It’s possible (but not easy) to claim a medical expense tax deduction
Can you deduct your out-of-pocket medical costs on your tax return? It depends. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical costs are deductible only if you itemize, which means that your itemized deductions must exceed your standard deduction. Eligible costs include: hospital bills, health insurance premiums, eyeglasses, hearing aids, most dental work, prescriptions, smoking-cessation programs and some costs of transportation to get to and from medical appointments. Contact the CPA's and business tax advisors at SEK to asses if you can claim a deduction, for more tax tips or to answer any of your tax questions.
SEK announces Manager, Supervisor, Senior, and Marketing promotions
The Members are pleased to announce the following Manager, Supervisor, Senior Staff, and Marketing promotions effective January 1, 2024:
Nonprofits: When are sponsorship and advertising payments subject to tax?
Sponsorship and advertising can provide a real boost to your not-for-profit’s income. However, if sponsors or advertisers receive a “substantial benefit” or if providing benefits isn’t a related business activity, you may owe unrelated business income tax (UBIT). If you’re seeking sponsors or advertisers for your nonprofit and aren’t sure what’s taxable, contact the CPA's and business tax advisors at SEK for tax tips and tax questions.
7 Tips for using QuickBooks online in 2024
QuickBooks Online was built for small businesses. You don’t have to be experts in accounting or technology. QuickBooks Online simplifies the complex process of double-entry accounting, using understandable language and a simple, easy to navigate user interface.
Defer a current tax bill with a like-kind exchange
If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Like-kind exchanges can be an attractive tax-deferred way to dispose of real property if you anticipate a large tax bill and meet the requirements. Contact the CPA's and business tax advisors at SEK if you have tax questions or for more tax tips.
Don’t overlook taxes when contemplating a move to another state
When you retire, you may want to move to another state, perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. You should also consider property and sales taxes, as well as any state estate taxes. We can answer any questions and file required tax returns. Contact the CPA's and business tax advisors at SEK for your tax questions, tax updates and more tax tips.
The standard business mileage rate will be going up slightly in 2024
The optional standard mileage rate used to calculate the deductible cost of operating a vehicle for business will be going up slightly in 2024, by 1.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents. The standard rate is useful if you don’t want to keep track of actual vehicle-related expenses. But you still must record certain information, such as the mileage, dates and destinations of trips. Contact the CPA's and business tax advisors at SEK for more financial advice, tax tips and tax updates.
Nonprofits: Using the personal touch for last-minute fundraising
As 2023 hurtles toward Dec. 31, your not-for-profit probably is fully engrossed in last-minute fundraising. One of the most effective year-end strategies is to have board members reach out to family, friends and professional contacts. Board members should “humanize” their request with personal stories illustrating why they support your nonprofit’s mission. Contact the CPA's and business tax advisors at SEK with questions about fundraising and other tax tips.
Court awards and out-of-court settlements may (or may not) be taxed
Monetary awards and settlements are paid for many reasons. By law, individuals can exclude from gross income damages that are received on account of personal physical injury or physical sickness. Contact the CPA's and business tax advisors at SEK for tax tips, financial guidance and more questions!