Use a business valuation pro to evaluate solvency
Solvency refers to a business’s ability, at a specific point in time, to meet its long-term interest and repayment obligations. Business valuation pros may be hired to provide solvency opinions that can help creditors determine whether liquidating companies can meet repayment obligations. They also may come into play in fraudulent conveyance, bankruptcy alter ego and due diligence actions. Contact the CPAs and business advisors at SEK to perform a comprehensive solvency analysis for your business.
Better tax break when applying the research credit against payroll taxes
The credit for increasing research activities is a valuable tax break for eligible businesses. To qualify for the election a taxpayer: 1) must have gross receipts for the election year of less than $5 million, and 2) be no more than five years past the period for which it had no receipts (the start-up period). Contact the CPAs and business tax advisors at SEK for more information and tax tips.
April 15 is the deadline to file a gift tax return
If you made substantial gifts of wealth to family members in 2023, you may have to file a gift tax return. The return is due by April 15 of the year after you make the gift, so the deadline for 2023 gifts is coming up soon. Generally, a federal gift tax return (Form 709) is required if you make gifts to or for someone during the year that exceed the annual gift tax exclusion ($17,000 per person for 2023 and $18,000 per person for 2024). Contact the CPAs and tax advisors at SEK for more details.
How do you create projects in QuickBooks Online?
QuickBooks Online can tell you where your money comes from and where it’s going in very detailed, customizable reports.
Nonprofits: Plan now to reimburse staffers, board members and volunteers
Even if your not-for-profit rarely needs to reimburse staffers, board members or volunteers, reimbursement requests almost certainly will come up. A reimbursement policy will make the process easier and reduce the risk of any disagreements. Contact the CPAs and business advisors at SEK for guidance on creating this policy.
New option for unused funds in a 529 college savings plan
Many parents begin saving with 529 college savings plans when their children are young. Contributions aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. Earnings used for other purposes may be subject to income tax plus a 10% penalty. What if you have a large 529 plan balance but your child doesn’t need all the money for college? There’s a new 529-to-Roth IRA transfer. Contact the CPA's and business advisors at SEK for more information and tax tips.
Tax-wise ways to take cash from your corporation while avoiding dividend treatment
If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, keep in mind that a dividend distribution is taxable to you as a shareholder but it’s not deductible by the corporation. Thankfully, there are some alternatives that may allow you to withdraw cash from a corporation and avoid dividend treatment. Contact the CPAs and business tax advisors at SEK if you’re interested in discussing these or for other tax tips.
Lines may blur when it comes to estate and family business succession planning
If you own a closely held business and don’t take the proper estate planning steps to ensure that it lives on after you’re gone, you may be placing your family at risk. One challenge of transferring a family business is distinguishing between ownership and management succession. Contact the CPAs and business advisors at SEK to learn how to protect your family business and ensure the right estate planning.
Small businesses can help employees save for retirement, too
Many small business owners believe they can’t afford to sponsor a qualified retirement plan for employees. If this is the case for your company, be aware that there are some relatively inexpensive, simple options worth considering. Contact the CPAs and business tax advisors at SEK for more info.
Arm your nonprofit against financial threats
Whether it’s inflation, trouble finding staffers in a tight labor market or cybersecurity, nonprofit leaders have a lot to worry about. Even though the economy is generally healthy, there are big ways to strengthen your not-for-profit to help withstand future challenges. Contact the CPAs and business advisors at SEK with questions and for more tax tips.