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 […]
Annual Inflation Adjustments Announced for Tax Year 2025
As tax year 2025 approaches, the IRS has announced its annual inflation adjustments, impacting over 60 tax provisions. These adjustments, outlined in Revenue Procedure 2024-40, affect everything from standard deductions to tax rate brackets and benefit limits, with increases set to reflect inflation. Understanding these changes is crucial for taxpayers to plan their finances and […]
Social Security Wage Base for 2025 Announced
The Social Security Administration (SSA) recently announced an increase in the Social Security wage base for 2025. This adjustment affects the maximum amount of individual earnings subject to Social Security taxes, which impacts both employees and employers. These changes come as part of the SSA’s annual adjustments, aimed at accounting for inflation and maintaining the […]
Common Tax Filing Mistakes and How to Avoid Them
Filing taxes can be a stressful task for individuals and small business owners alike, and even a small mistake can lead to penalties, delayed refunds, or an IRS audit. By being aware of common tax filing mistakes, you can take the necessary steps to avoid them, making tax season smoother and stress-free. Here are some […]