The Treasury Department announced today that it will not enforce any penalties or fines related to the Corporate Transparency Act’s beneficial ownership reporting rule, both under existing deadlines and after upcoming regulatory changes. Additionally, a proposed rule will be introduced to limit the reporting requirement to foreign companies only. This move aims to support American […]
Looking for a New CPA? We’re Here to Help! If your CPA has recently retired, you might be wondering who will handle your tax filings, financial planning, and accounting needs for 2024 and beyond. A trusted CPA is essential for managing your personal and business finances, ensuring compliance, and maximizing tax benefits. At KB CPA
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The Qualified Business Income (QBI) deduction offers owners of pass-through entities a significant tax advantage by allowing a deduction of up to 20% of their qualified business income. However, maximizing this deduction requires careful consideration of various factors, including taxable income thresholds and wage limitations. Understanding the 2/7 Rule: For taxpayers whose taxable income exceeds
The 2/7 Rule for Wages and Maximizing QBI Deduction Read More »
Sec. 501(c)(3) organizations engaging in fee-for-service activities must determine whether these activities advance or are “substantially related” to their exempt purpose. This distinction is critical for maintaining tax-exempt status and avoiding the unrelated business income tax (UBIT). Generally, services are not considered substantially related simply because they are provided to other tax-exempt organizations or offered
The ability to defer taxes through like-kind exchanges has long been a cornerstone of U.S. tax policy, tracing its origins to the Revenue Act of 1921. Modernized under Sec. 1031, this provision encourages economic growth by allowing taxpayers to defer taxes when exchanging real property of a similar kind. This guide provides an overview of
The Internal Revenue Service (IRS) has released its annual inflation adjustments for tax brackets and standard deductions for the 2025 tax year. These updates aim to help Americans potentially retain more of their income in the upcoming year. Each year, the IRS adjusts the federal income tax brackets, standard deduction, and other tax provisions to
IRS Announces New Tax Brackets and Increased Standard Deduction for 2025 Read More »
In 2025, individual taxable earnings up to $176,100 will be subject to Social Security tax, according to an announcement by the Social Security Administration (SSA) on Thursday. This marks an increase from the 2024 wage base limit of $168,600, which applies to earnings subject to the 6.2% Old Age, Survivors, and Disability Insurance (OASDI) tax.
Social Security Wage Base Set for 2025 Read More »
As savings from the pandemic era dwindle and financial stress becomes the leading concern for most Americans, it is evident that the U.S. needs policies that encourage increased savings. Personal savings provide financial security and drive economic growth through investment. However, our current tax system imposes double taxation on savings, incentivizing immediate consumption rather than
How Tax Reforms Can Strengthen Americans’ Diminishing Savings Read More »
Charitable Organizations Organizations dedicated solely to religious, charitable, scientific, public safety testing, literary, educational, or other specified purposes, and that meet specific criteria, are granted tax-exempt status under Internal Revenue Code Section 501(c)(3). Churches and Religious Organizations Churches and religious organizations, like other charitable entities, can qualify for federal income tax exemption under Section 501(c)(3).
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Whether a revenue-generating activity constitutes a trade or business is typically straightforward — until it isn’t. The most common confusion on this issue arises around hobbies that generate revenue and investments that involve personal involvement. Many of these activities are challenging to distinguish from trades or businesses. Having the status of a trade or business
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