Blogging Beyond the Numbers

The rules for accounting for leases in a set of financial statements in accordance with GAAP (Generally Accepted Accounting Principles) will change significantly starting in 2022.  The logic for making the change is that balance sheets are currently very different for businesses that own a building compared to businesses that rent a building.  To enhance comparability between businesses the Finan...

The best choice of entity can affect your business in several ways, including the amount of tax you will pay. In some cases, businesses decide to switch from one entity type to another. S corporations can generally provide substantial tax benefits over C corporations (because of single level tax versus double tax); in some circumstances there are potentially costly tax issues that may be triggered before m...

The Internal Revenue Service has released the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable and medical purposes. [table id=12 /] The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the...

On December 22, Congress passed the Consolidated Appropriations Act, 2021 (the “Act”).  The Act serves as a vehicle to provide pandemic relief as well as to fund government operations through the fiscal year.   The Act is best categorized as three bills in one huge package: Stimulus Relief (i.e., another rebate, PPP Round 2 and unemployment insurance)Tax Extenders andSpending Appro...

Unfortunately, the COVID-19 pandemic has forced many businesses to shut down permanently. Legally closing your business can require several steps to wrap up the company’s financial affairs and notify the government and tax authorities.  If this is your situation, we’re here to assist you in any way we can, including taking care of the various tax compliance obligations that must be met. Of cour...

Several of the grant programs targeting the tourism industry announced last week are now accepting applications. These grants, funded by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF) and administered by the Wisconsin Department of Administration (DOA), will help Wisconsin’s small businesses and venues that serve as cultural catalysts in communities...

If you’re selling a business interest, real estate or other highly appreciated property, you could get hit with a substantial capital gains tax bill. One way to soften the blow — if you’re willing to tie up the funds long term — is to “roll over” the gain into a qualified opportunity fund (QOF). What is a QOF? A QOF is an investment fund, organized as a corporation or partnership, designe...

To provide businesses and their owners with some relief from the financial effects of the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act eases the rules for claiming certain tax losses. Here’s a look at the — mostly temporary — modifications. Liberalized rules for NOL carryforwards The CARES Act includes favorable changes to the rules for deducting net operating...

To provide tax relief to businesses suffering during the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily relaxes the limitation on deductions for business interest expense. Here’s the story. TCJA created new limitation Before the Tax Cuts and Jobs Act (TCJA), some corporations were subject to the so-called “earnings stripping” rules. Those rules att...

Whether you are a new or a well-established business, maintaining good business records is essential to supporting your business income and tax deductions. Good recordkeeping means you also claim the full amount of tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns if you’re ever audited by the IRS or state tax agencies. It...