Taxes 2025 – New Tax Threshold On Capital Gains 2024-2025
Capital Gains Capital gains are the profit earned when a capital asset is sold for more than its original purchase price. Capital assets include stocks, bonds, real estate, mutual funds, and other investments. Essentially, capital gain is the increase in the value of an asset over time that is realized upon its sale. At this […]
Taxes 2025 – Health Savings Account Contribution-Deductible
Health Savings Account (HAS) According to the IRS, a Health Savings Account (HSA) contribution refers to the amount of money that an individual or their employer can deposit into an HSA (a tax-exempt trust or custodial account set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur) annually. These […]
Taxes 2025 – Gift Tax Exclusion Increase
Gift Tax Exclusion Increase For the 2024/2025 tax season, the IRS has increased the annual gift tax exclusion to $19,000 per recipient, up from $18,000 in the 2023/2024 tax season. This represents a $1,000 increase that reflects adjustments for inflation. Married couples can combine their exclusions, allowing them to gift $38,000 per recipient in 2024/2025, […]
Taxes 2025 – Tax Credit Options for Large Purchases
Tax Credit Options for Large Purchases The IRS provides several tax credit options for large purchases. They include the Electric Vehicle (EV) Tax Credit, the Energy Efficient Home Improvement Credit, the Residential Energy Credit, and the Sales Tax Deduction for Major Purchases, a provision not conforming to the established credit principle. The Electric Vehicle (EV) […]
Taxes 2025 – Tax Credits & Deductions For Businesses
What Are Deductions (EBT) & Tax Credits For Businesses According to the IRS, businesses can take advantage of various deductions and tax credits to reduce their tax liability. Applying the deductions results in the line item on an income statement called earnings before taxes (EBT,) or, in other words, the business tax liability. Credits can […]
Taxes 2025 – Tax Credits & Deductions For Individual Taxpayers
What Are Tax Credits & Deductions For Individual Income Taxpayers According to the IRS, tax credits and tax deductions are two ways to reduce a tax bill. Still, they work differently: For individual tax credits are amounts that can be deducted directly from taxes owed to the IRS. Some credits are refundable (e.g., Earned Income […]
Benefits of having an accountant/bookkeeper
Accounting for Derivatives Financial derivatives are contracts whose value is derived from the performance of an underlying asset, index, rate, or other financial instruments. Major kinds of derivatives include futures, i.e., contracts to buy or sell an asset at a predetermined future date and price that are standardized and traded on exchanges; options which are […]
Benefits of having an accountant/bookkeeper
Financial Negotiations Financial negotiations for a small business involve discussions and agreements that impact the company’s financial health and survival. Negotiations can have many goals including securing funding (financing and investments,) forming partnerships, purchasing assets, selling the business, or even developing the terms for proposals and sales contracts. For a small business, to sustain its […]
Benefits of having an accountant/bookkeeper
Compliance and Legal Requirements Small businesses must comply with or adhere to many laws and regulations to ensure their smooth and lawful operations. Compliance requires an understanding of the morass of laws and regulations that apply to specific business activities. This complicated situation includes federal, state, and local regulations, tax laws, employment laws, health and […]
Benefits of having an accountant/bookkeeper
Tax Accounting Tax accounting involves all the methods and principles to comply with tax laws and regulations, strategizing financial decisions to minimize tax liabilities, and the preparation and submission of tax returns accurately and on time. Compliance with tax laws and rules ensures that all economic activities align with the current tax laws. This includes […]