In an effort to assist the restaurant industry, the Consolidated Appropriations Act of 2021 introduced a 100% business meal deduction. The new provision creates a temporary but meaningful tax incentive to spend more in restaurants. This means that business owners can write off meals and entertainment at full cost (formerly 50%) for the years 2021 and 2022.
Author: Melissa Lomeli
Cryptocurrency CPA Firm – What is Cryptocurrency?
There’s a type of currency that businesses never physically touch. It’s virtual but spendable. It’s made of digital 1s and 0s instead of copper or paper. It’s cryptocurrency, and it’s growing in popularity. This increasing popularity means that if cryptocurrency isn’t part of your investment plans today, it very well may be in the future. Without knowing what it is and how it works, it is extremely difficult to make the correct decisions when investing in or utilizing cryptocurrency. As a Cryptocurrency CPA firm, we can assist in answering some of the more difficult questions that continue to come up for investors and business owners.
Using A 529 Plan For More Than Just Education
When someone thinks of the 529 education savings plan, they usually think of a convenient way to invest and save for college and schooling costs tax-free. They do this, but accountants and financial experts say they are also useful estate-planning tools that have uses well beyond education costs.
SOC Bridge Letter – Does Your Organization Need One?
A SOC bridge letter is an important document made available by a service organization to cover a period of time between the reporting period end date of the current SOC report and the release of a new report.
Child Care Tax Credit Expanded for 2021
Great news, the Child Care Tax Credit has been expanded for 2021! As part of President Biden’s American Rescue Plan Act (ARPA) signed into law on March 11, 2021, the child and dependent care tax credit has been substantially increased. Here are the details:
Lowering Your Bitcoin Taxes
The price of Bitcoin is hitting all-time highs as more and more people flock to invest in it. Lots of investors are having massive gains and need to consider the hardest question about their investment: do I hold, buy, or sell now?
If you choose one of the former two options, you do not have to worry about bitcoin taxes yet. However, if you choose to sell, you will have the IRS looking at you since the sale is a taxable event. The good news is that you can lower your taxes by creating a strategy in advance. While you will have to pay taxes on selling your investment, you can lower your taxes by planning in advance. Here are some strategic options to let you keep more of those Bitcoin gains.
How Biden’s Rescue Plan Might Impact Your Taxes
President Biden released his “American Rescue Plan” on January 14. It is a wish list of proposals he wants Congress to enact to address the COVID-19 pandemic and associated economic crisis. While some of the proposals are intended to be in effect for just one year, it isn’t too great a stretch of the imagination that these could later be extended or made permanent, as many of them have been on the Democrats’ agenda for some time. The anticipated cost of the American Rescue Plan, if all of the proposals are agreed to by Congress, is $1.9 trillion. None of Biden’s proposals are revenue raisers, and according to a January 15, 2021 Wall Street Journal report, he intends to use government borrowing to pay for his plan. Following are some of the tax-related proposals.
Year-End Tax Planning Strategies
Annual year-end tax planning strategies will reflect the COVID-19 pandemic and its effects. This year’s economic impact and federal relief packages will render some year-end tax planning strategies less advisable. In addition, this presidential election could result in new federal tax legislation that could affect the current Tax Cuts and Jobs Act. Below are a few year-end tax planning issues to consider.
SOC 2 Type 1 or Type 2: Which Should You Choose?
Which SOC 2 Report is Right for Your Business?
The time has come for your service organization to get SOC certified. Whether a client requested one, or if you have made this decision for your business, it’s important to know if you should get a SOC 2 Type 1 or Type 2 report.
SOC 1 Type 1 or Type 2: Which is Right for You?
Which SOC 1 Report is Best for Your Business?
So, you have either been asked to get a SOC 1 Audit by a client, or your service organization could benefit from being certified. However, then the next question is, what report should you get? A SOC 1 Type 1 or Type 2 report can be used for a variety of industries. Knowing the differences between the two are vital.