Posts by Cardell McKinstry
Aprio’s End of Year Tax Update
December 2022 Dear Reader, Aprio is privileged to offer our year-end tax planning guide for your consideration and use. Year-end tax planning is a consistent theme across the accounting world; many business and investment firms churn out annual tax-planning recaps. Generally, these communications consist largely of a stream of reminders to complete the same tax-planning…
Read MoreQualifying for Section 1202: The IRS Provides Clarity on a Taxpayer’s Eligibility
At a glance The main takeaway: In a Chief Counsel Memo, the IRS concluded that a taxpayer’s business of facilitating rental property agreements between lessors and lessees should be classified as brokerage services thus deeming them ineligible for Section 1202. Impact on your business: For a taxpayer to receive the incentives that come with Section…
Read MoreThe Good News About Build Back Better Act (BBBA) Not Moving Forward
The Full Story The BBBA eliminates a permitted exclusion in the Net Investment Income tax provisions by subjecting all trade or business income of individuals with earnings over $400,000 (individual) or $500,000 (married couples) to the 3.8% net investment income tax—except to the extent already subject to self-employment tax. This is an unfavorable change for…
Read MoreWhat’s All the Talk About a $10 Million Tax-Free Capital Gain?
Shareholders in qualified small businesses (“QSBs”) may be eligible for a 100% tax exclusion due to an often-overlooked section of the Internal Revenue Code (“IRC”): Section 1202. This benefit can be critical in attracting capital investment or talented employees. Particularly with startups and technology companies, there is a huge potential advantage to founding shareholders, early…
Read MoreIRS Declines to Extend Due Date for First-Quarter Estimated Tax Payments
At a glance: The IRS has confirmed its extension of the filing due date for 2020 individual income tax returns to May 17, 2021. This extension also applies to the due date for making 2020 contributions to an individual IRA, Roth IRA, health savings account (HSA), Archer medical savings account (MSA) and Coverdell education savings…
Read MoreAprio ESOP Services
Tax Reform Could Alter Your ESOP Strategy
Employee Stock Ownership Plans (ESOPs) have offered a tax-advantaged exit strategy for privately-held business owners since 1974, but Congress recently gave ESOP sponsors reason to take a fresh look at their plans. Specifically, two provisions of the Tax Cuts and Jobs Act (TCJA) that took effect this year have potentially unfavorable implications for the cost…
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