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Business Interest Expense: How Much Can You Deduct?

The Tax Cuts and Jobs Act (TCJA) imposed a new limitation on deductions of business interest expense by certain companies. And the limit, found in Section 163(j) of the Internal Revenue Code, became even more restrictive in 2022 — especially for capital intensive businesses. As a construction business owner, you should determine whether the deduction…

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Tax Tips: January/February 2023

Now may be the time for a Roth conversion If you’ve watched the value of your retirement accounts shrink in recent months, there may be a silver lining: It’s an ideal time to convert your IRA or 401(k) plan into a Roth account. Roth IRAs and Roth 401(k)s offer many attractive benefits, including tax-free withdrawals…

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Consider the Use of an ILIT To Avoid Estate Tax

Holding a life insurance policy can provide peace of mind if you have concerns about your loved ones’ financial well-being after your death. Whether you “hold” the policy or a trust holds the policy can result in different tax outcomes. In short, if you’re left holding the policy at death, its proceeds will be included…

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Section 179D: Congress Enhances Tax Deduction for Energy-Efficient Buildings

The Inflation Reduction Act (IRA) significantly enhanced the Section 179D deduction for energy-efficient commercial building improvements placed in service after 2022. Among other things, the IRA nearly tripled the maximum deduction to $5 per square foot under certain circumstances and made it easier for improvements to qualify for the deduction. The IRA also expanded eligibility…

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Adopting a Child? Tax Benefits Can Help Defray the Cost

If you’re adopting a child, or plan to do so in the future, you know that the process can be expensive. Although expenses are minimal for adoptions through the foster system, the cost of adopting a child through a private agency averages around $43,000 in the United States. Fortunately, there are tax benefits that can…

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SECURE 2.0 law may make you more secure in retirement

A new law was recently signed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. SECURE 2.0 is meant to build on the original…

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Save for retirement by getting the most out of your 401(k) plan

Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution. Because…

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Pick the right accounting method for your business

Timely, accurate financial information is essential to running a successful business. There are a number of accounting methods you can use to record and track your business’s financial performance. Here’s an overview of cash, tax and accrual basis accounting to help you choose a method that’s appropriate for your situation. Cash basis Often startups and…

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News for Nonprofits: Winter 2023

Community foundations pull back on funding A new survey of 98 community foundations representing about $38 billion in assets reveals a worrisome trend for nonprofits that rely on foundation funding. The FEG 2022 Community Foundation Survey from Cincinnati-based Fund Evaluation Group (FEG) Investment Advisors indicates that only 6% of community foundations expect to change their…

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Is a CFO the Right Choice for Your Nonprofit?

As nonprofits grow, some may struggle with the financial side. Let’s face it, nonprofits generally begin with a vision or passion, and not with financial know-how. For some organizations, a chief financial officer (CFO) may be a good choice. What does a CFO do? Generally, the nonprofit CFO (also known as the director of finance)…

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