Strong portfolio performance can bring an unwelcome surprise: an additional 3.8% federal tax. The income thresholds for the net investment income tax (NIIT) aren’t annually adjusted for inflation and haven’t changed since the tax took effect in 2013. So the NIIT is hitting more taxpayers. If your income is near or above the applicable threshold, […]
Audit preparation should begin long before fieldwork starts. Giving your accounting team and external auditor time to address significant transactions, reconcile accounts and assemble supporting documents can help streamline the audit process and avoid financial-reporting delays. Communicate significant developments Internal and external changes may bring opportunities and risks that could affect your auditor’s procedures. Identify […]
If your estate plan includes gifts, bequests or other transfers to grandchildren, great-grandchildren or other beneficiaries decades younger than you, the generation-skipping transfer (GST) tax deserves careful attention. Without proper planning, transfers that skip a generation can potentially trigger a significant federal tax in addition to gift or estate taxes. GST tax rules at a […]
Tax law changes taking effect this year will increase alternative minimum tax (AMT) risk for some higher-income taxpayers. If you may be affected, consider the AMT before implementing income or deduction timing strategies. A move that would reduce your 2026 regular tax might provide little or no benefit under the AMT — or could trigger […]
Health care costs remain a significant concern for many small and midsize employers that sponsor health insurance plans. And for good reason — one recent study by professional services firm Aon projected a 9.5% year-over-year increase in these costs in 2027. One way some organizations address the problem is by implementing a wellness program that […]
Many individuals invest in real estate to help diversify their portfolio, create an income stream for themselves from rental income and build net worth over time. Often, this is a side activity to a career in another field or running another type of business — not the individual’s primary source of income. Holdings might range […]
Mutual funds offer an easy way to invest in a diversified portfolio compared to buying individual stocks and bonds. But the tax treatment of mutual funds isn’t so simple. How are mutual funds taxed? If you sell appreciated mutual fund shares, the resulting profit will be taxable. If you’ve held the shares for one year […]
An important decision you must make when creating your estate plan is who’ll inherit your assets. While many of your beneficiaries are likely capable of managing an inheritance responsibly, others may be vulnerable to financial pressures, creditor claims, poor spending habits or other challenges that could erode the wealth you’ve worked hard to build. One […]
Offering paid family and medical leave (PFML) can help businesses attract and retain employees while providing workers with financial support when they need time away to care for themselves or their families. The Section 45S PFML tax credit can help eligible employers offset some of the costs. The One Big Beautiful Bill Act (OBBBA) made […]
Employers often face tough staffing choices. If you decide to let someone go because of budget cuts, restructuring or other circumstances, offering severance may seem like the right thing to do. It can offer the individual some temporary financial support while helping you manage a difficult transition. But such payments can also create unexpected costs […]
Shareholders sometimes provide funds to their businesses outside of their initial investment or regular capital contributions. These transfers — commonly referred to as shareholder advances — raise an important accounting question: Under U.S. Generally Accepted Accounting Principles (GAAP), should the business report the advance as a liability or as equity? The term “shareholder” technically refers […]
When valuing a closely held business, events that happen after the valuation date are generally off limits. However, there are some key exceptions. Here’s a closer look at when business valuation professionals might need to address subsequent events, also known as ex post facto information, in their analyses. Reasonably foreseeable events The first exception relates to subsequent events that […]