01 Jan 2024
0

The Standard Business Mileage Rate Goes Up Slightly in 2024

Roger Rossmeisl, CPA
Small Business Tax Briefs
The Standard Business Mileage Rate Goes Up Slightly in 2024

The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents (up from 65.5 cents for 2023). The increased tax deduction partly reflects the price of gasoline, which is about the same as it was a year ago. On December 21, 2023, the national average price of a gallon of regular gas was $3.12, compared with $3.10 a year earlier, according to AAA Gas Prices. Standard rate vs. tracking expenses Businesses can generally deduct the actual expenses attributable to business use of vehicles. These include gas, tires, oil, repairs, insurance,...

26 Nov 2023
0

Unclaimed Property Voluntary Compliance Program Now Available in California

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
Unclaimed Property Voluntary Compliance Program Now Available in California

California AB 2280 established a new Unclaimed Property Voluntary Compliance Program that waives interest for taxpayers who voluntarily come into compliance with unclaimed property reporting requirements. The State Controller’s Office (SCO) has now opened the sign up process for businesses to apply for the program. Unclaimed Property Reporting Explained California businesses holding property belonging to others must file with the SCO to report unclaimed financial assets held by the entity for longer than the dormancy period applicable to the property in question (see “Unclaimed Property Explained” below). Failure to comply without reasonable cause Businesses that fail to comply with the unclaimed property reporting requirements, and do not have reasonable cause, are subject to interest assessed at the rate of 12% on the value of the unclaimed property. There exists...

20 Nov 2023
0

Master Class in Automotive Modular Assembly

Roger Rossmeisl, CPA
Automotive
Master Class in Automotive Modular Assembly

As posted to the AutoLine Network YouTube Channel on 9/11/2023 (Run Time 10 min, 13 sec) AutoLine's John McElroy interviews Caresoft's Han Ly at the International Motor/Mobility Show in Munich.  Caresoft, a company that specializes in vehicle teardowns and benchmarking, provides insights into how Tesla designs its cars for modular assembly, notably how it eliminates fasteners and complexity. (This is Blog Post #1482) John McElroy has been called an influential thought leader in the automotive industry. He created “Autoline Daily,” the first industry webcast of industry news and analysis. He also hosts the Emmy Award-winning television program “Autoline This Week” and co-hosts “Autoline After Hours”, all of which can be found at www.autoline.tv....

20 Nov 2023
0

IRS Outlines Withdrawal Process for Employee Retention Tax Credit (ERTC) Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Outlines Withdrawal Process for Employee Retention Tax Credit (ERTC) Claims

As reported via IR-2023-193 on 10/19/2023 Special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams As part of a larger effort to protect small businesses and organizations from scams, the Internal Revenue Service announced the details of a special withdrawal process to help those who filed an Employee Retention Tax Credit (ERTC) claim and are concerned about its accuracy. This new withdrawal option allows certain employers that filed an ERTC claim but have not yet received a refund to withdraw their submission and avoid future repayment, interest and penalties. Employers that submitted an ERTC claim that's still being processed can withdraw their claim and avoid the possibility of getting a refund for which they're ineligible. The IRS created the withdrawal option to help...

14 Nov 2023
0

What to Tell Your Employees About Your Anti-Fraud Efforts

Roger Rossmeisl, CPA
Fraud Briefs
What to Tell Employees About Your Anti-Fraud Efforts

Surveillance is common in many workplaces, yet companies monitoring employee activities may keep the practice under wraps. This may be a mistake, because when workers know they’re being watched, they’re generally less likely to be dishonest. For example, several surveys have shown that clearly visible security cameras discourage employees from stealing inventory. The challenge is to disclose enough information, without revealing too much. Frequently used controls and policies Honesty and trust are essential to a healthy, productive workplace. So you need employees to know you’re taking actions to prevent fraud. On the other hand, you don’t want to provide so many details about anti-fraud controls that thieves can work around them. Following are a few frequently employed anti-fraud policies and how you might communicate them to workers: Surprise audits....

