00:00

On January 1st, 2021, Congress passed the Corporate Transparency Act (CTA) to help put an end to tax evasion by those who use a maze of small companies in numerous states to make it difficult to discover the beneficial owner(s). A beneficial owner is defined as an individual who exercises substantial control over the entity or owns 25% or more of the entity. The last time American citizens saw this level of financial reform was in 2001 after the September 11th terrorist attacks. What happens on January 1, 2024? Lynn Spencer here with Killingsworth Spencer CPAs. Beginning January 1, 2024, the [...]

New Corporate Transparency Act January 20242023-10-20T12:01:43+00:00

Accounting & CPA firms are in crisis mode

2023-10-15T23:53:48+00:00

Before the Covid 19 Pandemic began in March 2020, the accounting and tax/CPA industry was facing a staffing shortage; too many CPAs were approaching retirement, and accounting students were diminishing. Accounting graduates preparing to sit for the grueling CPA exam were waning too. Post-pandemic, the number of CPAs and accounting professionals retiring or passing away has surpassed projections. To exacerbate the state of affairs, new tax laws continue to become more complex, increasing the demand for experienced CPAs and tax professionals. This is especially worrisome to anyone who owns a business. Not only does the industry feel the shortage, but the [...]

Accounting & CPA firms are in crisis mode2023-10-15T23:53:48+00:00

What is YOUR Exit strategy from your business?

2023-09-18T15:44:48+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?2023-09-18T15:44:48+00:00

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

2023-09-12T17:23:16+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)?2023-09-12T17:23:16+00:00

Loans to and from your business

2023-08-30T13:49:14+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 business2023-08-30T13:49:14+00:00

Take hold of the 4th quarter now and make the year all come together before it’s too late

2022-10-04T18:05:38+00:00

Business owners are pulled in many different directions each day. The business must be nurtured for it to grow and remain strong and healthy. Successful business owners also realize they cannot take this journey alone. They must surround themselves with a great team where everyone is aligned for success. One of the greatest challenges business owners must face is to have access to critical financial information in real time to make good decisions. This information comes from having a talented team of advisors who work in concert to help the owner gain access to knowledge. Killingsworth Spencer CPAs sees its role [...]

Take hold of the 4th quarter now and make the year all come together before it’s too late2022-10-04T18:05:38+00:00

Work Opportunity Tax Credit

2022-09-28T16:46:50+00:00

Recently, the IRS released updated information on the Work Opportunity Tax Credit. This federal tax credit is equal to 40% of up to $6,000 in wages paid, or a maximum of $2,400 to targeted groups of individuals who have faced significant barriers to employment. The Tax Credit includes ten categories of workers to hire: Qualified Needy Families Certain Veterans Ex-felons Designated Community Residents Vocational rehabilitation referrals Summer youth employment Food stamp recipients Supplemental Security Income recipients Long-term family assistance recipients, & Qualified unemployment recipients Most employers have had a difficult time hiring employees in this Covid economy. Killingsworth Spencer CPAs can [...]

Work Opportunity Tax Credit2022-09-28T16:46:50+00:00

Credit Shelter Trusts

2022-08-16T01:16:25+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 Trusts2022-08-16T01:16:25+00:00

Business Travel

2022-07-28T12:47:20+00:00

Business travel is becoming more costly than in years past, but the related deductions can offset the expense. These are available when employees or the owner must travel away from their tax home or main place of work for business reasons. The travel period must be substantially longer than an ordinary day’s work with a need for sleep or rest to meet the demands of work while away. The expenses must be ordinary and necessary, not lavish or for personal purposes. These deductions include the cost of travel via an airplane, train, bus, or car, taxi and Uber; shipping of baggage [...]

Business Travel2022-07-28T12:47:20+00:00

100% Bonus Depreciation Expiring Soon

2022-07-22T18:47:38+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 Soon2022-07-22T18:47:38+00:00
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