Lessons of 2020: Change management
December 4, 2020 Knowledge Center
Lessons of 2020: Change management

The year 2020 has taught businesses many lessons. The sudden onset of the COVID-19 pandemic followed by drastic changes to the economy have forced companies to alter the size of their workforces, restructure work environments and revise sales models — just to name a few challenges. And what this has all meant for employees is change. […]

Steer clear of the wash sale rule if you’re selling stock by year end
December 4, 2020 Knowledge Center
Steer clear of the wash sale rule if you’re selling stock by year end

Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule. IRS may disallow the loss Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities […]

Employees: Don’t forget about your FSA funds
December 3, 2020 Knowledge Center
Employees: Don’t forget about your FSA funds

Many employees take advantage of the opportunity to save taxes by placing funds in their employer’s health or dependent care flexible spending arrangements (FSAs). As the end of 2020 nears, here are some rules and reminders to keep in mind. Health FSAs  A pre-tax contribution of $2,750 to a health FSA is permitted in both […]

Only specific trusts are eligible to hold S corporation stock
December 3, 2020 Knowledge Center
Only specific trusts are eligible to hold S corporation stock

S corporations must comply with several strict requirements or risk losing their tax-advantaged status. Among other things, they can have no more than 100 shareholders, no more than one class of stock and only certain types of shareholders. In an estate planning context, it’s critical that any trusts that own S corporation stock — or […]

Cutoffs: What counts in 2020 vs. 2021
December 1, 2020 Knowledge Center
Cutoffs: What counts in 2020 vs. 2021

As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). Strict observance of these rules is generally the safest game plan. The basics Companies that follow GAAP must use the accrual […]

Avoid these four estate planning deadly sins
December 1, 2020 Knowledge Center
Avoid these four estate planning deadly sins

According to literature, the “seven deadly sins” are lust, gluttony, greed, laziness, wrath, envy, and pride. Although individuals may be guilty of these from time to time, other types of “sins” can be fatal to an estate plan if you’re not careful. Here are four transgressions to avoid. Sin #1: You don’t update beneficiary forms. Of […]

2021 COLAs for popular fringe benefits
November 27, 2020 Knowledge Center
2021 COLAs for popular fringe benefits

The IRS recently released 2021 cost-of-living adjustments (COLAs) for a wide variety of tax-related limits, including those related to many popular fringe benefits. Here are some highlights to be aware of: Health Flexible Spending Accounts (FSAs). For 2021, the dollar limit on employee salary reduction contributions to health FSAs will remain at $2,750. Qualified transportation fringe […]

How to minimize turnover in your accounting department
November 27, 2020 Knowledge Center
How to minimize turnover in your accounting department

The demand for qualified accounting and finance personnel has grown, as business owners struggle to manage unpredictable cash flows, increased costs, and new government policies and financial aid packages. Plus, the potential job market for these professionals has expanded, thanks to technological changes that now allow them to transcend geographic boundaries and work from virtually […]

Using footnotes to disclose your nonprofit’s financial information
November 25, 2020 Knowledge Center
Using footnotes to disclose your nonprofit’s financial information

Does anyone actually read footnotes? If they’re financial statement footnotes, the answer is usually “yes.” Footnotes can provide donors, governmental supporters and other stakeholders with critical information about your not-for-profit. So it’s important to work with your CPA to make sure your footnotes are accurate and thorough. Operations and accounting policy snapshot One important set […]

Taking distributions from a traditional IRA
November 24, 2020 Knowledge Center
Taking distributions from a traditional IRA

Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the fine points of the IRA distribution rules can make a big difference in […]

Putting the finishing touches on next year’s budget
November 20, 2020 Knowledge Center
Putting the finishing touches on next year’s budget

By now, some businesses have completed their 2021 budgets while others are still crunching numbers and scrutinizing line items. As you put the finishing touches on your company’s spending plan for next year, be sure to cover the finer points of the process. This means not just creating a budget for the sake of doing […]

How Series EE savings bonds are taxed
November 20, 2020 Knowledge Center
How Series EE savings bonds are taxed

Many people have Series EE savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself and put them away in a file cabinet or safe deposit box. You may wonder: How is the interest you earn on EE bonds taxed? And if […]