Fall is a season for preparation — a time to review what you’ve built and make sure it’s safe for the future. Many assets are exposed to risks you may not realize. Learn how thoughtful wealth planning can help protect your retirement accounts, your home, and your legacy.
How to Boost Your SALT Deductions Under the New OBBBA Rules
One of the most overlooked tax strategies for entrepreneurs and early-stage investors is the Qualified Small Business Stock (QSBS) exclusion under IRC §1202. When structured properly, QSBS can allow up to a 100% exclusion of federal capital gains on the sale of stock—potentially saving millions in taxes.
Understanding the Assignment of Income Doctrine – With a Focus on the Anticipatory Assignment of Income
One of the most overlooked tax strategies for entrepreneurs and early-stage investors is the Qualified Small Business Stock (QSBS) exclusion under IRC §1202. When structured properly, QSBS can allow up to a 100% exclusion of federal capital gains on the sale of stock—potentially saving millions in taxes.
Roth IRA Conversion: “Are They Right for Me?” (Year-End Edition)
Fall is a season for preparation — a time to review what you’ve built and make sure it’s safe for the future. Many assets are exposed to risks you may not realize. Learn how thoughtful wealth planning can help protect your retirement accounts, your home, and your legacy.
New 1099 Filing Rules: What Businesses Need to Know
One of the most overlooked tax strategies for entrepreneurs and early-stage investors is the Qualified Small Business Stock (QSBS) exclusion under IRC §1202. When structured properly, QSBS can allow up to a 100% exclusion of federal capital gains on the sale of stock—potentially saving millions in taxes.
When Interest Rates Drop, Who Wins and Who Loses?
Interest rates play a big role in shaping financial opportunities, and when they move, the impact isn’t the same for everyone. A drop in rates can create winners and losers—sometimes in surprising ways.
How Long Should You Keep Your Tax Records?
How Long Should You
Keep Your Tax Records?
Attention tax filers! How long should you keep your tax records? While the standard rule of thumb is to retain tax documents for at least three years, it’s essential to know that the IRS can return to SIX years during an audit for underreported income or fraud.
Attention tax filers! How long should you keep your tax records? While the standard rule of thumb is to retain tax documents for at least three years, it’s essential to know that the IRS can return to SIX years during an audit for underreported income or fraud.
It’s crucial to keep your tax records safe and sound for at least six years to ensure compliance and stay on the IRS’s good side. Failure to maintain sufficient documentation could lead to complications in the event of an audit.
At Keystone CPAs, we understand the importance of record-keeping and its impact on tax obligations. By adhering to the six-year recommendation, you can mitigate risks and demonstrate transparency in your financial affairs.
Remember, when it comes to tax records, it’s better to be safe than sorry. Stay organized, keep track of your documents, and consult with tax professionals like Keystone CPAs to ensure you’re well-prepared for any potential IRS inquiries. And always remember, the six-year rule is not just a suggestion, it’s a crucial part of tax compliance.
For expert guidance on tax preparation, compliance, and record-keeping best practices, look no further than Keystone CPAs. We’re here to assist you every step of the way, ensuring you’re well-prepared for any potential IRS inquiries. Reach out to us today to learn more about how we can help you navigate the complexities of tax obligations and financial responsibilities.
#TaxTips #RecordKeeping #IRSCompliance
Maximize Your Business Tax Savings: Year-End Tips for 2024
Maximize Your Business Tax Savings
Year-End Tips for 2024
As we approach the end of the year, it’s crucial for businesses to take proactive steps to optimize their tax position. While the specifics of any forthcoming tax law changes remain uncertain, prudent tax planning is a smart move. Here are essential considerations to incorporate into your year-end business review.
1. Document Gathering and Resource Planning
Solid tax preparation hinges on thorough documentation and adequate resources. Don’t wait until the eleventh hour to assess your documentation needs and devise a plan to acquire essential resources.
