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The federal law allows pass-through entities to report their income, losses, and deductions using a unique tax document that transfers the responsibility of paying taxes to individual partners or shareholders. While all these entities use Schedule K-1 to report their financial standings, the distribution varies depending on whether it is an S corporation, Trust, or business partnership. For...

Sponsorship and advertising can appear quite similar, and they both may have an important role in your business’s marketing strategy. The Internal Revenue Service defines each differently, however, understanding the IRS’ different definitions can help businesses and nonprofits when filing taxes. Official IRS Definitions of Advertising and Sponsorship The IRS defines both advertising and...

Running a small business is a challenging endeavor, with countless tasks that need to be managed daily. One of a small business owner’s most important responsibilities is ensuring payroll is handled correctly. From calculating wages to filing taxes, payroll is a complex process; mistakes can result in fines and other penalties. Knowing how to navigate payroll can help a small business owner stay...

When it comes to your finances, you can’t be too careful. That is especially true if you are running a business on the side or a busy professional with limited time. You need to know where your money is going and how to get the most bang for your buck. That’s why it’s important to work with a CPA firm. CPAs are financial experts who know what they’re doing and can help you keep track of your cash...

If you’re like most small business owners, you probably have a good idea of the big-ticket items like your home office and vehicle expenses. But what about those smaller write-offs that can save you money and help your bottom line? Many small businesses miss out on valuable tax deductions because they don’t know what’s allowed and what isn’t. So you may ask, are ATM fees tax deductible? Well, the...

Accounting for law firms can be intimidating, even for seasoned law practitioners. If you are like many, you’ve spent all your years sharpening your law skills, so accounting and bookkeeping are areas you are not skilled at. Still, you should employ legal accounting services to ensure your firm runs smoothly and you are on track with your growth goals. Why Legal Accounting Services? Ideally, all...

When planning your estate to transfer to heirs, you can choose between revocable and irrevocable trusts. It’s important to know the difference to understand if distributions from the trust are taxable to the beneficiary. Trusts are entities you set up to hold your assets during your lifetime and ensure they are used appropriately. Usually, the person that sets up a trust is known as a grantor....

A schedule K-1 is a commonly used Internal Revenue Service (IRS) tax form issued to individuals who have a beneficial interest in certain types of entities. If you’re the beneficiary of a trust or you have a trust as part of your estate plan, it’s important to understand your tax liability, including when you’re likely to receive a K-1 Trust Distribution Form and what to do with it. This simple...

Financial security is the cornerstone to achieving many of life’s goals – owning a house, retiring early, or taking a few years off work to travel and see the world. Learning how to be stable financially starts with financial literacy. The better you understand all aspects of money management, the better you’ll be at analyzing your income, debt, and expenses. So, if you’re looking to make better...

Trust funds can be a great way to provide ongoing support or to pass on wealth to spouses, family members, or charities while offering significant tax advantages to both the creator of the trust and the beneficiary. Many trusts can also avoid probate in the event of the creator’s death. But are trust funds taxable? Yes, they are, and here are the basic concepts you need to know about taxation...