Maryland bFile and Maryland Tax Connect
Per communication on January 19, 2024, from the Comptroller of Maryland's office in regards to bFile and Maryland Tax Connect: January 18, 2024 - Last day to submit new Admissions and Amusement returns or make payments using the bFile system.
Nonprofits: Why uncertainty calls for a more flexible budget
When times are turbulent, your not-for-profit’s budget could end up falling short. Even if you’ve already made a fixed budget for 2024, consider taking a different approach in the future. Identify variable costs and revenues and the effect trigger events might have on them. Then reforecast items likely to differ substantially from your original estimates. Contact the CPA's and business advisors at SEK to answer your tax questions and for more tax tips.
A power of attorney is a critical component of an effective estate plan
While much of your estate plan focuses on actions that take place after death, it’s equally important to have a plan for making critical financial or medical decisions if you’re unable to make them for yourself during your lifetime. This is why including a power of attorney in your estate plan is a must. Contact the CPA's and business advisors at SEK for additional details.
Tax-favored Qualified Small Business Corporation status could help you thrive
Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea. QSBCs are the same as C corporations for tax and legal purposes, except shareholders are potentially eligible to exclude from federal income tax. However, you must meet several requirements set forth in the Internal Revenue Code. Consult with the CPA's and business tax advisors at SEK if you’re interested in operating your business as a QSBC or for more tax questions and tax tips.
Comparing inter vivos and testamentary trusts
Trusts are used to accommodate asset transfers beyond dispositions in a will. There are two main types: the inter vivos trust and the testamentary trust. The choice between an inter vivos or testamentary trust often depends on your estate planning objectives, including tax implications and whether you want to avoid probate or maintain control over assets. Contact the CPA's and business advisors at SEK to answer your tax questions and for more tax tips.
The kiddie tax could affect your children until they’re young adults
The “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. Contact the CPA's and business tax advisors if you want more information or for more tax tips.
Understanding reporting obligations under the Affordable Care Act (ACA)
The Affordable Care Act (ACA), also known as Obamacare, has been a landmark legislation impacting healthcare in the United States. Understanding and fulfilling reporting obligations under the ACA is crucial for employers to avoid penalties and ensure compliance.
Does your business have employees who get tips? You may qualify for a tax credit
If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. The credit is claimed as part of the general business credit. Contact the CPA's and business tax advisors for questions about this potentially valuable tax break, tax news and more tax tips!
Nonprofits: Got independent contractors? Get to know Form W-9
If your not-for-profit is shorthanded, you may decide to engage independent contractors to pick up some of the slack. Organizations need a completed Form W-9 for every nonemployee they pay for services. Contact the CPA's and business tax advisors at SEK for your tax questions and more tax tips and tax news.
Timing counts when valuing a business
A business’s value may change significantly over time, so it’s important to choose the valuation date carefully. This date serves as a cutoff for the information that can be used to estimate value. In general, events that happen after the valuation date can’t be considered, unless the information was “reasonably known or knowable” on the valuation date. The CPA's and business advisors at SEK can help you determine what’s appropriate based on relevant laws and case facts.