Retirement and the Secure 2.0 Act Provisions, Part I: Required Minimum Distributions
When signed into law on December 29, 2022, the Secure 2.0 Act had a significant impact on a variety of qualified retirement accounts. While the intent was to increase retirement savings, as well as simplify and demystify plan rules, there are substantial other effects of which to be aware. This …
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Proposed Taxes on Capital Gains and the Wealthy
Last week, President Biden introduced a proposed budget aimed at wealthy Americans with the intent of extending Medicare funding. The plan includes a series of new tax increases on asset gains, mostly targeting rich investors. According to the White House, one of the highlights is that households with a net …
Relief for Storm-Affected Taxpayers
On March 2 and February 24, the State of California and the Internal Revenue Service (IRS), respectively, announced postponement of the filing and payment deadlines to October 16, 2023. This applies for most calendar-year filing residents and businesses in the following California disaster-affected counties only. Alameda, Alpine, Amador, Butte, …
California Changing Reporting of Investor’s Tax Capital
The State of California Franchise Tax Board (FTB) clarified the reporting requirements for partnerships and limited liability companies (LLCs), delaying California tax basis capital reporting on 2022 returns. In FTB Notice 2023-01, the FTB stated that is has “become aware that certain persons required to file Schedule K-1 (565) and …
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Strategic Gift Giving to Beneficiaries
The IRS raised the gift tax allowance for 2023, up $1,000 from last year, to adjust for inflation. Individuals can provide a tax-free gift, whereby no filing is required, of $17,000 per recipient annually. While the greatest gift may be that of financial giving, the IRS wants its cut of …
2022 Tax Preparations and Updates
As the 2023 filing season rapidly approaches, taxpayers should be aware of federal tax law changes and updates that will affect individual 2022 income tax returns. The tax rates are still the same for tax year 2022; however, the income thresholds for all tax brackets increased in 2022 to …
How the EITC Puts Money Back in Taxpayers’ Pockets
Working taxpayers earning a low-to-moderate income can save money at tax time through the Earned Income Tax Credit (EITC). Originally enacted in 1975 as a temporary tax incentive, the EITC is a refundable tax credit for lower-income workers to offset the Social Security payroll tax and the rising cost of …
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Spiegel Announces Promotion to Principal
Spiegel Accountancy Corp. announced on Wednesday, January 4, 2023, that the firm promoted Audit Director, Kadidia Traore, to Principal effective January 1, 2023. Ms. Traore joined Spiegel’s audit management team in 2016, and specializes in working with mortgage bankers, private equity lenders, and employee benefit plans. Ms. Traore received …
Year-End Tax-Saving Strategies
What are some key tax-saving strategies available to taxpayers that could potentially minimize taxes? With the 2022 tax year quickly ending, there are only a few weeks left to take advantage of the available tax breaks, detailed below. Evaluate Opportunities for Roth Conversions Investors with traditional IRAs might …
2022 Meal & Entertainment Deductions Explained
The deductibility of meal and entertainment expenses for business purposes changed, temporarily, as part of the Consolidated Appropriations Act (CAA). Certain food and beverages expenses incurred during the 2022 calendar year will be 100% deductible if purchased from a qualifying restaurant. Under Notice 2021-25, the IRS defines qualifying restaurants as …
Requirements Necessary to File Information Returns
Individuals and companies engaged in a trade or business must report certain types of payments on an Information Return. This includes payments made to an individual, partnership, or estate, to name a few. The most common types of payments requiring an Information Return filing include payments for services performed …
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Business Tax Credits for Research & Development
When most people think of research and development, they likely envision research performed to discover new products or technologies. However, the Internal Revenue Service (IRS) has a much broader definition of the Research and Development (R&D) Tax Credit, defining it as “qualified research” which is technological in nature and in …