We’re all familiar with the age-old saying that only two things are certain in life: death and taxes. It’s safe to say that for most, discussing either topic isn’t exactly a delightful dinner conversation with your family. However, when these two inevitabilities in life intersect, the result can be financially…
Retirement planning is a crucial consideration for business owners seeking to secure their financial future. Among the various retirement plan options available, the cash balance plan has gained reputation as an innovative and advantageous solution. Tailored to meet the needs of business owners and key employees, cash balance plans offer…
What is an HSA? As Health Savings Accounts (HSA) become more popular, you may ask the question, “what is an HSA?” An HSA is a health account that is used for qualified medical expenses. Common examples of qualified medical expenses include dental care, glasses, prescription medication, insulin, and so forth.
During the Fall season, I encourage Ag producers to pause and take some time to get caught up with their yearly bookkeeping. They should also spend some time reflecting on the current year and think about their plans and opportunities for the upcoming year. Accurate, up-to-date bookwork is essential to…
With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. If you are thinking about selling your principal residence, you may be wondering about the tax implications. The good news is that tax laws allow you to exclude a home sale gain of up to $250,000…
Are you thinking about moving into a new home and renting out your current home? Here are some things to consider. Let’s start with the many nontax factors to consider when deciding whether to sell or rent out your current home. Do you need cash from the sale to fund…
Change can be good but change can be hard. Taking a step back and re-evaluating processes and efficiencies is important from time to time. Our firm has experienced this over the last year due to the lingering effects from the pandemic, staff changes, constant tax law changes, and ongoing technology…
How are sales of real estate such as land and buildings reported on your tax return? Is the net income (or loss) taxed as ordinary income or capital gain? The answer is that it “depends.” The determination is based on the facts and circumstances of the situation and the intention of the…
The Democrats now in charge of Washington are aiming for higher taxes for most high-income earners. Now that Covid relief has slowed down, CPAs are refocusing to a Democrat-controlled Presidency and Congress. We are being asked by our clients “How much will my taxes go up next year?” and “What…
Currently there are two educational tax credits allowed by the IRS, the American Opportunity Tax Credit (AOTC), and the Lifetime Learning Credit (LLC). The goal of this article is to define these two credits and discuss some of the common questions regarding their use. The AOTC is a credit for…
