Tax and Accounting Desk

Many homeowners across the country have seen their home values increase recently. According to the National Association of Realtors, the median price of homes sold in July of 2021 rose 17.8% over July of 2020. The median home price was $411,200 in the Northeast, $275,300 in the Midwest, $305,200 in the South and $508,300 in the West. Be aware of the tax implications if you’re selling a home or you sold one in 2021. You may owe capital gains tax and net investment income tax (NIIT).

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Continue Reading Will You Owe Tax When Selling a Home?

Jen Lemanski: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m here with Jen Edmiston, an audit senior manager and a member of our employee benefit plan audit team. Jen, welcome to the Playbook.

Jen Edmiston: Thanks for having me.

Jen Lemanski: So EBPs… I know you get a ton of questions, but you know, one thing that I’m wondering is when you’re discussing 401(k) plans, you hear a lot of reference to plan documents and adoption agreements. Can you help the audience understand a little bit more about how these items relate to the operations of a 401(k) plan?

Continue Reading The Importance of Your Company’s 401(k) Plan Documents

Disclaimer: The information discussed by Norbert in this video applies to the U.S. only and does not relate to Canadian audits.

Russ: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Russ Capper, and I’m here with Norbert Czypionka. Not really here because you’re actually in Calgary and I’m in Houston, but he’s a Senior Manager with Joint Venture Strategic Advisors. Norbert, welcome to the Playbook.

Norbert: Thanks for having me, Russ.

Russ: So, Norbert, tell us what you do with JVSA.

Norbert: I have a few hats that I wear at JVSA. I am Senior Manager, and I’m responsible for all the revenue style type audits. I actually perform audits, I do training, client engagements. I really do a lot of different things on a day-to-day basis, and it’s a very exciting and it seems to be a growing industry and so forth. So, it keeps me challenged all the time.

Russ: Okay. So, you shouldn’t have trouble at all answering this question. What are revenue audits?

Continue Reading An Overview – Revenue Audits, RADE and Net Revenue Interests

You might think that artificial intelligence (AI) is just about using computers to perform complex tasks that otherwise would require human intelligence. That’s part of it. But several technologies fall under the AI umbrella, including machine learning, natural language processing (NLP) and robotic process automation.

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Here’s how tools such as these can help not-for-profits cut costs and achieve mission-critical objectives.

Continue Reading The Benefits of AI Technology for Your Not-for-Profit

As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or gift tax. The exclusion amount for 2021 is $15,000.

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The annual exclusion covers gifts you make to each recipient each year. Therefore, a taxpayer with three children can transfer $45,000 to the children every year free of federal gift taxes. If the only gifts made during a year are excluded in this fashion, there’s no need to file a federal gift tax return. If annual gifts exceed $15,000, the exclusion covers the first $15,000 per recipient, and only the excess is taxable. In addition, even taxable gifts may result in no gift tax liability thanks to the unified credit (discussed below).

Note: This discussion isn’t relevant to gifts made to a spouse because these gifts are free of gift tax under separate marital deduction rules.

Continue Reading Annual Exclusion for Year-End Gifts

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take.

a pier on a stormy cloudy day with rough waves in the water; image used for blog post about casualty loss tax deduction

What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, fire, act of vandalism or a terrorist attack.

Continue Reading Claiming Casualty Loss Tax Deduction in Certain Situations

Accountable plans reimburse employees for work-related expenses free of federal income and employment taxes. So reimbursement payments aren’t subject to withholding from staffers’ paychecks. Your not-for-profit also benefits because the reimbursements aren’t subject to the employer’s portion of federal employment taxes.

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Most prospective employees probably won’t accept a job based on the availability of an accountable plan. But offering one can help you retain valuable workers who submit frequent reimbursement requests.

Continue Reading How Accountable Plans Help Your NFP Staff

Jen: This is the PKF Texas – Entrepreneur’s Playbook®, I’m Jen Lemanski, and I’m here with Kelly McDonald, an audit manager and a member of our employee benefit plan audit team. Kelly, welcome to the Playbook.

Kelly: Good to be here.

Jen: So, I know there’s a lot of ins and outs with EBPs, and so one question that I have is, how can third-party providers help companies with fiduciary responsibilities in relation to their retirement plans?

Continue Reading Your Retirement Plan, Third-Party Providers and You