KERNUTT STOKES BLOG
Year-end tax planning is more challenging than usual this year due to the uncertainty surrounding pending tax legislation that could, among other things, increase top rates for ordinary income, capital gains and net investment income tax starting next year. Whether or not tax increases become effective next year, the standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely continue to produce the best results for all but the highest income taxpayers.
With many employers still having employees work from home due to COVID concerns, company holiday celebrations may look different than pre-pandemic times. However, this doesn’t mean that you can’t have festive times with your employees as there are still lots of fun ways to celebrate the holidays.
From an income tax perspective, business owners often view S corporations and partnerships as fungible forms of doing business. Although both entities generally avoid an entity-level tax by “passing-through” their income to their owners, partnerships often have significant advantages over S corporations.
FASB Modifies Risk-Free Discount Rate Practical Expedient for Lessees That Are Not Public Business Entities
The FASB issued ASU 2021-091 (“Update”) to amend the level at which private company lessees can elect the risk-free rate accounting as a practical expedient. Under the new standard, lessees can make this election by asset class rather than the current “all-or-nothing” approach for all leases.
President Biden signed the “Infrastructure Investment and Jobs Act” on Monday, November 15, 2021, after the U.S. House of Representatives passed H.R. 3684 on Friday, November 5, 2021, in a 228 to 206 bipartisan vote. The Senate had approved the same version of the bill on August 10, 2021.
A third version of H.R. 5376 (the Build Back Better Act) was released on November 3, 2021 by the House Budget Committee. This draft increases the state and local tax deduction, brings back many of the retirement proposals from the original September 13 draft of the Build Back Better Act, and retains the surcharge on high-income individuals, estates and trusts from the October 28 version.
Based on studies performed by the Association of Certified Fraud Examiners (ACFE), the number one way that frauds are detected in organizations is consistently through tips. One of the ways you can increase the amount of tips your organization receives is through the implementation of a reporting hotline. Hotlines can be inexpensive and highly effective.
A version of H.R. 5376 (the Build Back Better Act), released on October 28, 2021 by the House Budget Committee, eliminates many of the previously proposed tax increases that would have impacted individuals.
After months of negotiations, the White House has announced a framework for President Biden’s Build Back Better agenda, a $1.75 trillion package of social infrastructure measures paid for by tax increases.
Senate Democrats have released details of two tax proposals – a minimum tax on large corporations and a tax on billionaires – that, if enacted, would be used to help pay for spending for social infrastructure under the Build Back Better Plan.
As we get closer to the end of the year, it’s time to evaluate your business’ success. Here are four key performance indicators (KPIs) to help evaluate your business’ performance and start planning for the future.
Recruiting season has begun. Are you ready?
Here are three things all accounting students should do to get the most out of the 2021 recruiting season.