Roger Rossmeisl, CPA, Author at Roger Rossmeisl, CPA

17 Sep 2021

Tax Breaks to Consider During National Small Business Week

The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider. 1. Claim bonus depreciation or a §179 deduction for asset additions Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired and placed in service in calendar year 2021. That means your business might be able to write off the entire cost of some or all asset additions on this year’s return. Consider making acquisitions between now and December 31. Note: It doesn’t always make sense to claim a 100% bonus depreciation deduction in the first year that qualifying property is placed in service. For example, if you think that tax rates will...

06 Sep 2021

Roundabouts vs Traffic Signals

Roger Rossmeisl, CPA

Automotive

As posted to the John Stossel YouTube Channel on 6/1/21 Run time: (4 minutes, 30 seconds) Do you get frustrated when you’re the only car stopped at a traffic signal? John Stossel aims to show that roundabouts are a solution to that, and more. In an interview with Carmel, Indiana mayor Jim Brainard, the mayor explains that roundabouts are safer, they save lives, and they cost less . . . and to prove that he's put his money where his mouth . . . he's replaced nearly every stoplight in his town with a roundabout. That means that his town now accounts for about 2% of all roundabouts in America. "Roundabouts are safer." A study in Wisconsin found that when roundabouts replaced typical intersections, deaths fell 38%. Crashes...

06 Sep 2021

Casualty Loss Tax Deductions Can Only Be Claimed in Certain Situations

Roger Rossmeisl, CPA

Individual Tax Briefs

Casualty Loss Tax Deductions Can Only Be Claimed in Certain Situations

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these casualty loss tax deductions harder to take. What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, fire, act of vandalism or a terrorist attack. More difficult to qualify For losses incurred through 2025, the TCJA generally eliminates deductions for personal casualty losses, except for losses due to federally declared disasters. For example, during the summer...

06 Sep 2021

How to Conduct a Remote Fraud Investigation

Roger Rossmeisl, CPA

Fraud Briefs

How to Conduct a Remote Fraud Investigation

Before the COVID-19 pandemic, most fraud investigations took place in the office or other work facility. This made it easy for investigators to gather and analyze data and interview suspects and witnesses in a face-to-face setting. But if your company allows employees to work from home — either temporarily or permanently — you may need to conduct a remote fraud investigation. In addition to suspects and witnesses working remotely, those tasked with conducting investigations (including outside experts) may also be remote. Here’s how to manage these situations. Policies and procedures First, develop policies and procedures for remote investigations. If you already have written polices for traditional fraud investigations, use them as a starting point. Some features, such as the role and processes of investigators may remain basically the...

06 Sep 2021

What IRS Auditors Know About Your Business Industry

Roger Rossmeisl, CPA

Automotive, Small Business Tax Briefs

What IRS Auditors Know About Your Business Industry

In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use the same guides to gain insight into what IRS auditors know, and what the IRS is looking for in terms of compliance with tax laws and regulations. Many ATGs target specific industries or businesses, such as new vehicle dealerships, construction, aerospace, art galleries, architecture and veterinary medicine. Others address issues that frequently arise in audits, such as executive compensation, passive activity losses and capitalization of tangible property. Unique issues IRS auditors need to...

06 Sep 2021

Tax Consequences of Employer Provided Life Insurance

Roger Rossmeisl, CPA

Individual Tax Briefs

Tax Consequences of Employer Provided Life Insurance

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax on income you don’t receive The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything to your income tax bill. But the employer-paid cost of group term coverage in excess of $50,000 is taxable income to you. It’s included in the taxable wages reported on your Form W-2 — even though you never actually receive it. In other words, it’s “phantom income.” What’s worse, the cost of group term insurance must be determined under a table prepared by the IRS even...

06 Sep 2021

Getting a Divorce? Be Aware of Tax Implications if you Own a Business

Roger Rossmeisl, CPA

Small Business Tax Briefs

Getting a Divorce? Be Aware of Tax Implications if you Own a Business

If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When an asset falls under this tax-free transfer rule, the spouse who receives the asset takes over its existing tax basis (for tax gain or loss purposes) and its existing holding period (for short-term or long-term holding period purposes). Let’s say that under the terms of your divorce agreement, you give your house to your spouse in exchange for...

01 Sep 2021

Travel . . . and Travel Scams . . . are Back

Roger Rossmeisl, CPA

Fraud Briefs

Although COVID-19 remains a concern, many people have started traveling again — both for business and pleasure. Unfortunately, as travel demand has increased, so has travel-related fraud. For example, some fraud perpetrators posing as airline employees call would-be victims to try to elicit credit card numbers. Other scam artists send phishing emails that appear to offer cheap seats or rooms. And there are plenty of fake websites masquerading as legitimate travel companies. Don’t fall for fraud As you plan your next trip, take these steps to help reduce fraud risk: Ignore unsolicited communications. Whether you receive an email, text, flyer or telemarketing call regarding travel bargains, it’s probably smart to ignore it. Afraid of missing out on a legitimate deal? Directly contact the airline, hotel or rental car company...

01 Sep 2021

ABLE Accounts May Help Disabled or Blind Family Members

Roger Rossmeisl, CPA

Individual Tax Briefs

ABLE Accounts May Help Disabled or Blind Family Members

There may be a tax-advantaged way for people to save for the needs of family members with disabilities — without having them lose eligibility for government benefits to which they’re entitled. It can be done though an Achieving a Better Life Experience (ABLE) account, which is a tax-free account that can be used for disability-related expenses. Who is eligible? ABLE accounts can be created by eligible individuals to support themselves, by family members to support their dependents, or by guardians for the benefit of the individuals for whom they’re responsible. Anyone can contribute to an ABLE account. While contributions aren’t tax-deductible, the funds in the account are invested and grow free of tax. Eligible individuals must be blind or disabled — and must have become so before turning...

27 Aug 2021