“Tax Cuts and Jobs Act” Proposed Legislation and Its Impact on Our Clients

by Stephen G. Travis, Managing Principal

I spent time perusing the 429 page document released yesterday. Information and thoughts on how these proposals would impact our clients at KWC are below. I want to emphasize that taking any action on the proposed legislation at this point would most likely not be prudent. We saw what happened with the ACA (Obamacare) repeal, so it is entirely unknown what, if any, of these provisions will ever become the law of the land. But for CPAs it is interesting reading. (more…)

KWC’s Mike Wicks Named President of the Rotary Club of Alexandria, VA

KWC is proud to announce that our very own Mike Wicks has been named President of the Rotary Club of Alexandria, Virginia. Mike has served in other board positions and committees in the past and will lead the organization during its 90th anniversary year.

The full roster of 2017-2018 Rotary Officers and Directors is as follows:

President – Michael Wicks
President-Elect/Group A Club Administrative – Paul V. Anderson II
Vice President/Group B Club Service – Sharon Meisel
Secretary – Donna Wilson
Treasurer – Leon A. Duncan, Sr.
Past President – Thomas Roberts, Jr.
Sergeant-at-Arms – Peter Knetemann
Group C Club Membership – John Moorman
Group D Public Image – Ru Toyama
Group E Service Projects: Community – Danielle Everly
Group F Service Projects: International – Shahnaz Ahmed
Group G Foundation – Richard Morrison
ADN&CH Foundation – John Woods

To learn more about the Rotary Club of Alexandria, VA visit their website by clicking here.

Reclassifying Business Expenses as Constructive Dividends

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that’s helpful and appropriate for your business.

The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an examiner might claim that payments made by a corporation to a shareholder for personal items or that are above or below fair market value constitute “constructive dividends.” Reclassifying business expenses as dividends has adverse tax consequences, as a recent case demonstrates. (more…)

Why Partnership Tax Status May Sometimes Be Unwanted

Many business entities are set up as partnerships. Although there are legitimate reasons for some businesses to choose this structure, partnership status may be undesirable for certain activities involving more than one co-owner. (more…)

Generous Health Plan May Not Preclude HSA Contribution

If you’re covered by a qualifying high-deductible health plan, you can generally make annual deductible contributions to a tax-saving Health Savings Account. However, things can get tricky if you are married and your spouse has more generous coverage through his or her job. (more…)