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accounting-fair-value-faqs
Accounting Fair Value FAQs 1600 941 smolinlupinco

Accounting Fair Value FAQs

Over the past decade, the accounting industry has seen many rule changes that affect reporting of certain items on balance sheets. One such change is the guidance that certain items be reported at “fair value.” Read on to learn more about this new reporting standard and how to measure it accurately. What is fair value?…

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tax-issues-changing-to-s-corporation-from-c-corporation
Tax Issues Caused By Changing to an S-Corporation from a C-Corporation 1600 941 smolinlupinco

Tax Issues Caused By Changing to an S-Corporation from a C-Corporation

For some small businesses, switching to an S-corporation entity structure from a C-Corp can reduce federal employment taxes. Despite the financial savings your company can enjoy while operating under this new classification, there are some additional taxation liabilities to keep in mind before making this change.  To better understand how your business could be impacted…

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cash-basis-accrual-accounting-methods-guide-for-small-businesses
Cash-Basis and Accrual Accounting Methods: A Quick Guide for Small Businesses 1600 941 smolinlupinco

Cash-Basis and Accrual Accounting Methods: A Quick Guide for Small Businesses

When they first start out, many small businesses use the cash-basis method of accounting. However, many eventually switch to accrual-basis reporting in order to conform with U.S. Generally Accepted Accounting Principles (GAAP).  This quick guide can help you decide which method is right for your business. The cash-basis method of accounting Businesses using the cash-basis…

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important-2022-q2-tax-deadlines-for-businesses-and-employers
Important 2022 Q2 Tax Deadlines for Businesses and Employers 1600 941 smolinlupinco

Important 2022 Q2 Tax Deadlines for Businesses and Employers

Businesses and other employers should take note of these key tax-related deadlines for the second quarter of 2022.  April 18 Calendar-year corporations must use Form 1120 file a 2021 income tax return or use Form 7004 to file for an automatic six-month extension. Any tax due must be paid. Corporations must pay the first installment…

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tax-deadline-april-18th-file-for-extension
The Tax Deadline Is April 18th: If You Aren’t Ready, File for an Extension 1600 941 smolinlupinco

The Tax Deadline Is April 18th: If You Aren’t Ready, File for an Extension

This year’s tax filing deadline is rapidly approaching—if you don’t have time to gather your tax information and file by April 18th, you can use Form 4868 to file for an extension. An extension allows you to avoid incurring “failure-to-file” penalties and will give you until October 17 to file. However, you’re still required to…

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using-crummey-trusts-take-advantage-annual-gift-tax-exclusion
Using Crummey Trusts to Take Advantage of the Annual Gift Tax Exclusion 1600 941 smolinlupinco

Using Crummey Trusts to Take Advantage of the Annual Gift Tax Exclusion

For 2022, the unified gift and estate tax exemption is set at $12.06 million, adjusted for inflation, up from $11.7 million for 2021. For many families, this means estate tax liability won’t be a concern. However, others may still benefit from using the annual gift tax exclusion as an estate planning strategy, especially since future…

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subsequent-events-financial-reporting
Subsequent Events and Financial Reporting 1600 941 smolinlupinco

Subsequent Events and Financial Reporting

In financial reporting, “subsequent events” are major events or transactions that occur after the reporting period ends but before financial statements are finalized. These events may include cyberattacks, natural disasters, regulatory changes, and the loss of a large business contract. Whether or not you should report these subsequent events is something of a gray area,…

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audits-related-party-transactions
Audits and Related-Party Transactions 1600 941 smolinlupinco

Audits and Related-Party Transactions

Business transactions involving related parties—including parent companies, subsidiaries, affiliated entities, relatives, and friends—sometimes occur at above- or below-market rates. This can cause your company’s financial statements to become misleading to the people who rely on them, since undisclosed related-party transactions can skew their understanding of the company’s true financial results. Auditors and related parties Because…

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Beneficiary Designations and Joint Titles: Careful Planning Avoid Overriding Will
Beneficiary Designations and Joint Titles: Careful Planning Is Needed to Avoid Overriding Your Will 850 500 smolinlupinco

Beneficiary Designations and Joint Titles: Careful Planning Is Needed to Avoid Overriding Your Will

A careless approach to beneficiary designations and jointly titled assets can easily undermine your estate plan.  For example, you may specify in your will that all of your property should be divided equally among your children. But say that your IRA accounts for half of your estate and names your oldest child as the beneficiary.…

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Defined-Value Gifts Avoid Gift Taxes
How to Use Defined-Value Gifts to Avoid Unexpected Gift Taxes 850 500 smolinlupinco

How to Use Defined-Value Gifts to Avoid Unexpected Gift Taxes

For 2022, U.S. taxpayers may transfer up to $12.06 million by gift or bequest without triggering federal transfer taxes, thanks to the highest gift and estate tax exemption in history.  However, this historically high exemption may not last forever. Unless Congress chooses to pass further legislation, the exemption amount is currently scheduled to drop to…

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Startup Businesses Research Tax Credit Payroll Taxes
Startup Businesses May Be Able to Apply the Research Tax Credit Against Payroll Taxes 850 500 smolinlupinco

Startup Businesses May Be Able to Apply the Research Tax Credit Against Payroll Taxes

If your business has increased research activities, you may be eligible to claim a valuable tax credit often referred to as the research and development (R&D) credit. Although claiming the R&D tax credit requires complex calculations, we can help take care of these calculations for you. In addition to the tax credit itself, you should…

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IRA Contribution Reduce Tax Bill
IRA Contributions: You May Still Be Able to Reduce Your Tax Bill 850 500 smolinlupinco

IRA Contributions: You May Still Be Able to Reduce Your Tax Bill

If you haven’t filed your 2021 tax return yet, you may still be able to lower your tax bill by making a contribution to an IRA. Eligible taxpayers can make deductible contributions to a traditional IRA at any time before the filing date on April 18, 2022. Making a deductible contribution now could allow you…

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