Bonus Depreciation Phase Out and What it Means for Your Business

suited figures discuss business plans

At a glance The main takeaway: Bonus depreciation, a favorable, bipartisan-supported tax provision, is unlikely to be extended before December 31, 2022. While it’s not recommended to make large investments for the sake of a potential tax break, however, strategic investments should be top of mind for businesses. Impact on your business: Despite its popularity,…

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Inflation Tax Planning for Companies with Inventory

At a glance The main takeaway: Consumers and businesses alike are facing inflation not seen in decades, with companies often paying double-digit price increases to replenish inventories. This in turn requires them to raise their prices, leading to higher gross revenues and illusory profits. In certain situations, businesses can get temporary relief from the tax…

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U.S. Tax Planning Opportunities for Bona Fide Residents of Puerto Rico

At a glance: The main takeaway: There are several lucrative tax benefits and incentives available to certain U.S. taxpayers who relocate to Puerto Rico. Impact on taxpayers: Before relocating, it’s important for taxpayers to ensure and document that all U.S. and Puerto Rican requirements are met in preparation of any audit. Next steps: Consult with international tax specialists…

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Georgia Election to Pay Tax at the Pass-Through Entity Level

At a glance The main takeaway: Effective beginning the 2022 tax year, Georgia has joined many other states in allowing pass-through entities (PTEs), namely S corporations, partnerships and LLCs taxed as partnerships, to pay Georgia state income tax at the entity level. This legislation is intended to lessen the impact on individuals of the deduction limitation…

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Digital Asset Staking: Your Top Tax Questions, Answered

At a glance The main takeaway: A U.S. District Court case out of Tennessee calls into question the taxability of staking rewards — specifically, whether those rewards generate taxable income. Impact on your business: Taxpayers who engage in staking, mining or similar activities currently operate in a tax “limbo,” but that may change with the development of…

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The Pulse on the Economy and Capital Markets: Jan 17 – Jan 21, 2022

At a glance: The markets had another rough week as stocks declined 4% globally, and investors favor lower-risk assets. Investors continue to worry about inflation and how quickly the Fed will respond. The video game industry takes a giant leap towards the Metaverse as Take Two Interactive and Microsoft announce huge merger and acquisition deals.…

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