Retiring soon? 4 tax issues you might face

If you’re getting ready to retire, you’ll soon experience changes in your lifestyle and income sources that could have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your retirement accounts. … Continued

IRS guidance addresses accounting method changes by foreign corporations

In the recently issued Revenue Procedure 2021-26, the IRS provided guidance regarding accounting method changes made on behalf of controlled foreign corporations (CFCs) and, in some cases, other foreign corporations. Included in the guidance is an expansion, for a limited period, in the availability of automatic consent for CFCs to change their methods of accounting for … Continued

Tax changes are here — and more are likely to follow

By Christopher Davis, CPA To date, President Biden’s American Rescue Plan has been enacted and has changed various tax credits, including the child tax credit, earned income credit and the child and dependent credit.  The American Jobs Plan and The American Families Plan (not yet law) contain several proposed changes including: The increase of the … Continued

Six key tax breaks homeowners may be able to claim

The days of classic “tax shelters”— such as cattle breeding or oil drilling deals — are long gone. But at least one major tax shelter is still standing: Your home. If you own your principal residence, you can cash in on a bevy of tax breaks, saving thousands of tax dollars or even more. Accordingly, here … Continued

Nanny tax rules: Proceed with caution

When you hire a nanny, housekeeper or other domestic worker, pay close attention to the tax rules. Over the years, there have been news stories about political appointees and others who got into trouble because they didn’t pay nanny taxes. The same could happen to anyone. You must generally pay Social Security, Medicare and federal unemployment … Continued

Physician partnerships are hard, but conflicts are avoidable

Partnerships in any industry are challenging. It’s impossible for all parties to agree on everything, and compromise can be difficult. It’s just human nature. Physician partnerships are no different. From finances to strategy, decisions must be made constantly, and each one presents opportunities for conflict.  However, there are ways to reduce tension and promote a … Continued

New tax break makes child care less expensive for certain taxpayers

The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced child and dependent care credit for 2021. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that the taxpayer can be gainfully employed. Note that a credit reduces your … Continued

Sol Schwartz & Associates named among Best Companies to Work for in Texas

Sol Schwartz & Associates has been named one of the 2021 Best Companies to Work for in Texas by the Texas Association of Business (TAB), Texas Society of Human Resources Management and Best Companies Group. This statewide survey and awards program was designed to identify, recognize and honor the best places of employment in Texas, … Continued

Entity choice: Should you convert from a C to an S corp?

The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues that you should … Continued

Your interior building improvements may qualify for bonus depreciation

This may be shocking to learn, but sometimes Congress makes mistakes. The 2017 Tax Cuts and Jobs Act resulted in Qualified Improvement Property (QIP) having a depreciable life of 39 years. Which meant you couldn’t claim bonus depreciation if you made interior improvements to a non-residential building in 2018 or 2019. But Congress corrected itself when it passed the CARES Act. The changes might mean you can claim QIP bonus depreciation under the new rules.