Adam’s Tax Blog
Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.
Providing a Company Car? Here’s How Taxes Are Handled
Providing a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit...
How Are Court Awards and Out-of-Court Settlements Taxed?
Awards and settlements are routinely provided for a variety of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination, or harassment. Some of this money is taxed by the federal government and perhaps...
The Tax Implications of Owning a Corporate Aircraft
If you do a lot of business travel and your business is successful enough, you may have considered buying a corporate aircraft. If so, you should be aware of the tax and non-tax implications for aircraft ownership. Let’s look at the basic tax rules. Business travel...
With Year-End Approaching, 3 Ideas that May Help Cut Your Tax Bill
If you’re starting to worry about your 2021 tax bill, there’s good news — you may still have time to reduce your 2021 tax liability. Here are three quick strategies that may help you trim your taxes before the end of the year. 1. Accelerate deductions/defer income....
New Digital Asset Reporting Requirements Will Be Imposed in Coming Years
The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021. It includes new information reporting requirements that will generally apply to digital asset transactions starting in 2023. Cryptocurrency exchanges will be required to...
Small Businesses: There Still May Be Time to Cut Your 2021 Taxes
Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase assets Thinking about buying new or used equipment, machinery, or office equipment in the new year?...
Infrastructure Law Sunsets Employee Retention Credit Early
The Employee Retention Credit (ERC) was a valuable tax credit that helped employers survive the COVID-19 pandemic. A new law has retroactively terminated it before it was scheduled to end. It now only applies through September 30, 2021 (rather than through December...
Remember to Use up Your Flexible Spending Account Money
Do you have a tax-saving flexible spending account (FSA) with your employer to help you pay for health care expenses? There are some rules and reminders to keep in mind before the year ends. An account for health expenses A pre-tax contribution of $2,750 to a health...
Businesses Can Show Appreciation and Gain Tax Breaks with Holiday Gifts and Parties
At this time of year, your business may want to show gratitude to employees and customers by giving gifts or hosting holiday parties again after a year of forgoing them due to the pandemic. It’s a good time to brush up on the tax rules associated with these expenses....
Many Factors are Involved When Choosing a Business Entity
Are you planning to launch a business or thinking about changing your business entity? If so, you need to determine which entity will work best for you — a C corporation or a pass-through entity such as a sole-proprietorship, partnership, limited liability company...
Feeling Generous at Year End? Strategies for Donating to Charity or Gifting to Loved Ones
As the holidays approach, many people plan to donate to their favorite charities or give money or assets to loved ones. Here are the basic tax rules involved in these transactions. Donating to charity Normally, if you take the standard deduction and don’t itemize, you...
Would You Like to Establish a Health Savings Account for Your Small Business?
With the cost of employee health care benefits on the rise, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to set aside funds...