You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to make sure a deceased person’s assets are properly distributed. However, going through probate typically meansRead More »Emil @ ZCPA wrote: Benefits of a living trust for your estate

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting out inconsistencies, omissions and errors in taxpayers’ records, as illustrated by one recent U.S. TaxRead More »Emil @ ZCPA: Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses

In recent years, many workers have become engaged in the “gig” economy. You may think of gig workers as those who deliver take-out restaurant meals, walk dogs and drive for ride-hailing services. But so-called gig work seems to be expanding. Today, some nurses have become gig workers and writers in Hollywood who recently went on strike have expressed concerns that screenwriting is becoming part of the gig economy. There areRead More »Emil @ ZCPA explain how to being a gig worker comes with tax consequences

Profit fade can be a serious problem for construction companies. It’s not only a red flag for sureties and lenders, but also a negative indicator regarding the overall financial performance of the business. As the name suggests, profit fade simply means a decline in expected gross profits over the course of a project. There are many potential causes, including overly optimistic estimates, inaccurate job costs, unbillable change orders, unexpected job-siteRead More »Emil @ ZCPA gives you 5 tips for avoiding profit fade

The IRS recently released guidance providing the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA fundamentals An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered under a “high-deductible health plan.” In addition, a participant can’t be enrolled in Medicare orRead More »Emil @ ZCPA wrote: The IRS has just announced 2024 amounts for Health Savings Accounts

Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your retirement accounts. You generally must start taking withdrawals from your IRA, SEP, SIMPLE and otherRead More »ZCPA: 4 tax challenges you may encounter if you’re retiring soon

High inflation and rising interest rates are still affecting many businesses. For construction company owners, this means you’ll need to continue paying close attention to materials and labor costs. Keeping these dollar amounts in line calls for ongoing proactive measures. Be prepared for supply fluctuations When it comes to materials, manufacturing delays are often unpredictable. Short-staffing at facilities, labor disputes and natural disasters — just to name a few issuesRead More »Emil @ ZCPA explain how to use proactive measures to manage materials and labor costs

Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an independent contractor or an employee for federal income and employment taxRead More »Emil @ ZCPA tips: If you’re hiring independent contractors, make sure they’re properly handled

If you’ve successfully filed your 2022 tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. When will your refund arrive? The IRS has an online tool that can tell you the status of your refund. Go to irs.govRead More »Emil @ ZCPA: Questions you may still have after filing your tax return

Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction The net operating loss (NOL) deduction addresses the tax inequities that can exist between businesses with stable income and those with fluctuating income. It essentially lets theRead More »Emil @ ZCPA wrote: Use the tax code to make business losses less painful

If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications You can claim an itemized deduction for qualified medical expenses that exceed 7.5% of your adjusted gross income. You can also take tax-free health savings account (HSA),Read More »Emil @ ZCPA: The IRS clarifies what counts as qualified medical expenses

The IRS has historically considered construction a high-risk compliance industry because of its potential for cash transactions, underreported income and worker misclassification. What’s more, as the tax agency rolls into the future under new leadership, with improved technology and a boosted workforce, many business pundits are keeping an eye out for a rise in audit activity later this year or next. Being selected for an IRS audit can be stressful.Read More »Emil @ ZCPA explain how construction business owners can prepare for an IRS audit