Listen up if you’re into crypto, Big changes are coming for tax time in 2025. Remember that whole thing about people buying and selling crypto without paying taxes? Yeah, Congress isn’t a big fan. So, they’re making companies that deal with crypto report everything to the IRS, just like stockbrokers do. It’s a bit complicated, so the IRS is taking its time (we’re talking over 280 pages of rules!) to figure out exactly how this will work. Here’s a breakdown of the new crypto tax reporting rules coming into effect in 2025: New Form for Crypto Transactions: Starting in 2025, companies ..read more

Did you know that even missing one tax deadline can lead to penalties and headaches? Don’t let that happen! The new year is here, and with it comes tax season! That’s why we are sharing the 2024 Federal Tax Calendar to help you stay on top of important deadlines. But what if you’re worried about missing a deadline or have a complex tax situation? Schedule a tax assessment with our team. We’ll work with you to understand your unique situation and develop a tax strategy tailored to your needs, ensuring you maximize deductions and minimize your tax burden.   April 1 File Elect ..read more

Imagine this: Dr. Smith, a successful dermatologist in Beverly Hills who generates over $5 million annually, has entrusted his tax filings to a seemingly reputable wealth management firm for five years. They assure him everything is handled, even providing fabricated documents as “proof” of electronic filing. However, Dr. Smith was unaware that his tax returns had never been filed with the IRS. Years later, during a routine audit, the IRS uncovers the discrepancy. Dr. Smith faces a significant tax burden. Let’s analyze the potential financial blow: Back Taxes: Dr. Smith could owe over $8 ..read more

Feeling stressed about old tax returns? The IRS has limitations on how far back they can look. Let’s explore these timeframes and ease your worries! The statute of limitations clarifies when the IRS can no longer audit your tax return or assess additional taxes. In most cases, the IRS has three years from the later of two dates: your filing deadline (typically April 15) or the actual filing date. Generally, audits happen within 12-18 months of filing. However, some exceptions extend the audit window to 6 years: Significant Omissions: You left out more than 25% of your income or over $5,0 ..read more

Dreaming of retiring as a millionaire? With the deadline approaching to maximize your IRA contributions for the 2023 tax year by April 15, 2024, now is the prime opportunity for young adults to kickstart their journey toward financial independence. Navigating the complexities of financial planning can be daunting, but IRAs offer a clear pathway to achieving your goals. Let’s explore how IRAs can empower you to take control of your financial future. Traditional and Roth IRAs: A Brief Overview Both traditional and Roth IRAs offer powerful tools for achieving your financial goals, whether you’re ..read more

The Corporate Transparency Act (CTA), already in effect since January 1, 2024, for new entities and looming ahead for existing ones by January 1, 2025, is a key legislative development in the global fight against money laundering and terrorism financing. This Act mandates the disclosure of real owners in entities such as certain corporations, LLCs, and limited partnerships. The move is particularly significant for LLCs, historically used to obscure property ownership. Penalties for Non-Compliance: Civil fines amounting to $500 per day without a cap. Criminal penalties, including fin ..read more

Imagine your business breaking barriers and reaching new heights. Is your current legal structure a hidden obstacle? For established entrepreneurs and new business owners, the right entity choice is key to unlocking growth, operational efficiency, and financial peace of mind. Why reassess your business structure in 2024? Here’s a quick guide: For New Businesses: Avoid a misfit structure that leads to: Heavy tax burdens Difficulty in fundraising Hurdles in scaling effectively For Established Businesses: An outdated structure might: Not align with your evolving business goals Increase liabili ..read more

Tax season is just around the corner! Feeling overwhelmed with choosing between e-filing and paper returns? Don’t worry; we’ve got you covered. Let’s break down the pros and cons of each method: E-filing offers: Immediate IRS confirmation: No waiting for processing like with paper returns. Efficiency: Saves time and hassle compared to manual forms and mailing. Potential security risks: Ransomware and data breaches are concerns, especially with A.I. Paper filing offers: Potentially higher security: No sensitive data transmitted electronically. No immediate confirmation: This can lead to proc ..read more

Significant updates for student loan borrowers have been announced! President Biden disclosed the cancellation of $1.2 billion in student loan debt, benefiting around 150,000 borrowers and contributing to a total debt forgiveness of $138 billion for nearly 3.9 million borrowers during the Biden administration. Who is eligible for this recent relief? This forgiveness round applies to borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. The SAVE plan forgives remaining debt after 10 years of income-driven payments for borrowers initially borrowing $12,000 or less. Forg ..read more

Love and taxes? Aren’t those like oil and water? Well, not quite! While Valentine’s Day may not scream “tax deductions,” there are a few interesting tidbits to consider for both businesses and individuals: For Businesses: Spread the Love (and Deductions): Decorate with hearts and share romantic offers – it might be partially tax-deductible as advertising! Remember good records and link spending to your promotions. Small Gifts, Big Impact: Show employee appreciation with chocolates or flowers! These “de minimis fringe benefits” can be deducted under a certain limit (check with your accountant ..read more