Mission and vision statements help businesses rise above the din
Many of today’s businesses operate in a cacophonous marketplace. Everyone is out blasting emails, pushing notifications and proclaiming their presence on social media. Where does it all leave your customers and prospects? Quite possibly searching for a clear perception of your company. One way — well, two ways — to rise above the din is […]
The advantages of a living trust for your estate plan
If you own substantial assets, you may want to consider setting up a living trust to bypass the probate process. Probate is a court-supervised procedure that ensures a deceased individual’s assets are distributed appropriately. However, it often involves complex legal steps, additional costs and public disclosure of your financial matters. A living trust can help you avoid these issues. From a federal income tax standpoint, a living trust is disregarded while you’re alive. The IRS treats the assets in the trust as if they’re still owned by you personally, meaning you must continue to report any income or deductions from those assets on your individual tax return. Contact us to learn more.
Family business focus: Addressing estate and succession planning
An important issue for many family business owners is integrating estate planning and succession planning. Transferring ownership to the younger generation as early as possible allows you to remove future appreciation from your estate, minimizing estate taxes. You may also have family members who aren’t involved in the business. Providing these heirs with equity interests that don’t confer control is feasible with proper planning. And there are ways to transfer business interests without immediately giving up control. Examples include offering nonvoting stock, creating a trust, forming a family limited partnership and implementing an employee stock ownership plan. Contact us for help.
Digital assets and taxes: What you need to know
Crypto is on the IRS’s radar! If you bought, sold, mined, staked or were paid in digital assets like Bitcoin, Ethereum or NFTs, you must report it on your tax return. Near the top of your federal tax return, there’s a question asking if you received or disposed of any digital assets during the year. You must answer either “yes” or “no” and report any gains or losses. If you just hold assets or transfer them between wallets, you can answer “no.” But if you sell or convert, it’s a taxable event. Keep records of transactions, including fair market values and dates. If you receive a Form 1099 for crypto, keep in mind the IRS did too. Questions? Contact us. We’ll make sure you stay compliant.
The IRS recently announced 2026 amounts for Health Savings Accounts
The IRS recently released next year’s inflation-adjusted amounts for Health Savings Accounts. In 2026, the annual contribution limit for an individual with self-only coverage under a high-deductible health plan (HDHP) will be $4,400. For an individual with family coverage, it will be $8,750. These are up from $4,300 and $8,550, respectively, in 2025. In 2026, an HDHP will be a health plan with an annual deductible that isn’t less than $1,700 for self-only coverage or $3,400 for family coverage. And in 2026, annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) won’t be able to exceed $8,500 for self-only coverage or $17,000 for family coverage.
How your business can sharpen its marketing strategy
Creating a marketing strategy for your business isn’t a “one and done” activity. You need to continuously adapt it to factors such as the economy, marketplace changes, and customer and prospect preferences. First, refine your target selection. Consider each prospect, customer and target group as an investment. Estimate your net profit after subtracting production, sales and customer service costs. Also, think about price points. Setting prices low may attract buyers, but it can adversely affect profitability. Last, craft messaging carefully. You may need to tailor it to different market segments, but be sure to stay consistent. Contact us for help managing your marketing costs and pricing.
How working in the gig economy affects your taxes
Gig work offers flexibility, autonomy and a way to earn income, but it comes with tax obligations that may catch you off guard. Whether you drive for a rideshare service, deliver food, sell products online or offer pet walking services, it’s crucial to understand the tax implications to stay compliant and avoid costly surprises. Generally, if you receive income from a gig, it’s taxable. That’s true even if you don’t receive a 1099-NEC reporting the money you made. You may need to make quarterly estimated tax payments (the next is due June 16) because the income isn’t subject to withholding. Business expenses may be deductible, subject to the normal tax rules. Contact us to learn more.
Hiring independent contractors? Make sure you’re doing it right
Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS reclassifies them. But determining if a worker is a contractor or an employee can be complex. The IRS and courts have generally ruled that individuals are employees if the businesses they work for have the right to control and direct them in their jobs. Otherwise, they’re generally contractors. Contact us to discuss how the rules apply to your business.
Companies should take a holistic approach to cybersecurity
Cyberattacks pose a serious risk to every level and function of a business. That’s why your company should take a holistic approach to cybersecurity. First, if possible, don’t place sole responsibility for cybersecurity on one person. Delegate responsibilities to everyone on your leadership team. Second, properly identify and classify all data assets. The most straightforward way to do so is by conducting a data audit. This is a systematic evaluation of your company’s data sources, flow, quality and management practices. Third, enable employees to report suspected cybersecurity incidents easily. Provide plenty of training, retraining, upskilling and testing, too. Contact us for help.
The tax rules for legal awards and settlements: What recipients should know
If you’ve received a legal settlement or award, it’s important to grasp the tax implications. While compensation for physical injuries is typically tax-free, awards for lost wages, emotional distress and punitive damages are usually taxable. Even if your attorney is paid directly from the settlement, you may be taxed on the full amount. The way a settlement is structured can significantly affect your tax liability, making professional guidance essential. We can help you understand the rules, ensure proper reporting and potentially reduce your tax burden. Contact us to discuss how a court award or out-of-court settlement may affect your taxes.
You must be logged in to post a comment.