This is just a friendly reminder that, like we wrote about last month (on a topic we have written about somewhat frequently), the Fed is widely expected to start cutting rates on Wednesday. That makes right now a great time to execute any planned moves with income items, like locking in CDs before rates drop.

To that end, we're re-distributing our August Commonsense CPA as both reminder and primer. Find it in its original incarnation published on our blog here, or just read on!

A Qualified Tuition Plan (QTP or 529 Plan) can be a tremendously beneficial tax savings tool. Let’s take a look at some of the basics as we round out 2024!

With the Federal Reserve signaling the likelihood of rate cuts as soon as September, now is a great time to review the tax attributes of different income streams while considering strategies to lock in cash flows while rates remain high. Understanding the tax implications of various income sources can help you make informed decisions to optimize your tax liability. Here then is an overview of the tax attributes of several popular income streams.

This is your friendly, regular reminder that as of January 1 this year, the US Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, has been accepting Beneficial Ownership Information Reports, or BOI Reports. These reports are part of the Corporate Transparency Act, or CTA, which went into effect in 2024.

Uber is shutting down the alcohol delivery service it acquired for north of $1.1 billion to fold it into the main UberEats app. There were other issues with Drizly, and the company line is that Uber wanted to deliver everything under one brand, but to shutter a $1B acquisition dovetails with a larger market shift that can be constructive to small business owners.

We see it all the time. The end of the year comes along and we get a detailed list of what you’ve paid in wages throughout the year. There, front and center, is a W2 being paid to a partner. Let’s take a closer look at this picture.

Phantom income often arises when using a passthrough entity. Often a problem for LLCs, S Corps, and partnerships, phantom income occurs when the business entity reports a yearly profit, yet the owner or investors in the business do not receive cash reflecting the allocation. The IRS still taxes the full amount of the business’s income, creating tax on unreceived income for business members.

“It’s not a lie, it’s an adjustment. It’s the rule of three….if a guy tells you how many girls he’s hooked up with, it’s not even close to that. You take that number and divide by three, then you get the real total. So if Kevin’s saying it’s been three girls, it’s more like one. Or none!....The Rule of three, it’s an exact science. Consistent as gravity.” – American Pie