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IRS Halts Processing on ERC Tax Break ClaimsThe IRS announced on September 14 that it will be temporarily halting processing on claims for the employee retention tax credit, also known as the ERC. This is due to heightened concerns over abuse and what it refers to as “questionable claims” which may have resulted in many small businesses incorrectly claiming the tax credit...
Minimize Taxes - Boost Retirement FundsAre you looking for another way to minimize your 2023 taxable income for better tax results? Max out your annual contribution to your 401(k) retirement plan account if you haven’t already. This strategy is a two-for-one winner...
Year-end Tax PlanningThe more your business minimizes its tax liability, the better your bottom line. So, let’s look at some things you may be able to do between now and year-end to possibly lower your tax bill in April...
5 Great Money IdeasHere are 5 great money ideas to help you get ahead or move into a better financial position...
Tax Court Corner - Three Cases, Three Great TipsHere’s a roundup of several recent tax court cases and what they mean for you...
The IRS is NOT Always RightHere are several quotes from actual IRS correspondence that serves as evidence that our national tax collection agency is not always right... SERVICES
RECENT E-NEWSLETTERS
OCTOBER 2023 Q & AQ: We plan to revive employee bonuses at our pre-Covid levels this year. A business owner friend said we can deduct the bonuses for 2023 tax purposes but not actually pay them until 2024. Is this true? A: Possibly. Your friend may be thinking of the "2-1/2 month rule." Under it, an employer may deduct bonuses earned during a tax year if they pay the bonuses within 2-1/2 months after the end of that year. But only accrual-basis taxpayers can benefit. Even if you are an accrual-basis taxpayer, you can't deduct the 2023 bonuses in 2024 unless you fix your obligation to pay in writing before year's end.
Beware the Wash Sale RuleIt sounds simple. Sell securities, such as stocks, bonds, ETFs, or mutual funds, in which you have a tax loss for 2023, claim the loss, and repurchase the assets. Simple, except for the IRS’s pesky wash sale rule. The rule specifies that if you buy or acquire a substantially similar security within 30 days before or after you sell it, you cannot deduct any loss on the sale. CLAIM YOUR LOSSES But you have a couple of strategies to use to follow the rules and claim your investment loss. Hold off buying the same or a very similar investment during the 61-day period starting the date of your original purchase and ending 30 days after your sale. If you can’t wait, reinvest in a security that isn’t substantially similar to the one you sold. Consult your tax and financial professionals before using any investment sale or purchase as a tax strategy. A Look At Social Media Advertising Statistics
The social media advertising market is set to rise to $207.1 billion in 2023, with an estimated 4.53% annual growth expected to take the market to $247.3 billion by 2027. And, while social media usage typically has skewed toward the younger demographic, it is spreading to better mirror the overall population, opening untapped opportunities for all types of businesses. Sources: Instagram, Real Touch Points, Pew Research and SCORE.org
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