Inflation Reduces Income Tax
As the country emerges from the COVID pandemic and supply chain issues, along with the fallout from the war in Ukraine, the country has been experiencing high inflation rates that negatively impact the cost of everyday living, including food, gas for your vehicle, utilities and more. But there is one shining light: tax-related inflation adjustments that will benefit most taxpayers. However, many media outlets have been touting the IRS’ recently released inflation adjustments for 2023 as if [Read More]
Is This an Opportune Time to Convert Your Traditional IRA to a Roth IRA?
If your traditional IRA is invested in stocks and/or mutual funds, the recent substantial downward slide by the stock markets may provide a unique opportunity to convert your traditional IRA to a Roth IRA at a low cost, and then benefit when the markets recover. Why would you want to do that? Because Roth IRA distributions provide tax-free retirement benefits while payouts from Traditional IRAs are taxable. Of course, there is no assurance that the [Read More]
Pivot CPAs Named Among Accounting Today’s “Best Accounting Firms for Women”
Pivot CPAs, the area’s largest locally-owned independent CPA firm, is pleased to announce that the firm was recently named as one of the 2022 “Best Accounting Firms for Women” by Accounting Today. “We are continually striving to support the women who work on the Pivot team and to make our firm a workplace that enriches women, both personally and professionally,” said Peter Reynolds, CPA, managing partner of Pivot CPAs. “The women of Pivot make extraordinary contributions [Read More]
Best Practices for Avoiding Cash Flow Problems With Your Business: A Guide
If you had to make a list of some of the biggest issues that plague small business owners regularly, cashflow problems would undoubtedly be right at the top. Cash flow is about more than just the money coming into and going out of your business. It represents your ability to capitalize on opportunities as an entrepreneur as opposed to watching them pass you by because you lack the necessary cash on hand. It's about making [Read More]
Everything You Need to Know About Starting a Business: Your Step-by-Step Guide
According to one recent study conducted by the Small Business Administration, there are approximately 32.5 million organizations that classify as a small business in operation in the United States. Half of all American workers are either employed by a small business or own a small business and are significant drivers of not only the economy in this country but on a global scale as well. Coming up with an idea for a new business, however, [Read More]
Solar Tax Credit Gets New Life
The Inflation Reduction Act signed into law by President Biden on August 16, 2022, gives new life to the federal tax credit for the purchase and installation costs of residential solar-power systems and provides guidelines allowing batteries to also qualify for the credit. The solar credit is a percentage of the cost of a solar electric system installed on a taxpayer's first or second residence located in the U.S. Before the passage of the Inflation [Read More]
Important Tax Due Dates – October 2022
October 2022 Individual Due Dates October 11 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 11. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover [Read More]
Research Credit Potentially Doubled By The Inflation Reduction Act
The Inflation Reduction Act that President Biden signed into law back in August, has a lesser-known provision that could benefit many small business startups, allowing them to potentially double the amount of the research and development tax credit they can claim from $250,000 to $500,000 per year against payroll taxes. This little-known tax benefit for new, qualified small businesses is the ability to apply a portion of their research credit – up to $500,000 after [Read More]
Health Savings Accounts Fill Multiple Tax Needs
The Health Savings Account (HSA) is one of the most misunderstood and underused benefits in the Internal Revenue Code. Congress created HSAs as a way for individuals with high-deductible health plans (HDHPs) to save for medical expenses that are not covered by insurance due to the high-deductible provisions of their insurance coverage. However, an HSA can act as more than just a vehicle to pay medical expenses; it can also serve as a retirement account. [Read More]
Pivot CPAs Named Among Accounting Today’s “Best Accounting Firms to Work for”
Pivot CPAs, the area’s largest locally-owned independent CPA firm, is pleased to announce that the firm was recently named as one of the 2022 “Best Accounting Firms to Work for” by Accounting Today. “Being recognized by Accounting Today on multiple occasions is truly a testament to the fantastic work environment that Pivot offers its team members,” said Peter Reynolds, CPA, managing partner of Pivot CPAs. “These lists are highly competitive, and I cannot emphasize enough [Read More]