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Offering summer job opportunities? Double-check child labor laws
- May 03, 2022
- By Dukhon Tax
- In Employment
Spring has sprung — and summer isn’t far off. If your business typically hires minors for summer jobs, now’s a good time to brush up on child labor laws. In News Release No. 22-546-DEN, the U.S. Department of Labor’s Wage and Hour Division (WHD) recently announced that it’s stepping up efforts to identify child labor violations in the Salt Lake…
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Once you file your tax return, consider these 3 issues
- Apr 29, 2022
- By Dukhon Tax
- In Business Taxes
The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So, you can take a customer out for…
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Fully deduct business meals this year
- Apr 26, 2022
- By Dukhon Tax
- In Business Taxes
The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So, you can take a customer out for…
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AI for small to midsize businesses isn’t going away
- Apr 22, 2022
- By Dukhon Tax
- In Business
Artificial intelligence (AI) has made great inroads into certain sectors of the U.S. economy. However, it hasn’t reached many small to midsize businesses (SMBs) in a major way … yet. In 2021, AI analysis firm Unsupervised published a survey of 520 SMB owners that found 48% of them still found AI too cost prohibitive. Forty percent said their businesses lacked…
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Tax considerations when adding a new partner at your business
- Apr 19, 2022
- By Dukhon Tax
- In Retirement
Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are sufficient so that the decrease…
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Establish a tax-favored retirement plan
- Mar 31, 2022
- By Dukhon Tax
- In Retirement
If your business doesn’t already have a retirement plan, now might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $61,000 for 2022. If you’re employed by…
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When inheriting money, be aware of “income in respect of a decedent” issues
- Mar 29, 2022
- By Dukhon Tax
- In Capital Gains, Impact on Taxes, Income Tax, Individual Tax
Once a relatively obscure concept, “income in respect of a decedent” (IRD) may create a surprising tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there may be ways to minimize or even eliminate the IRD tax bite. Basic rules For the most part, property you inherit isn’t included in your…
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Are you ready for the 2021 gift tax return deadline?
- Mar 24, 2022
- By Dukhon Tax
- In Affordable Care Act, Business, Business Taxes, Financial Planning
If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2021 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who must file? The annual gift tax exclusion has increased in 2022…
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There still may be time to cut your tax bill with an IRA
- Mar 22, 2022
- By Dukhon Tax
- In Affordable Care Act, Business, Business Taxes, Financial Planning
If you’re getting ready to file your 2021 tax return, and your tax bill is more than you’d like, there might still be a way to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until the April 18, 2022, filing date and benefit from the tax savings on your 2021 return.…
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Business owners, lean into sales staff retention
- Mar 18, 2022
- By Dukhon Tax
- In Affordable Care Act, Business
Although there have been some positive signs for the U.S. economy thus far in 2022, many businesses are still reeling from last year’s “Great Resignation.” This trend of a historic number of workers voluntarily leaving their jobs, combined with the difficulty of hiring new employees, didn’t spare sales teams. However, one could say that the Great Resignation only threw gasoline…