On March 11, President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) into law—and while relief provided to individuals is perhaps the best known part of the ARPA, there are also several financial benefits and tax breaks and for businesses. Here are a few of the tax implications of the ARPA. Extension of […]

The statement of cash flows might be the most underappreciated and misunderstood piece of a company’s annual report—in essence, the statement of cash flows informs you of cash entering and leaving a business. This can be important information, since even a business that reports positive net income on its statements might not have enough cash […]

Although the COVID-19 pandemic has forced many businesses to close, there are still some entrepreneurs who have started new small businesses this year—and many begin by operating as sole proprietors. If this describes you, here are a few tax rules and considerations. QBI deductions You’re eligible to claim the pass-through or qualified business income (QBI) […]

Leaving a legacy for your children, grandchildren, and future generations is one of the most important goals of estate planning—and there’s no better way to do that than helping to provide for their educational needs. A 529 plan allows you to fund tuition and other educational expenses—and to do so on a tax-advantaged basis. However, […]

Bad news for people who are accustomed to using the optional standard mileage rate to calculate the deductible costs of operating an automobile for business: the permissible deduction rate decreased by one-and-one-half cents, to 56 cents per mile, this year. This might lead you to claim a lower deduction for vehicle-related expenses in 2021 than […]

When it comes to restricted cash, your company’s financial statements need to be transparent. Make sure your reporting practices are compliant with the current accounting guidance. What is restricted cash? Restricted cash is a type of “cash and cash equivalents” that can’t be used for general business operations or investments. Restricted cash comes in many […]

Many people are working from home during the COVID-19 pandemic. If you’re self-employed, you might be able to claim deductions for home office expenses against your business income—as long as you run your business from your home or perform certain functions there. There are two ways to claim this tax break: the actual expenses method […]

If you’re like many Americans, you may be receiving letters from your favorite charities acknowledging your 2020 donations. But can you still claim a deduction for the donation on your 2020 income tax return if you haven’t received such a letter? The answer is: It depends. Requirements for substantiation In order to support a charitable […]

In many industries, merger and acquisition activity slowed in 2020 due to COVID-19. However, analysts expect things to improve as the country emerges from the pandemic in 2021. If you’re thinking about buying or selling a business, you’ll want to make sure you understand the tax implications. Arranging a deal There are two basic ways […]