Tax benefits (and pitfalls) of hiring your minor children as a small business owner
School breaks present an opportune time to involve minor children in your small business. As long as they perform legitimate work for your enterprise, hiring your child allows you to pay them up to $12,000 annually tax-free, while also claiming...
Corporate Transparency Act reporting requirements coming in 2024
A new law intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity will affect millions of American businesses when it goes into effect on January 1, 2024. Broadly speaking, new regulations created...
Tax issues when operating a business as a married couple
Operating one's own business offers the advantage of employing family members, but it's important to understand the specific employment tax requirements that apply to family employees, which can differ from those for other employees. Here are key considerations outlined by...
SR Guest Author Justin Rush, CFP®: What to ask when choosing a financial planner
When searching for a financial planner, it’s not uncommon to meet with multiple firms prior to making a final decision. Different financial planners may have different opinions, philosophies, and personalities compared to one another. Without being immersed in this field, it...
Law changes to IRS Code Section 174 create uncertainty around R&D deductions
The Tax Cuts and Jobs Act of 2017 introduced several amendments to the Internal Revenue Code, including a revision to Section 174. This section, originally established in 1954 to permit businesses to deduct expenses related to research and experimental activities,...
Inheritance or gifts from foreign persons may require Form 3520 reporting
While gifts or inheritances do not trigger U.S. income tax reporting, they can impose other filing obligations on the recipient. Regarding gifts and inheritances received from foreign individuals or entities by U.S. citizens or residents, Form 3520 (Annual Return to...
Compliance risk for people and businesses claiming Employee Retention Tax Credit improperly
The Internal Revenue Service (IRS) has issued a renewed cautionary advisory, urging individuals to thoroughly review the guidelines for the Employee Retention Credit (ERC) before attempting to claim it, as unauthorized promoters persist in encouraging ineligible individuals to file. Reports...
Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024
In December 2022, Congress passed an extensive spending bill that includes the highly anticipated retirement legislation known as SECURE Act 2.0. Among the provisions of SECURE Act 2.0 is the introduction, starting in 2024, of a new option allowing certain...
Reporting delay for thresholds for third party payment platforms
The IRS has announced a delay in the implementation of lower reporting thresholds for third-party settlement organizations (TPSOs), originally set to begin for the 2022 tax year. This means TPSOs are not required to report transactions below $600 on Form...
“Representative payee” can help Social Security or SSI recipient manage their benefits
Many Social Security recipients are capable of managing their own affairs, but not all can. If someone you love needs assistance with their federal government benefits, the Social Security Administration (SSA) can appoint a person or an organization to act as...