The IRS will begin accepting tax returns on January 24th, so here are some tips to stay in the know and on top of your money this year: File early, file accurately: There are a ton of things about tax returns that are out of the filer’s control. The best way to ensure you don’t end up lagging behind, is to stay ahead! Filing early will let you get your return earlier, but it also helps make sure that if there are any issues, you won’t be late fixing them. Dependent Care Credit increases: The Child and Dependent Care Credit was expanded from 35% to 50% in 2022, meaning that you could increa ..read more

1.     Long-term Capital Gain Sales – depending on your taxable income (see chart on last page), consider selling stocks held longer than one year (long-term) sheltered by the 0% tax rate, if applicable.  2.     Gifting Appreciated Stock - Gifting of appreciated stock is a great way to help your favorite charity or church without having to recognize the gain on the sale of stock.  The IRS allows for taxpayers to donate appreciated securities and deduct the fair market value of the security without having to recognize and pay tax on the sale of ..read more

As of the date of this article, the "Build Back Better Act" (BBBA) has not been enacted into law. It is expected, though not certain, to be enacted by year end. If enacted, it may impact strategies on when to recognize income and expenses.   100% Bonus First-Year Depreciation – Businesses are permitted a deduction for machinery and equipment bought new or used (with some exceptions) if such purchases are placed in service this year. The 100% write-off is permitted without any proration based on the length of time an asset is in service during the tax year. As a result, the 100% bonus fi ..read more

Important dates and documents to know! As the year draws to a close, please keep these urgent dates in mind for collecting and submitting your tax documents for 2021: 1099 reporting This reporting requirement applies to all business entities, rental properties and/or business activity reported on Schedule C of your personal return. IRS requires Forms 1099 be sent to sub-contractors, Attorneys, or un-incorporated vendors to whom you paid $600 or more during the normal course of business. Forms 1099 are NOT required if such payments were made via credit card, or on payments made for persona ..read more

2021 has been a bounce back year for businesses across the United States, and that means taxes will bounce back hard as well. When you’re preparing for tax season, the earlier you start, the better prepared you’ll be, and the quicker you’ll get your return. Here are some tips for the year-end to make sure that your tax filings go smoothly. Tax Filings to be prepared for: 1099’s - Right now is a great time to scrub your vendor list for potential 1099 filings. This can save a lot of time and money come January when you will be under the gun for the 01.31 deadline. W-2’s - Send a quick n ..read more

Thanks in advance for taking the time to check out our monthly newsletter. My name is Russell Wallace and I am a CPA and co-founder of Wallace Accounting & Advisory. For the past 6 years, my team and I have been 100% focused and committed to helping dentists and physicians keep more of their hard-earned money by implementing personalized tax strategies designed to specifically for healthcare professionals like yourself. Because we focus on building one to one relationships with each of our clients, we are able to learn more about each doctor’s specific situation and work with them to put t ..read more

2019 Last-Minute Section 199A Strategies That Reduce Taxes Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review three year-end moves that (a) reduce your income taxes and (b) boost your Section 199A deduction at the same time. First Things First If your taxable income is above $160,700 (or $321,400 on a joint return), then your type of business, wages paid, and property can reduce and/or eliminate your Section 199A tax deduction. If your deduction amount is less than 20 percent o ..read more

Few things are as traumatic as dealing with the death of a loved one. Just as we're experiencing pain, legal issues hit us: Insurance companies, reading the will, investments — suddenly it's overwhelming. And perhaps the most difficult issue is probate. Probate? It's crucial in tying up the deceased's affairs. Preparing for the possibility of probate early can lessen the emotional stress and strain on you and your family. Probate is the process a court takes to conclude legal and financial matters after death. The court will distribute your estate. If there's a will, the court will go by what ..read more

When you open a new account, make an investment or begin to receive payments reportable on Form 1099, you must provide your taxpayer identification number (often your Social Security number). For certain types of payments, you need to provide your taxpayer identification number in writing, certifying under penalties of perjury that it's correct. Backup withholding can apply to most kinds of payments reported on Form 1099, including: Interest payments. Dividends. Patronage dividends, but only if at least half the payment is in money. Rents, profits or other income. Commissions, fees o ..read more

If you're like many people, you have a great deal of your wealth tied up in traditional IRA accounts. Why? The tax-free benefits have motivated you. But there's going to come a time when you—or your heirs—will have to pay taxes on this money. Instead of worrying about what you're going to do about that, you can follow a tax-saving strategy that considers designating your favorite charity or charities as beneficiaries of all or a portion of your IRAs. Then you can leave other assets to family members and other heirs. Your IRAs are considered part of your estate when you die, which means it's su ..read more