14 Nov 2023
0

How Business Valuation Pros Use Transaction Databases

Roger Rossmeisl, CPA
Valuation Briefs
How Business Valuation Pros Use Transaction Databases

Transaction databases contain the details of thousands of real-life public and private stock sales. They’re used by business valuators when they apply the guideline transaction method. This method — also known as the merger and acquisition method — is a subset of the market approach. It derives a company’s value from prices paid for companies engaged in the same, or similar, lines of business. Selection criteria Valuators start this methodology by filtering transaction databases based on specific selection criteria. These parameters affect which transactions the valuator analyzes. A minor change in the selection criteria can have a major impact on value. The most obvious selection criterion is the subject company’s Standard Industrial Classification (SIC) or North American Industry Classification System (NAICS) code. But valuators also might set parameters...

12 Nov 2023
0

Business Automobiles: How the Tax Depreciation Rules Work

Roger Rossmeisl, CPA
Small Business Tax Briefs
Business Automobiles: How the Tax Depreciation Rules Work

Do you use an automobile in your trade or business? If so, you may question how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. Depreciation is built into the cents-per-mile rate First, be aware that separate depreciation calculations for a passenger auto only come into play if you choose to use the actual expense method to calculate deductions. If, instead, you use the standard mileage rate (65.5 cents per business mile driven for 2023), a depreciation allowance is built into the rate. If you use the actual expense method to determine your allowable deductions for a passenger...

06 Nov 2023
0

Management Interviews are a Critical Part of the Business Valuation Process

Roger Rossmeisl, CPA
Valuation Briefs
Management Interviews are a Critical Part of the Business Valuation Process

When preparing a business valuation, quantitative data — from tax returns, financial statements, contracts and other sources — is important. But there’s more to a company than numbers. Qualitative factors also contribute to a company’s overall value. It isn’t always easy, however, to gain insight into qualitative aspects of a business’s operations. Websites and marketing materials can provide only limited insight. So there’s almost no substitute for conducting a one-on-one interview with a company’s owner or management team. Answering key questions Depending on why a business valuation is being sought, your valuator will ask a variety of questions during the management interview. Among other things, interviews usually provide answers to the following key questions about a company’s operations and outlook: Does the company have adequate management depth? A company’s...

06 Nov 2023
0

It’s Important to Understand How Taxes Factor Into M&A Transactions

Roger Rossmeisl, CPA
Small Business Tax Briefs
It's Important to Understand How Taxes Factory into M&A Transactions

In recent years, merger and acquisition activity has been strong in many industries. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock (or ownership interest) sale. A buyer can directly purchase a seller’s ownership interest if the target business is operated as a C or S corporation, a partnership, or a limited liability company (LLC) that’s treated as a partnership for tax purposes. The now-permanent 21% corporate federal income tax rate under the Tax Cuts and Jobs Act (TCJA) makes buying the stock of a C corporation somewhat more attractive. Reasons: The corporation will pay less tax and...

30 Oct 2023
0

Update on Depreciating Business Assets

Roger Rossmeisl, CPA
Small Business Tax Briefs
Update on Depreciating Business Assets

The Tax Cuts and Jobs Act liberalized the rules for depreciating business assets. However, the amounts change every year due to inflation adjustments. And due to high inflation, the adjustments for 2023 were big. Here are the numbers that small business owners need to know. §179 deductions For qualifying assets placed in service in tax years beginning in 2023, the maximum §179 deduction is $1.16 million. But if your business puts in service more than $2.89 million of qualified assets, the maximum §179 deduction begins to be phased out. Eligible assets include depreciable personal property such as equipment, computer hardware and peripherals, vehicles and commercially available software. §179 deductions can also be claimed for real estate qualified improvement property (QIP), up to the maximum allowance of $1.16 million. QIP...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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