By Chris Madrid, CPA, Director, Tax & Advisory
ASL Family Wealth & Individual Tax Group
“Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes“. This is a famous quote by Benjamin Franklin and it still holds true today. However, what is currently uncertain is what will happen to the amount of estate and gift lifetime exemption and how to effectively estate plan now in light of that uncertainty. (more…)
By Carmen Barrett, CPA, MST, Senior Manager, Tax & Advisory
ASL Real Estate Group
You may have seen the social media trend about the benefits of short-term rentals (Airbnb, VRBO, etc.), the catch is simple, if you have a vacation home or other dwelling unit that is non-income producing, you can make it profitable by using it as a short-term rental, vacation or otherwise. This all sounds great but there are unintended tax consequences to consider if the operation of this venture is not set up correctly, which many catchy articles, blogs and posts do not address. Additionally, most every taxpayer is unique so don’t go it alone and heed the well-intentioned advice on social media but simply contact your trusted and knowledgeable tax advisor to determine the best path forward. After all, no one wants to become the next social media post about what not to do. (more…)
By ASL Business Valuation Group
The Inflation Reduction Act provided the Internal Revenue Service (IRS) with $79.4 billion in additional funding to transform tax administration and services. Earlier this year, the IRS released its 2023 to 2031 Strategic Operating Plan that sets forth a framework for using this funding. One of the IRS’s goals is to improve the audit procedures and possibly select more valuation cases for examination. (more…)
By Abe Livchitz, CPA, Senior Manager, Tax & Advisory
ASL Tax Group
In 2021, Congress enacted the Corporate Transparency Act in an effort to provide law enforcement agencies with the ownership information of business entities doing business in the U.S. This information is to be used to help prevent money laundering, the use of shell companies, and other financial crimes. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN, the same agency that administers the foreign bank account reporting rules) was charged with running this program often called “Beneficial Ownership Information Reporting” (BOI). The program’s rules apply very broadly so nearly all privately held businesses will be required to comply beginning January 1, 2024. FinCEN expects over 32 million entities will be filing their initial reporting in 2024. The program was designed to help prevent financial crimes but the compliance burden is falling on privately held businesses across the U.S. and according to recent surveys, most business owners are completely unaware of this new program. FinCEN has created a guide, Small Entity Compliance Guide, FAQs, and informational videos to help businesses understand and comply with these new rules. (more…)
By Claire Ding, CPA, Tax Senior
ASL High Net Worth Group
Charitable contribution deductions are one of many deductions that taxpayers frequently claim, and for many, it is a heartfelt way to make a positive impact. The most frequent contributions come in the form of cash, household items, and clothing—items often earmarked for donation during moves or home cleanups. Often, taxpayers don’t realize that proper documentation is necessary. In this article, we will cover the essential substantiation requirements for documenting these donations. (more…)