After a one-year hiatus due to the COVID-19 pandemic, owners of qualified retirement plans and IRAs must adhere to the rules for required minimum distributions (RMDs). The RMD rules are tricky and could result in a substantial tax penalty if you’re not careful. For starters, an RMD is the amount you must withdraw from a…
The credit for increasing research activities, commonly referred to as the research and development (R&D) credit, is one of the biggest and best tax breaks available to manufacturing companies. Unlike a deduction, a credit is a dollar-for-dollar reduction of a business’s tax liability. Plus, there’s no limit on the R&D credit amount for a particular…
The last two years have been tough for most nonprofits. Now that there’s some light at the end of the tunnel, you may feel more optimistic and with a renewed dedication to your cause.
The holidays often inspire a spirit of generosity. So, at year end, many people decide to give money or assets to their loved ones. Over time, lifetime gifts can also be an effective way for wealthy people to minimize their taxable estates. Here are the basic federal tax rules for these transactions. Beware: Quite a…
Businesses that received Paycheck Protection Program (PPP) loans can apply for forgiveness once all loan proceeds for which they are requesting forgiveness have been used. On November 18, 2021, the IRS issued a series of three Revenue Procedures addressing the tax effects when a PPP loan is forgiven. Here’s a brief rundown of each.
Are you feeling generous? Qualified charitable contributions can be rewarded with sizeable tax breaks during the second calendar year of the COVID-19 pandemic. Recent legislation includes the following four temporary tax law changes that are designed to help individuals and businesses that donate to charities through the end of 2021.
Owning and operating a McDonald’s franchise business is complicated, and even more challenging if you’re looking for growth and rewrite. A key to those opportunities is maintaining your financial ratios. McDonald’s Corp. established these ratios to ensure financial stability. A solid understanding of the ratios that make up financial viability, how they are calculated, and…
A new law has retroactively ended the Employer Retention Credit to apply only through September 30, 2021 (rather than through December 31, 2021) — unless the employer is a recovery startup business. The Infrastructure Investment and Jobs Act, signed into law Nov. 15, only has a handful of tax provisions but this one is significant…
The federal income tax rules for depreciating vehicles used for business are complicated. And different rules apply to different categories of vehicles. Special limitations apply to vehicles that are classified as passenger autos, including many pickups and SUVs. As a result of these limitations, depreciating an expensive vehicle may take longer than you’d expect. Here’s…
Manufacturers often own the building, or several buildings, where their goods are produced for public consumption. Normally, it takes almost four decades to fully recover the cost of a commercial property through depreciation deductions. Fortunately, there’s a viable alternative that can help. By commissioning a cost segregation study, a manufacturer may be able to claim…
