Understanding how much you can give your child tax-free involves navigating various gifting strategies, annual exclusion limits, and lifetime exemption thresholds that allow parents to transfer wealth efficiently to their children. For 2024, individuals can gift up to $18,000 per child annually without triggering gift tax reporting requirements, while married couples can combine their exclusions … Read more
Profit sharing is a compensation strategy that allows businesses to distribute a portion of their profits to employees, creating a direct link between employee performance and company success. This approach not only incentivizes employees to work harder but also fosters a sense of ownership and alignment with the company’s goals. Profit-sharing plans can vary widely … Read more
The U.S. Department of Labor (DOL) has implemented significant updates to overtime regulations under the Fair Labor Standards Act (FLSA), making millions of salaried employees eligible for overtime pay. As of July 1, 2024, the salary threshold for overtime eligibility increased to $43,888 annually ($844 per week), with a further increase to $58,656 annually ($1,128 … Read more
When considering the financial implications of purchasing an existing business, one of the crucial questions that arise is whether the costs associated with this acquisition can be classified as deductible start-up costs. Understanding the IRS guidelines on this matter is essential for business owners and entrepreneurs looking to maximize their tax benefits. According to the … Read more
Pastors are not fully exempt from taxes, but they do enjoy certain unique tax benefits and exemptions under federal law. The tax treatment of pastors is complex due to their dual tax status: they are considered employees for federal income tax purposes but are treated as self-employed for Social Security and Medicare taxes. This dual … Read more
GSTT does not necessarily require a physical gift to occur; it applies broadly to generation-skipping transfers, which may include direct gifts, trust distributions, or transfers at death. Understanding GSTT is essential for estate planning and compliance, as this tax is designed to prevent wealth from bypassing intermediate generations to reduce estate and gift tax liabilities. … Read more
FTB letters can be a source of confusion and anxiety for taxpayers in California, especially if you’re not quite sure what they mean or why you received one. For those who have received an unexpected letter from the Franchise Tax Board (FTB), understanding its content and significance is crucial. The FTB, California’s state tax agency, … Read more
As election seasons approach and political campaigns intensify, many individuals consider making donations to support their preferred candidates or causes. A common question that arises is whether these political contributions can be deducted on tax returns. This article will provide a clear answer to that question and offer additional insights into political donations and their … Read more
The Internal Revenue Service (IRS) provides various customer service options to assist taxpayers with their questions and concerns. Understanding the IRS customer service hours and available resources can help you get the support you need efficiently. This article outlines the current IRS customer service hours and provides guidance on how to best utilize their services. … Read more
In the southern region of the United States, Alabama provides its citizens with a monetary advantage via the homestead exemption. This tax relief measure is aimed at reducing the tax on property which in turn will encourage more people to engage in property ownership. It is now time to discuss the specifics of Alabama Homestead … Read more