The 3.8% net investment income tax (NIIT) is an additional tax that applies to some higher-income taxpayers on top of capital gains tax or ordinary income tax. Fortunately, there are strategies you can use to soften the blow of the NIIT. Are you subject to the NIIT? You’re potentially liable for the NIIT if your modified adjusted gross income (MAGI) exceeds $200,000 ($250,000 for joint filers and qualifying widows or widowers; $125,000 for married taxpayers filing separately). Generally, MAGI is the same as adjusted gross income. However, it may be higher if you have foreign earned income and ..read more

Adapting to Shifting Giving Trends The recently released Giving USA report paints a concerning picture for the nonprofit sector, with total charitable giving in the U.S. declining by 3.4% in 2022. This drop comes on the heels of record-breaking pandemic-era generosity, leaving many nonprofits struggling to maintain critical services. However, this shift also presents an opportunity for organizations to reevaluate their fundraising approaches and position themselves for long-term sustainability. On an optimistic note, Barron’s projects an increase in charitable giving for 2024 and 2025. What c ..read more

A recent survey of B2B firms in six different industry groups revealed that high-growth firms value project management as the top skill among new hires. Investment in operational software is also happening more rapidly at high-growth firms to create efficiencies among smaller project teams. How can you be a more attractive candidate for high-growth, public accounting firms? Emphasize these three project management skills. Then talk about using these skills along with operational technology. Work on your communication skills Communication skills are highly desired in a project manager. It’s ho ..read more

Affordable housing accounting is more than just crunching numbers – it’s about providing homes, stability and opportunity to communities in need. This unique career path allows you to harmonize professional success with creating powerful social impact through programs like the low-income housing tax credit (LIHTC). As you gain years of experience, you’ll develop a heightened sense of responsibility, gain relevant industry expertise and adhere to professional standards to ensure these vital initiatives reach their full potential. Keeping the Human Impact in Focus Don’t lose sight of the human ..read more

In January 2024, the House passed a bipartisan tax bill that expanded the Low Income Housing Tax Credit. Called the “Tax Relief for American Families and Workers Act of 2024,” the bill restores a temporary 12.5% increase in the LIHTC and supports the use of private activity bonds to finance affordable housing developments. The bill is currently in the Senate and is facing competition from other national priorities during the 120-day legislative session. We will continue to monitor this development and provide an update. In other news, investment is anticipated to increase in the LIHTC through ..read more

Let’s talk about your accounting career. If you know what you want, how do you get there? If you’re already on a path, how do you change directions? When you have your goals at heart, it makes the journey much easier to assess. Let’s take it one step at a time. In this article, we’ll touch upon: How to set goals How to plan for advancement How to ask for training How to be accountable Setting Goals Imagine what your life looks like toward the end of your career. You’re ready to retire comfortably or maybe you have a business or you’re living in a remote part of Alaska because that’s your dr ..read more

There is a tax rule that permits your business to deduct employee bonuses in the previous tax year if bonuses are paid within 2½ months after the end of that tax year. The business gets a needed tax deduction now and your employees don’t need to report the income until the following tax year. This option isn’t available to every business or in every case. There are rules regarding your accounting method as well as the terms of the bonuses given. Here is a quick summary. See if these factors relate to your business by contacting your small business tax services leader at LvHJ. What is your acc ..read more

Tax credits are far more valuable to businesses than tax deductions because they reduce your business tax liability dollar for dollar. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC), found in Internal Revenue Service Code Section 38. To identify more tax-saving opportunities for your business this year, maximize the GBC through strategic tax planning.  What is in the General Business Credit? The GBC consists of more than 30 individual tax credits that provide incentives for a variety of business activities. Examples include: A ..read more

As individuals earn more money through work or investments, they may need to adjust their tax withholdings or estimated tax payments based on their changing situation. Here are some tips for individual taxpayers to increase cash flow, retirement savings or donations to favorite causes as part of tax planning. 401(k) Plan Contribution Limits in 2024 Individuals can contribute up to $23,000 to their 401(k) plans, 403(b) plans and most 457 plans in 2024. This is an increase from $22,500 in 2023. This is an annual cost-of- living adjustment. The catch-up limit for employees who have reached age 5 ..read more

When thinking of a career transition, many people think that they must stay within the same industry. Not true. Whether you are a teacher, a healthcare administrator or a bookkeeper for a small business, you may have many transferable skills for a public accounting career. Accounting firms are also looking for more nonaccounting majors to manage new, internal technologies, services and client needs. A 2021 Trends Report by the American Institute of Certified Public Accountants found that 57.3 percent of new graduate hires were accounting graduates and 42.7 percent were nonaccounting graduates ..read more