4Thought Blog

How to Maximize the Annual Gift Tax Exclusion in 2021

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…

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PPP Loans: Learn the New Guidance on the Tax Effects

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.

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4 Big Charitable Tax Breaks for Businesses, Individuals to use in 2021

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.

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Understanding and Managing Financial Ratios for McDonald’s Franchisees

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…

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New Law Cuts off Beneficial Employer Retention Credit

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…

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How Fast Can You Write off a Business Vehicle? Learn the Rules

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…

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Manufacturers: Claim Faster Write-Offs With Cost Segregation

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…

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Unrelated Business Income Tax: The Three-Part Test for Nonprofits

If certain IRS requirements are met, a nonprofit organization is exempt from federal income tax. But that doesn’t mean it’s completely off the hook. Your nonprofit may still be liable for unrelated business income tax. Here’s how you determine your organization’s exposure.

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8 Tips to Boost Creditworthiness for Construction Companies

As you probably know, construction businesses are frequently scrutinized for their creditworthiness and financial stability by sureties, banks, insurers and other parties. Your ability to build and protect your financial reputation is critical to winning work and managing risk. Building creditworthiness is a daily and monthly process. But the payoff is worth the effort: easier…

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9 Tax-Saving Moves for Individuals in 2021

With year end rapidly approaching, it’s time to consider making some moves that will lower your 2021 federal income tax bill — and potentially position you for future tax savings. Unfortunately, tax planning is particularly challenging this year, because the tax rules for 2022 aren’t yet certain. In fact, they may not even be certain…

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