2. Bonus Depreciation and Business Expensing
The Tax Cuts and Jobs Act initiated a phase-out of bonus depreciation through 2026. Assets placed in service before December 31, 2024, are eligible for a 60% bonus depreciation, while those in 2025 qualify for 40% bonus depreciation. Evaluating these opportunities before year-end is crucial.
3. Pass-Through Business Income Deduction Management
If your business is a pass-through entity, you may qualify for the qualified business income (QBI) deduction, potentially allowing for up to 20% of your QBI from a trade or business. Review your business income, deductions, wages, and property to maximize this benefit before the year ends.
4. Year-to-Date Business Results Review
Gaining an understanding of your business’s year-to-date income and deductions is key to effective tax planning. Proper analysis may enable you to accelerate or defer income recognition or tax deductions. For pass-through businesses, assess estimated payments and withholdings for potential adjustments.
5. Research and Development (R&E) Expenses
R&E costs incurred may need to be capitalized and amortized over a period of time. Evaluate the impact of R&E costs on your tax calculations and consider any potential allowances or deductions available for these expenses.
6. Preparation for Form 1099 and Ancillary Returns
Anticipate the preparation and filing of information returns such as Form 1099 and payroll-related filings, ensuring that essential information, such as vendor W-9s, is obtained promptly.
Proactive tax planning is time-intensive and best approached before the new year. We encourage business owners to engage in comprehensive discussions with their tax advisors. At Keystone CPAs & Advisors, our dedicated professionals are equipped to assist with a wide range of tax scenarios. We remain vigilant in tracking evolving tax laws and stand ready to offer tailored solutions. Schedule a consultation to delve into the specific strategies most suitable for your business.
Optimize your tax position for 2024 and ensure your business is well-prepared for the upcoming year. Contact Keystone CPAs & Advisors to embark on a strategic discussion that could shape your business’s financial future.
Strategies to Reduce Your 2025 Tax Liability
Strategies to Reduce
Your 2025 Tax Liability
Are you looking to strategically lower your tax burden for 2025? We understand the importance of proactive tax planning to minimize surprises and optimize your financial strategy. Here are key tax tips to consider before the end of the year.
1. Optimize Your Investment Portfolio
Capital loss carry forwards can play a crucial role in your tax strategy as they do not expire. Evaluate the potential benefits of utilizing any large capital loss carryforwards you have. Additionally, if you have substantial capital gains in the current year, explore opportunities for tax loss harvesting in collaboration with your tax and investment advisors.
2. Diversify Your Retirement and Investment Accounts
Well-diversified accounts, including traditional and ROTH IRAs as well as 401ks, can significantly reduce your tax liability for 2025. Depending on your income limits, you may be eligible for tax credits or deductions for your contributions. Keep in mind that making a traditional IRA contribution and taking a deduction is possible until April 15, 2025.
3. Leverage Health Savings Accounts (HSAs)
Consider contributing to an HSA, with individual coverage allowing up to $4,150 and family coverage up to $8,300. You have until the federal tax filing deadline of April 15th to contribute for the previous year. Explore how HSAs can serve as a powerful retirement tool, particularly for individuals with minimal annual medical expenses.
4. Maximize Child Tax Benefits
If you have children, it’s essential not to overlook potential tax credits and deductions, including the child tax credit, earned income tax credit, child and dependent care tax credit, and education tax credits and deductions. Each of these benefits has distinct phaseout income and age limits, emphasizing the need to consult your tax advisor for personalized assistance.
How Keystone CPAs Can Assist You
These tax tips offer a glimpse of the comprehensive assistance we provide. At Keystone CPAs, we recognize that the intricacies of the tax code can be perplexing. Our team is dedicated to working with you to gain a clear understanding of your tax situation and develop a customized tax strategy to minimize your tax burden not only for the current year but also for the future. Contact us online to schedule a consultation, or reach out using the contact information below.
With our expertise and proactive approach, let’s together pave the way for a tax-efficient and financially optimized 2025.
Connect with us for a personalized tax planning consultation at Keystone CPAs.