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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...

A trust can be a valuable tool for estate planning and a variety of other purposes. However, when it comes to taxes for a trust, throwing a trust into the mix can sometimes create a bit of confusion. Whether you’re setting up a trust or you’re a beneficiary, it’s important to understand your potential tax liability. This quick guide provides an overview of the basics you need to know about...

If you’re a beneficiary, grantor, or trustee of an irrevocable trust, it’s important to understand the specifics of how trust disbursements work and who is liable for the taxes. Following, you’ll find a quick overview of the important details and a few examples for clarification. Taxation of Irrevocable Trust Disbursements When an irrevocable trust disburses funds, the trust takes a taxable...

The question of whether or not a beneficiary pays trust distribution taxes on the income received from a trust comes up quite often. The answer depends on your particular situation. In the sections below, we will explain the circumstances when you, as a beneficiary, must pay tax and when it’s not required. But first, let’s start with the basic definitions. What is a Trust? A trust is a legal...

One of the most common questions we hear about the administration of trusts is, “Are trust funds taxed?” Like so many other financial matters, the answer is, it depends. Many people get confused that the taxable income of trusts and trust income are not the same things. Typically, a beneficiary (and sometimes a trust itself) is subject to income tax. Income distributions are also subject to...

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....