Back in 2020, the Consolidated Appropriations Act (CAA) was signed in an effort to support restaurants impacted by the COVID-19 pandemic, and it allowed companies to deduct 100% of business expenses. However, the CAA ended on January 1, 2023, and now meal and entertainment deductions have reverted to the limits enacted under the Tax Cuts and Jobs Act (TCJA). For tax year 2023, a large percentage of business meal deductions will be 50% deductible, but entertainment deductions remain non-deducible under TCJA.
Looking Ahead to 2023 Taxes
With the holiday celebrations coming to an end, now is the time to take a look at the changes that will impact your 2023 taxes when you file them in 2024.
Year-End Tax Planning Services in Dallas
As we enter the last quarter of 2022, year-end tax planning services in Dallas are a top priority. There are steps you need to take for year-end tax planning before December 31st in order to take advantage of any tax breaks for which you may qualify. The amount of taxes you or your business will need to pay in April directly corresponds to the financial decisions you make now. If you wait too long to get started on your 2022 taxes, it will be too late to make any changes.
Does Coinbase Report to the IRS?
Does Coinbase report to the IRS? This has become a popular question recently, and the IRS has made it clear that cryptocurrency tax enforcement is a high priority. We’ll break down the key points you need to know about Coinbase tax reporting, as well as explain the different types of forms that Coinbase sends to customers and what they mean for you.
Tax and Accounting Professionals in the Modern Era
Starting a few years ago with the onset of the still ongoing COVID-19 pandemic, the role of tax and accounting professionals in the context of a small business began to change. It’s truly become a role that acts as a sounding board for solid decision-making, as is true with that of the virtual CFO.
Special Tax Benefit for Inheritances
You may have heard the term “Stepped-Up Basis”, that many believe is a tax provision that allows beneficiaries of an inheritance to reduce or even avoid taxes when and if they sell inherited property.
If an individual sells property, any gain from the sale of that property is taxable. The tax term “basis” is the value from which any taxable gain is measured. In regard to personal use or investment property, the basis is generally the cost of the property. For business property the term basis is replaced with adjusted basis, which usually means the cost of the property reduced by business deductions attributable to the property.
Proposed IRS Budget Increase May Increase Audit Rates
The Congressional Budget Office proposed a substantial budget increase for the IRS in late 2021 that could increase their budget by up to $80 billion in the next ten years. The reason for this request is that increasing the budget of the organization could increase the overall revenue by $200 billion over the same period.
American Families Plan Tax Changes
President Biden’s American Families Plan tax changes has a substantial impact on high-income taxpayers. What are the odds that the bill will be passed into law? Since the Senate is evenly divided at 50/50 for each party the Democrats will need all 50 votes from their side and the support of the vice president to pass the bill through budget reconciliation.
What impact will the American Families Plan have on tax rates?
New Lease Rules For GAAP Financial Statements
The new leasing standard (ASC 842) will impact all GAAP financial statements next year. This new standard will affect every company issuing GAAP financials that has any type of lease agreement (office lease, copy machine, auto lease, etc.). Under the new standard, all leases, regardless of being capital or operating leases, must be reported on the balance sheet as an asset with a related lease liability. Complying with this standard will be a tedious task and will also impact income tax liability.
SOC Compliance – Small Business Questions
There are a few areas of confusion when it comes to small business SOC compliance. Many smaller organizations still have sufficient internal controls, and the documentation and questions required by SOC compliance can still be provided and answered. However, the size of the organization can be very impactful in two areas especially.