Archives for Industry News

Ryan Working, CPA, MST Tax Partner   When thinking about charitable giving there are many options and opportunities in addition to donating cash to your favorite charity.  Highlighted here are just a few alternative strategies that may be worth looking into. Donation of Highly Appreciated Stock: The donation of highly appreciated stock allows for the avoidance of having to recognize the capital gain from the sale of the stock, yet you can still receive a charitable deduction at the fair market value of the stock. In order for this to work the stock needs to be donated directly to a
Read More

Traditional IRAs are a well-known, tax-deferred retirement saving vehicle. But they come with a major downside: You’re taxed on withdrawals. Roth IRAs eliminate this downside. You can take federal-income-tax-free qualified withdrawals, but the trade-off is that contributions to Roth accounts don’t reduce your current-year taxable income. If you want to jump on the Roth IRA bandwagon, there are two ways to get money into a Roth account. First, you can make annual contributions. However, there are limitations on annual contributions, which leave many high earners in the cold. (See “Can You Make Annual Roth IRA Contributions for 2024 and 2025
Read More

Albert Yang, CPA Tax Director   The IRS recently released draft Form 7217, Partner’s Report of Property Distributed by a Partnership, and related draft instructions. The purpose of Form 7217 is to report all distribution of property that a partner receives from a partnership. A partner receiving a distribution of property from a partnership in a non-liquidating or liquidating distribution will use the form to report the basis of the distributed property. Type of distribution where Form 7217 IS required: Distribution of property subject to section 732. Types of distributions where Form 7217 IS NOT required: Distributions of money (or
Read More

Greg Lambourne, Esq. Jason Gonzalez   United States citizens should be aware the Corporate Transparency Act (CTA) requires virtually all business entities registered in the 50 states to submit detailed written disclosure of their owners and powerholders to the US Treasury’s Financial Crimes Enforcement Network (FinCEN). These new “Beneficial Ownership Information Reports” (BOI Reports) for entities created before 2024 need to be filed by the end of the year when the Act enforcement begins. The BOE Reports require the names, addresses, and driver’s licenses or passports of all individuals that directly or indirectly own 25% or more of the company’s
Read More

By Gregory Lambourne, Esq. Senior Planning Consultant   Most Californians don’t realize they have access to one of the greatest protections for their retirement nest egg; Greater than protections available for 401(k)s, IRAs, and other pension plans.  California Civil Procedure Code section 704.115(b) provides unlimited statutory exemption from lawsuits and creditor claims for assets held in trust pursuant to a “private retirement plan”. Understanding the intricacies of this statute, case law, and best practices is crucial to maximizing benefits and avoiding potential planning pitfalls. A California resident may have a company they own or work for sponsor a retirement plan
Read More

By Jennifer Haddad, CPA Audit Partner   The Secure 2.0 Act of 2022 changed the rules for hardship withdrawals for employee benefit plans by allowing Plan Sponsors to rely on self-certification by an employee for a hardship withdrawal in lieu of requiring documentation.  An employee must certify that they a) have an immediate and heavy financial need, b) the distribution is not greater than the financial need, c) the employee has no other means to meet the need, and c) the financial need is permitted by IRS regulations.  This change has allowed Plan Sponsors to streamline the hardship distribution process,
Read More

The IRS Section 280A, often referred to as the “Augusta Rule,” presents a unique tax-saving opportunity for homeowners who run businesses. Named after the city of Augusta, Georgia, where homeowners rent out their properties during the Masters Golf Tournament, this provision allows homeowners to rent out their homes to their businesses for short periods without having to report the rental income. Here’s a closer look at this tax loophole and how it can benefit you. What is IRS Section 280A? IRS Section 280A deals with the tax treatment of home office expenses and rental use of a taxpayer’s residence. The
Read More

Cheryl Shelton Estate & Trust Director   Do you have a buy-sell agreement with your business partner(s) and the company owns life insurance on each of you so the remaining partner(s) will have the cash to purchase your share from your estate?  If so, you will want to know about a recent Supreme Court decision that sides with the IRS stating that the life insurance payout could increase your estate. Here’s what happened: Connelly v. United States No. 23-146 (June 6, 2024) Two brothers who ran a family business entered into a buy-sell arrangement that gave the surviving brother the
Read More

Tax scams are increasingly sophisticated in 2024, with scammers continually evolving their tactics to deceive taxpayers and tax professionals. Here are some of the most prevalent tax scams this year to be cautious of: Phishing and Smishing: Fraudsters send emails or text messages that appear to be from the IRS, asking recipients to click on a link or provide personal information to claim a refund or resolve an issue. These messages often contain malicious links that can steal personal data or install malware on devices​ (IRS.gov)​​ (CPA Practice Advisor)​. AI-Driven Scams: With the rise of AI tools, scammers are creating
Read More