Four Cost-Cutting Strategies to Boost Business Profits
Many businesses aim to increase profitability by boosting sales of products and services. However, higher sales volumes don’t always lead to higher net profits, especially if your expense structure is inefficient. This is why it’s essential to focus on expenses as well as sales to improve profitability. Conducting a formal expense review can be a […]
Growing Your Business with a New Partner & Key Tax Considerations
Bringing a new partner into your business is a significant step, and it comes with various financial and legal implications. To illustrate, let’s consider a scenario: you and your partners decide to admit a new partner who will acquire a one-third interest in the partnership through a cash contribution. Assume that your basis in your […]
Navigating Alternative Investments: A Tax-Savvy Approach for Nonprofits
Considering alternative investments for your not-for-profit entails a thorough evaluation of potential risks and rewards, especially in light of their distinct tax implications. While these investments often boast higher long-term performance compared to traditional securities, they present nuanced considerations that demand careful attention. Here’s a comprehensive overview to guide your decision-making process. Complex Valuation Dynamics […]
Navigating Partner Business Expenses: Guidelines and Tax Implications
It’s common for partners to cover expenses related to their partnership’s business operations, particularly in service-oriented partnerships like architecture or law firms. These expenses might include entertaining clients, transportation for meetings, professional publications, continuing education, or home office costs. But how are these expenses treated for tax purposes? Let’s break it down. Reimbursable Expenses: Partners […]
Secure Your Nonprofit by Safeguarding Volunteers from Legal and Tax Risks
As a leading tax firm specializing in nonprofit organizations, we understand the critical importance of comprehensive risk management for not-for-profit leaders. While you diligently protect your facilities, assets, staff, and clients, have you considered the potential legal and tax liabilities facing your volunteers? Despite the protections offered by the federal Volunteer Protection Act of 1997, […]
Protecting Nonprofit Finances: Safeguarding Against Fraud Risks
When it comes to financial fraud, nonprofits often operate on thin margins, making every dollar crucial to their mission. While it’s encouraging that nonprofits typically experience lower median losses from fraud compared to for-profit entities, this doesn’t diminish the importance of vigilance. In fact, with limited resources at their disposal, nonprofits can ill-afford any financial […]
Maximizing Tax Benefits: When to Rethink Income and Deductions for Your Business
While the typical strategy for businesses is to defer taxable income to subsequent years and expedite deductions in the current year, there are instances where an alternative approach can be advantageous. As a leading tax firm, we guide businesses to navigate these complex scenarios effectively. So, why might a business opt for this contrary strategy, […]
Seizing the Opportunity: Why Your Business Should Embrace Retirement Plans Now
If your business hasn’t embraced a retirement plan yet, now might be the perfect opportunity. The current retirement plan regulations offer generous tax-deductible contribution allowances. For instance, self-employed individuals can establish a SEP-IRA and contribute up to 20% of their self-employment income, capped at $69,000 for 2024 (up from $66,000 in 2023). If you’re an […]
Unlocking Savings: Navigating Sales Tax Exemptions for Manufacturers in Connecticut
As a manufacturing company, you’re likely familiar with the sales tax exemptions available for machinery and tools used in your production process. However, did you know that there are also exemptions for utilities? Considering utilities often represent a significant cost within manufacturing, understanding, and leveraging this exemption can lead to substantial savings for eligible businesses, […]
Maximizing Tax Savings: Coordinating Sec. 179 Deductions with Bonus Depreciation
At Accavallo & Company, LLC we understand the importance of optimizing current year depreciation write-offs for businesses with newly acquired assets. To achieve this, businesses can leverage two significant federal tax incentives: the first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. When utilized correctly, these deductions can potentially allow businesses to write off […]
