Understanding the percentage of completion accounting method

A viable option when when construction projects are delayed or stopped In the complex and sometimes chaotic world of long-term construction projects, many contractors find themselves struggling to accurately align the revenue coming in with the expenses being paid out. This is where the percentage of completion method of accounting often comes in handy. When executed …
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Vacation rentals: Avoid tax pitfalls, max out the benefits

Vacation homeowners need to carefully observe all the federal income tax rules for rentals. With some astute tax planning before the summer rental season begins, you can sidestep any potential tax pitfalls — and maximize the tax benefits. The Basics Many vacation homeowners rent out the property at least part of the year to defray …
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Get ready for the 2023 gift tax return deadline

Did you make large gifts to your children, grandchildren or others last year? If so, it’s important to determine if you’re required to file a 2023 gift tax return. In some cases, it might be beneficial to file one (IRS Form 709) — even if it’s not required. Who must file? The annual gift tax …
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Weighing business deductions as tax season arrives

As tax season approaches, businesses across various industries are gearing up to minimize their tax liabilities. Amid this pursuit, an essential avenue for potential savings lies in identifying deductible business expenses. However, not every business expense is eligible for deduction. Here’s a breakdown of what businesses need to know about claiming, or foregoing, deductible business …
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By the numbers: Charting key federal tax changes for 2024

It’s crucial to stay abreast of the latest updates shaping the tax landscape for 2024. From adjustments in Social Security and Medicare tax wage bases to changes in Individual Retirement Account (IRA) contribution limits, the terrain is undergoing shifts that can significantly impact individual planning strategies. Below is a list of key updates ranging from …
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Young adult retirement savings: Traditional vs. Roth IRAs

As more than half of 16-to-24-year-olds are gainfully employed, according to the Bureau of Labor Statistics, it’s crucial to guide the younger generation toward financial responsibility and long-term planning. While a job provides valuable lessons, why not take it a step further and encourage them to start saving for retirement? Young adults with earned income …
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How to properly deal with common payroll tax questions

Navigating the complex landscape of payroll tax rules poses a formidable challenge for businesses, particularly when hiring new employees or when existing employees experience personal changes affecting their tax status. Such circumstances often raise concerns about recordkeeping requirements and withholding obligations. We delve into some of the most common scenarios that have recently drawn the …
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E-filing now required for businesses with 10+ info returns

If your business files 10 or more information returns, you must now file them electronically. This is a significant rule change that went into effect on January 1, 2024, for 2023 tax year information returns. The threshold for electronically filing most information returns dropped from 250 to 10. Before the new rule, only businesses filing 250 …
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IRS Mileage Rate for Business Driving Increases for 2024

The IRS has announced the 2024 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Background: If you use a vehicle for business driving, you can generally deduct the actual expenses attributable to your business use. This includes expenses such as gas, oil, tires, …
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Year-end tax strategy ideas as 2024 approaches

As the holidays approach, it’s time to consider tax-planning moves that will help lower this year’s tax bill, as well as set you up for tax savings in future years. The good news is that it appears no significant unfavorable federal tax changes will take effect in 2024. Assuming that’s an accurate prediction, here are seven …
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