Killingsworth Spencer CPAs 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

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

kwscpa2022-10-04T18:05:38+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 latekwscpa2022-10-04T18:05:38+00:00

Work Opportunity Tax Credit

kwscpa2022-09-28T16:46:50+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 Creditkwscpa2022-09-28T16:46:50+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

Business Travel

kwscpa2022-07-28T12:47:20+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 Travelkwscpa2022-07-28T12:47:20+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