Tax Laws

The IRS is gearing up to get their share of digital profits. Not only are they requiring brokerage companies to report sales of digital assets, but now their is a new check box on the upcoming tax forms. When you do your taxes for 2022 next spring, you must check “yes” or “no” to the digital asset question on the front of Form 1040.

Digital assets are digital representations of value that are recorded on a cryptographically secured distributed ledger or similar technology. Examples of digital assets are:

The Consolidated Appropriations Act (CAA), 2023 that just passed Congress includes the retirement package, SECURE 2.0. Here are the major changes that can affect you and/or your small business:

The Saver's Credit is becoming the Saver's Match for tax years beginning after December 31, 2026

The Internal Revenue Service has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

It's the beginning of new year (2023) and of course, Congress has passed some new taxes for all the corporations in the country. While this will not affect most small businesses, I will briefly discuss them here for your consideration.

The first is contained in  Notice 2023-2, which provides interim guidance regarding the application of the corporate stock repurchase excise tax until the issuance of proposed regulations.

Minimum wages are increasing in 27 states

There are some new state laws that will have an effect for businesses going into 2023. The one that will probably have the most effect is that twenty-seven states will see minimum wage increases in 2023 with the majority of the states implementing them starting Jan. 1.

This new salary floor comes as a result of calls from workers' rights groups, elected officials and others to increase wages for low-income workers. The increases in minimum wage ranges from $9.95 to 15.74 among the various states.

One of the most mis-understood parts of the tax code is how to handle fringe benefits when you are a shareholder of a S corporation.  Here's a quick primer on life insurance, retirement plans and health insurance:

The number of content creators on social media have ballooned and advertising departments have noticed.  Sending their products to creators to evaluate is one of the most cost effective ways to get your name out their to an audience that is willing to listen.  

What a lot of new creators fail to address is how to handle these 'gifts' from a tax standpoint. So let's review the rules and IRS regulations that pertain to this subject. Here is an example situation to begin the discussion:

As part of an expanded focus on ensuring high-income taxpayers pay what they owe, the Internal Revenue Service today warned businesses and tax professionals to be alert to a range of compliance issues that can be associated with Employee Stock Ownership Plans (ESOPs).

The Department of the Treasury and the Internal Revenue Service issued 

This won't apply to most of us, but in the off-chance your corporation does a Billion or more in income, you should make sure you know about this...