By Randan Salyers, CPA, Tax Senior
In 2024, if you are the owner of a short-term rental property located in California (including rentals listed on platforms such as Airbnb, VRBO, etc.), you may now be required to report the personal property used in the rental on Form BOE-571-STR, Short-Term Rental Property Statement (see resources below for a link to sample form). This new filing, with your County Assessor, was authorized by the California State Board of Equalization because they consider short-term rentals to be a trade or business. This Statement, designed specifically for short-term rental properties, will be used to report the original cost of personal property used by your short-term rental and allow the Assessor to determine the property tax due. (more…)
As of January 1, 2024, a new rule requires millions of small-to-medium-sized businesses to report detailed personal information about their owners to the U.S. Treasury Department. The rule is expected to affect more than 30 million companies in the U.S., and failure to comply could lead to sizable fines or even jail time. Yet a recent survey shows a majority of the affected businesses were unaware of this new requirement. (more…)
On January 31, 2024, in a strong bipartisan vote, the U.S. House of Representatives approved the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). The Act contains provisions benefitting individuals and businesses. To “pay for” these tax benefits, the Act authorizes the termination of the Employee Retention Credit (ERC) program effective January 31, 2024. If passed by the Senate in its current form, no ERC claims can be filed after the termination date. It is unknown at this time if and when the Senate will discuss this legislation and potentially modify it. If passed by the Senate a retro-active termination date may still apply. (more…)
By Greg Gockel, CPA, Manager, Tax & Advisory
ASL Real Estate Group
Selling your home is not just a transaction, it’s an opportunity to leverage tax strategies that can significantly impact the financial results of the sale. If the sale is correctly planned, using the power of Internal Revenue Code Section 121, you will be able to exclude up to $500,000 (couples) or $250,000 (individuals) of your capital gains. This article will coach you as we dive into some of the rules and exceptions and discuss some strategies to help maximize your tax benefits. (more…)
By ASL Business Valuation Group
The new lease accounting guidance ASC 842 brings previously off-balance sheet operating leases onto a company’s balance sheet. They are now reflected as a “right-of-use” asset and as a corresponding operating lease liability. This can increase a company’s reported assets and liabilities, affecting key financial ratios. The income statement and the statement of cash flow are affected by a lesser degree than the balance sheet. Companies will continue to expense operating leases and the depreciation expense and interest expense may be higher for some companies. (more…)
By Hyrum Davis, CPA, Manager, Assurance & Advisory
ASL Construction Group
When it comes to construction accounting, a good healthy work in progress (WIP) schedule rules the day. A WIP schedule is designed to match costs with revenue and smooth out reported gross profits, in addition to bringing financial statements in conformity with US GAAP. A healthy WIP schedule gives users important information to help them understand and analyze job performance. However, a lot of this information is based on estimates and the WIP schedule is only as good as the estimated information going into it. This begs the question, what are key indications that inputs of a WIP schedule may be incorrect? Here are some things to consider: (more…)
ACTION MAY BE NEEDED BEFORE JANUARY 31, 2024
Last week, the House Ways and Means Committee approved a bill that could imminently close the window for Employee Retention Tax Credit (ERTC) claims. If passed, the deadline to file amended payroll returns to claim the Employee Retention Tax Credit moves to January 31, 2024. There are other changes to the program including extending the period for IRS audits of ERTC claims to six years and significant penalties for promoters. The termination of ERC was included as a vehicle to pay for $78 billion in tax relief for individuals and businesses in the Tax Relief for American Families and Workers Act of 2024.
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The end of the calendar year means it’s time to get ready for another tax season. Here are 10 issues that owners, financial officers, and tax executives in closely held businesses should consider as part of their year-end activities. (more…)
Tax reporting can pose a challenge for any business, but the complexities grow when a company has operations in more than one country. A business with international operations or foreign ownership faces a large—and frequently changing—array of reporting requirements designed to provide information about a taxpayer’s foreign activities.
Failure to submit all required reports can lead to sizable fines, even if the business owners were simply unaware of the mandated obligations. Willful violations can also lead to criminal charges. (more…)
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