AB FinWright LLP Blog
1 FOLLOWERS
AB FinWright LLP is a CPA firm based in Los Angeles, CA providing small to mid-sized businesses and individuals with tax, accounting, and advisory services. Follow the blog for expert insights and news updates on Tax management and savings on your costs.
AB FinWright LLP Blog
1y ago
Happy May!
Happy May! In this issue, we are highlighting federal updates for your workplace and minimum wage updates for California employers.
FLSA Update for all US Employers!
The PUMP for Nursing Mothers Act
The FLSA, or Fair Labor Standards Act, provides protections and rights to most nursing parents in the workplace, including reasonable breaks from work to express breast milk, each time they have to pump, for up to one year after their child’s birth.
President Biden signed the “Providing Urgent Maternal Protections for Nursing Mothers Act” (or PUMP Act), into law ..read more
AB FinWright LLP Blog
1y ago
In general, income can be received in three ways – money, services, and property – and IRS requires you to declare most of this income on your tax return. Income is taxable unless specifically exempted by law, and in some cases, even nontaxable income must be disclosed on your tax return.
Taxable Income
Typically, the following types of income are required to be declared on your tax return, and you must pay tax on them:
Wages
Salaries
Commissions
Strike pay
Rental income
Alimony (for divorces finalized before 2019)
Royalty payments
Gains on stock sales
Dividend and interest income
Self-employ ..read more
AB FinWright LLP Blog
1y ago
A rising tide floats all boats.
It’s easy to make money in an up market. When an industry grows, your business will most likely grow with it. How? By focusing on increasing revenues and not worrying about whether you have the infrastructure to handle it. This is even more so during EXTREME growth like the cannabis industry experienced from 2018-2020. Most cannabis businesses rode that wave of extreme growth.
But what about when an industry slows down? I have many clients in the cannabis industry. The cannabis industry in Canada and most of the United States is s ..read more
AB FinWright LLP Blog
1y ago
The gig economy refers to a labor market characterized by short-term contracts or freelance work as opposed to permanent jobs. It encompasses a wide range of industries, from ride-sharing and food delivery services to freelance writing and graphic design. Instead of being classified as traditional employees, many workers in the gig economy are considered independent contractors or self-employed individuals.
Tax Challenges for Independent Contractors
As an independent contractor, one of the primary challenges is managing taxes. Unlike employees who receive a regular paycheck ..read more
AB FinWright LLP Blog
1y ago
Tax fraud is a serious offense that involves intentionally evading or misrepresenting information on tax returns to avoid paying the correct amount of taxes. In the United States, it is taken very seriously by both federal and state authorities, and anyone caught engaging in such activities could be subject to significant penalties and even criminal charges, including possible prison time.
Tax fraud occurs when individuals or businesses use deliberate deception to reduce their tax liability. It is important to note that tax fraud is different from tax avoidance, which involves using lega ..read more
AB FinWright LLP Blog
1y ago
As technology has continued to advance and transform, our lives have become intertwined with digital goods and services. We buy e-books, stream movies, subscribe to online music platforms, and even seek services from freelancers through online platforms. The digital economy has revolutionized the way we live, work, and connect with one another.
Taxation of Digital Goods
Digital goods encompass a wide range of products (such as digital music, videos, online games, etc.), and when it comes to taxing these goods, in the United States they are generally treated similarly to physical goods. Unlike ..read more
AB FinWright LLP Blog
1y ago
In recent years, the rise of remote work has significantly impacted the way we approach employment. Whether you are self-employed or an employee working from home, you may be wondering about the potential tax benefits of your home office. It’s important to understand the differences between the home office deductions available to self-employed remote workers and remote workers employed by a company, so you can strategize to achieve the maximum tax savings for your specific situation.
A home office deduction allows you to claim certain expenses related to the space you use exclusively for work ..read more
AB FinWright LLP Blog
1y ago
If you haven’t, don’t worry – it’s a fairly new concept that’s been gaining popularity in recent years. A digital nomad is someone who works remotely and is not tied down to a physical location. This means they can work from anywhere with an internet connection, whether it be a coffee shop, a co-working space, or even a beach in Maui.
The rise of the digital nomad lifestyle is largely due to advancements in technology that have made remote work more accessible than ever before, and its popularity exploded when the COVID-19 pandemic hit. With the ability to communicate and collaborate online, m ..read more
AB FinWright LLP Blog
1y ago
If you haven’t, don’t worry – it’s a fairly new concept that’s been gaining popularity in recent years. A digital nomad is someone who works remotely and is not tied down to a physical location. This means they can work from anywhere with an internet connection, whether it be a coffee shop, a co-working space, or even a beach in Maui.
The rise of the digital nomad lifestyle is largely due to advancements in technology that have made remote work more accessible than ever before, and its popularity exploded when the COVID-19 pandemic hit. With the ability to communicate and collaborate online, m ..read more
AB FinWright LLP Blog
1y ago
As the popularity of cryptocurrencies continues to grow, so does the scrutiny from government agencies like the Internal Revenue Service (IRS). The IRS has been working hard to ensure that taxpayers who invest in cryptocurrency are properly reporting their gains and losses on their tax returns. In this article, we’ll discuss what cryptocurrency taxes are, how they work, and what you need to do to comply with the law.
What Are Cryptocurrency Taxes?
Cryptocurrency taxes are the taxes that you owe on any gains or losses that you realize from the sale or exchange of virtual currencies. The IRS tre ..read more