By Samantha Ramirez, CPA, Manager, Tax & Advisory
ASL Real Estate Group
General Passive Rules
The general passive activity rules under Internal Revenue Code Section 469 define passive activities as any trade or business in which the taxpayer does not materially participate, OR a rental activity without regard to the level of participation. Passive activities that produce losses, can only be offset against passive income. If the taxpayer has no passive income, the losses will be suspended until the activity is sold in a taxable transaction. (more…)
By Amanda White, CPA, Manager, Tax & Advisory
ASL High Net Worth Group
The idiom “Have Your Cake and Eat It Too” is defined by the Cambridge dictionary as “to have or do two good things at the same time that are impossible to have or do at the same time”. In this article, we will go over why we believe that Charitable Remainder Trusts (CRTs) are similar to this idiom. (more…)
By Deepa Bhat, CPA, CFE, ACA, Principal, Assurance & Advisory
ASL Construction Group
How often have we heard the phrase “Cash is King”? So, following that logic, one would think an overbilled contractor is in an advantageous position. That is generally true assuming the following conditions are met: (more…)
Subchapter S corporations offer a number of tax advantages, but they can also lead to complications. One longstanding concern is the question of “reasonable compensation” for S corporation shareholders who are also officers or employees of the company. Several provisions in the 2017 Tax Cuts and Jobs Act (TCJA) have drawn added attention to this issue—and to the sizable penalties that companies can incur if they do not manage officer compensation properly. (more…)
A new issue tops this year’s annual IRS Dirty Dozen list of tax scams. The agency’s 2023 list of common tax-related frauds and abuses begins with a warning about the widespread promotion of ineligible claims for the Employee Retention Credit (ERC). The annual notice also lists a variety of other schemes—more than the promised dozen, in fact—that fraudsters often use to con businesses and individual taxpayers. (To see the entire list, visit IRS Wraps Up 2023 Dirty Dozen List) (more…)
The Small Business Administration recently announced an expansion of the businesses eligible for their Historically Underutilized Business Zone (HUBZone) program. The federal government has established a goal of annually awarding 3% of federal contract dollars to HUBZone certified businesses. Being a HUBZone certified business has other government contracting advantages including bidding on contracts limited to certified businesses, receiving preferential treatment for open contracts; and getting a 10% price evaluation preference in open contract bidding. (more…)
Several recent court cases could have important implications for businesses and individuals who maintain accounts in foreign banks, brokerages, or other financial institutions.
In one case, the U.S. Supreme Court significantly curtailed the potential penalties for account holders who inadvertently fail to comply with reporting requirements related to their foreign accounts. That decision has generated hope among other petitioners who have incurred penalties in similar cases.
Any taxpayer with a foreign financial account should be aware of these easily overlooked reporting requirements and the recent court rulings that could affect them. (more…)
The SECURE 2.0 Act, which was signed into law in late December 2022, contains many provisions that can impact employers, employees, and retirees. We covered the key provisions in a previous article, SECURE Act 2.0 – Helping Employees and Employers With Retirement Savings. Now, we are going to concentrate on how the Act affects employers including new requirements and the potential for increased administration and compliance costs. (more…)
By Misty Shore, CPA, MST, Tax Senior
UPDATE March 22, 2023 – The California Voluntary Compliance Program (VCP) is open as of today, which allows unclaimed property holders to determine if they qualify for a waived interest assessment. Holders must complete a VCP Interest Form to receive an application. After submitting a completed application form, approved holders that meet all program requirements, which includes completing a training program and meeting reporting deadlines will be eligible for waived interest (12 percent) on past-due unclaimed property reported under the program. For additional information and to complete an interest form, visit: California Voluntary Compliance Program. (more…)