Navigating deferred taxes can be a confusing process, and the accounting rules for reporting deferred taxes can sometimes seem arbitrary and nonsensical when viewed through the lens of real-world economics. Here’s a brief article to help simplify this complex subject. What are deferred taxes? Companies are required to pay income tax on taxable income as […]

Supreme Court precedent once prohibited states from collecting sales tax from out-of-state businesses lacking an in-state physical presence, no matter how much the company made in sales—but this has recently changed.  With the United States Supreme Court decision in South Dakota v. Wayfair, Inc., individuals and businesses that sell products out of state are liable […]

If your business is preparing to replace a vehicle or buy a new one, you should know that a heavy SUV might provide a more substantial tax break this year than what you’d receive from a smaller vehicle.  The reason? Larger business vehicles are depreciated differently on your tax returns than smaller ones.  Depreciation guidelines […]

Do you own stock in a company whose shares dropped sharply in value or even became worthless after you purchased them? You may be tempted to simply put it behind you, but it’s important to remember that you can claim a capital loss deduction on your next tax return. Here’s what you need to know […]

Did you know that when it comes to your retirement account, not all contributions are created equal? Tax implications can have a significant impact on your savings.  In fact, after-tax contributions to a ROTH 401(k) or ROTH IRA can offer significant tax benefits while traditional 401(k)s and IRAs don't—just one of many reasons you might […]

As a result of rising interest rates and a slowing economy, last year’s merger and acquisition (M&A) activity decreased significantly. According to S&P Global Market Intelligence, the total value of M&A transactions in North America was down 41.4% in 2022 (compared to 2021).  But in 2023, some analysts anticipate increased M&A activity in some industries. […]

Retirement plan distributions are typically subject to income tax. If you take an early withdrawal, they may be subject to additional tax penalties. But what defines “early?”  Generally, it’s when withdrawals are taken out of a traditional IRA or another qualified retirement plan before the plan participant reaches the age of 59½.  These distributions are […]

With just a few weeks to file your 2022 individual tax return (unless you filed an extension), it’s understandable if your 2022 tax bills are of greater concern than your 2023 tax circumstances.  But it’s still important to become familiar with tax amounts that may have changed for 2023—particularly because, due to inflation, many of […]

Revocable trusts, sometimes called “living trusts,” can offer substantial benefits. In the event that you become incapacitated, for example, they facilitate the management of your assets. They can also help avoid probate of said assets.  But before you can obtain these benefits, you must fund the trust. In other words, you must transfer the title […]