Soon after The President’s State of the Union Address, the proposed fiscal year 2025 budget was released. This outlines how the administration would implement the President’s tax policy, indicating a gross tax hike of approximately $5.3 trillion from 2024 to 2034. Notable Provisions: Increased Taxes on High Earners: Increase income taxes for individuals earning more than $400,000 per year. This policy would increase the top marginal tax rate from 37% back to 39.6%, the rate before the Tax Cuts and Jobs Act of 2017. Capital Gains and Dividends: For taxpayers earning over $1 million, the plan w ..read more

IRS Commissioner Danny Werfel reported to the Senate Finance Committee that even with the moratorium since September 2023 on processing previous and new claims for the ERC, the IRS averages 20,000 new applications weekly. The IRS recently announced ERC that claims processing could resume by late spring depending on whether Congress extends the statute of limitations for ERC claims. The Treasury Department has proposed extending the statute of limitations to give the IRS additional time to address unscrupulous ERC claims. The statute of limitations for claims processed for Tax Year 2020 expired ..read more

As housing prices and mortgage rates continue to escalate, many young people struggle to purchase their first home or upgrade. One option is for parents or family to finance the purchase of the house and hold a mortgage. The transaction is documented like a regular mortgage with monthly payments. Let’s look at the advantages: Favorable interest rates. Per the IRS, you are required to charge a minimum interest rate to avoid tax complications. For April 2024, that rate is 4.45 % for loans with a maturity of more than nine years. The current 30-year fixed mortgage is approximately 7.125%. Flexib ..read more

As housing prices and mortgage rates continue to escalate, many young people struggle to purchase their first home or upgrade. One option is for parents or family to finance the purchase of the home and hold a mortgage. The transaction is documented like a regular mortgage with monthly payments.   Let’s look at the advantages:  Favorable interest rates. Per the IRS, you are required to charge a minimum interest rate due to tax complications. For July 2023, that rate is 4.0 % for loans with a maturity of more than nine years. The current 30-year fixed mortgage is approximately 7 ..read more

Expense reimbursement remains a significant challenge for many businesses in the accounting landscape. Manual processes often lead to errors, delays, and employee dissatisfaction. To address these issues, businesses are increasingly turning to software solutions that streamline the reimbursement process and enhance accuracy and efficiency. Expense reimbursement problems are commonly rooted in paper-based systems, which result in lost receipts, data entry errors, and delayed approvals. Modern accounting software can automate these processes, providing a seamless experience for both employees a ..read more

Expense reimbursement remains a significant challenge for many businesses in the accounting landscape. Manual processes often lead to errors, delays, and employee dissatisfaction. To address these issues, businesses are increasingly turning to software solutions that streamline the reimbursement process and enhance accuracy and efficiency. Expense reimbursement problems are commonly rooted in paper-based systems, which result in lost receipts, data entry errors, and delayed approvals. Modern accounting software can automate these processes, providing a seamless experience for both employees an ..read more

For the past five years, taxpayers have enjoyed historically high gift and estate tax exemptions, thanks to the Tax Cuts and Jobs Act of 2017. This legislation doubled the exemption from approximately $5.5 million to $13.61 million per person (adjusted for inflation) in 2024. The annual gift exemption also increased to $18,000 per donee in 2024. This substantial exemption has allowed individuals and families considerable flexibility in their estate planning. Couples can effectively combine their exemptions, enabling them to gift up to $27.22 million in 2024, either during their lifetimes or at ..read more

    In today’s business environment, companies are constantly seeking ways to optimize operations and enhance efficiency. One strategy gaining prominence is outsourcing, particularly accounting functions. Outsourcing accounting services can offer a myriad of benefits, revolutionizing a business’s financial landscape. Firstly, outsourcing allows companies to tap into a pool of skilled professionals without the burden of hiring and training in-house staff. This saves time and reduces the costs associated with recruitment and onboarding. Additionally, outsourcing provides access to cut ..read more

We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the State of Alabama. In 2023, Alabama returned $50.7 million to residents, according to Alabama State Treasurer Young Boozer. These assets may be in the form of cash, stocks, uncashed checks, utility deposits, bonds, insurance benefits, or even valuabl ..read more

Alabama House Bill 391 reduced the minimum state business privilege tax in 2023 from $100 to $50.   Beginning in 2024, businesses that are subject to the minimum tax ($100 or less) are completely exempt from paying the tax and filing a Business Privilege Tax Return (BPTIN/CPT/PPT)  This means many single-member entities will no longer be required to file. One caution – just because you paid the minimum in 2023 does not mean 2024 will be the same. Changes in the income and net worth of the entity may result in an assessment in excess of the minimum tax. The rates range from $.25 ..read more