Check out the articles and links below for useful information pertaining to Congress, the Internal Revenue Service, the Indiana Department of Revenue, and other items of interest.
Current News and Events
Insurance Claims May Require Financial Data - We Can Help
With many businesses suffering financially, many business owners may be brushing up on their lost profits and / or business interruption insurance policies. Many may be at the point of filing a claim, several others may not be there yet, but fear its coming. When filing claims under these types of policies, business owners may be unsure of how to project the financial data needed for these types of claims. They may be unsure of what the difference is between "actual" earnings and "reasonably expected" earnings. If you are needing assistance with gathering financial data for these types of insurance claims, call us. Our business valuation expertise can assist with these types of projections.
Unexpected Opportunity - Now May be the Time to Transfer Ownership of a Business
With all of the recent headlines about a declining stock market, economic turmoil due to business and industry shut downs, and Congressional stimulus packages to provide economic relief, you may think now is the worst time for any type of ownership transfer of a business. However, in certain circumstances, now be a great time. For some businesses, the succession plan may be transferring ownership to children or other close relatives or friends, and a lower business value would ease potential tax effects. In these circumstances, an economic downturn may provide the opportunity to transfer ownership and provide for more advantageous tax environments. If you have been considering transferring your ownership, but have been fearful of the tax burden it could create for your family or loved ones, contact us. Our business valuation expertise can help.
IRS and DOL Issue Initial Guidance for Certain Tax Credits and Paid Sick Leave
Please see the link below for initial guidance related to some new tax credits.
The SECURE Act and What it Means for Retirement
The Setting Everyone Up for Retirement Enhancement, or SECURE, Act was signed into law on December 20, 2019. This Act brings with it some sweeping reforms to retirement provisions. Many of the provisions went into effect on January 1, 2020. The following are among the key takeaways included in the Act:
Required minimum distributions (RMDs) now begin at age 72 (previously was 70 1/2)
Allows parents a penalty-free withdrawal from retirement accounts up to $5,000 within a year of birth or adoption for qualified expenses
IRA contributions can now be made beyond age 70 1/2
Part-time workers may now participate in their company's 401(k) plan (an "hours worked" requirement applies)
Small business owners may be eligible for a tax credit for starting a retirement plan
Please contact our office to discuss these change further and what it may mean for your individual tax situation or small business.
New W-4 Form Introduced
The IRS introduced another new W-4 form. Please check with your payroll provider if you need to change withholding amounts.
2021 Mileage Rates Issued
2020 mileage rates have been released. Beginning January 1, 2021, the standard mileage rates are 56.0 cents per mile for business use and 16 cents per mile for medical or moving. Mileage rates for charitable purposes remains at 14 cents per mile.
Qualified Business Income and Rental Properties
Among the provisions in the Tax Cuts and Jobs Act was a deduction known as the Qualified Business Income (QBI) deduction, which allows for a potential deduction of up to 20% of a taxpayer's QBI. Under current law, this deduction is still allowed for the 2020 tax year. For more information, be sure to speak to our office to determine what effect this may have on your specific tax situation.
Indiana Department of Revenue News
Indiana Department of Revenue Newsletter
Please click on the link below to read the latest tax bulletin from the Indiana Department of Revenue.
Local Income Tax Rates Change for 10 Counties
On January 1, 2021, local income tax rates changed for several Indiana counties. Click on the link below for the updated rates to be sure you're withholding at the right rates for you and your employees.