Determine a reasonable salary for a corporate business owner
Are you a corporate business owner? Make sure your compensation passes IRS scrutiny! Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. Contact our business advisors for guidance on setting or reviewing your compensation.
Members of the “sandwich generation” face unique estate planning circumstances
Members of the sandwich generation find themselves simultaneously caring for aging parents while supporting their own children. Not surprisingly, they face unique financial and emotional pressures. Consider these next steps to aid in these challenges. Contact our estate planning advisors to learn about additional estate planning techniques for your unique situation.
The “wash sale” rule: Don’t let losses circle the drain
If you make an ill-fated investment in a taxable account, you may be able to harvest a tax-saving capital loss by selling the losing stock. However, for federal income tax purposes, the “wash sale” rule could disallow your tax loss. Contact our tax advisors with questions.
Mine your nonprofit’s audit report for good suggestions
Even if your not-for-profit isn’t required to conduct annual audits, it’s a smart policy to adopt. In addition to encouraging transparency and reassuring donors, audits produce reports you can use to adjust policies and procedures for better, less-risky operations. Your executives and board members can also review audit reports and correct any deficiencies or weaknesses in internal controls. Contact our nonprofit advisors for help with audits and internal controls.
An education plan can pay off for your employees — and your business
Your business can set up a Sec. 127 educational assistance plan to give each eligible employee up to $5,250 a year, free from federal income tax and payroll tax. The plan must meet certain requirements. Contact our tax advisors to learn more.
Understanding the “step-up in basis” when inheriting assets
If you inherit assets, they often come with a valuable tax benefit called the step-up in basis. Basis is what the owner paid for an asset, with some possible adjustments. At death, many capital assets (such as stocks, real estate and business interests) are generally stepped up to their fair market value (FMV) as of the date of death. The heir’s basis is the FMV, erasing the tax on any gain accumulated during the deceased person’s life. Contact our tax advisors with questions.
Nonprofits: Promoting good governance with a board policy
Creating a board governance policy can provide directors with a framework to make ethical decisions, take appropriate actions, and handle real or potential conflicts. You might want to consult financial and legal advisors if your board is unsure what to do in a particular situation. Contact our nonprofit advisors for more information on governance.
The GST tax and your estate plan: What you need to know
To share wealth with grandchildren, great-grandchildren or other remote generations, special planning may be required to keep generation-skipping transfer (GST) taxes to a minimum. Contact our estate planning advisors with questions.
Three SEK Leaders Named Best-In-State CPAs for 2025 by Forbes
We’re proud to celebrate three SEK Members who were recently named to the Forbes 2025 list of Best-In-State CPAs – two in Pennsylvania and one in Maryland! To view the complete list of honorees, visit:
Simple retirement savings options for your small business
If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE).