The COVID pandemic prompted numerous temporary changes to the tax laws for 2020 and 2021. From Economic Impact Payments, penalty-free IRA distributions and the expanded child tax credit to Employee Retention Credits and credits for paid
leave, taxpayers had ample areas to make mistakes when completing their tax returns — on top of the usual annual tripwires. Here’s what you need to know if you’re considering amending your 2020 or 2021 federal income tax return. (more…)

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022. The adjustment reflects rising costs at the gas pumps this year. It’s accompanied by a hike in the standard mileage rate for medical expenses for all taxpayers and moving expenses for active-duty military personnel (IRS Announcement 2022-13). (more…)

We are pleased to announce the promotions of Emily Crimmins and Samantha Doe to Principal with the firm.

“Both Emily and Samantha bring extensive tax expertise, as well as top-quality commitment to our clients’ success,” said Connie Hammell, Managing Principal of KWC. “These traits make them ideal candidates to help guide the firm as we continue to grow.”

Emily Crimmins is a Principal in KWC’s Business Services Group. She provides consulting, tax planning, and compliance services for closely held businesses and their ownership groups. Emily has experience in many industries including marketing and advertising, government contractors, professional services, and real estate.

Additionally, Emily is a participant in an emerging leaders program consisting of future leaders from regional firms across the Southeast.

Emily is a graduate of James Madison University. Outside of KWC, Emily enjoys traveling with her friends and family, attending concerts, reading novels, and cheering on her favorite sports teams (the Virginia Tech Hokies and the New England Patriots).

Samantha Doe is a Principal in the firm’s Business Services Group. She provides consulting, tax planning, and compliance services for closely held businesses and their ownership groups. Samantha has experience in many industries including professional services, real estate, and specialty trade contractors.

Samantha is a graduate of George Mason University. Outside of KWC, Samantha enjoys spending time with her family. She also likes to travel to tropical places and lists visiting beautiful beaches as one of her favorite things to do. When she is not traveling, she enjoys exploring local cities in the area.

Are you interested in setting up a private foundation?

With this approach, you make contributions to a foundation and get a charitable tax deduction just as you would with any qualified organization. Then, as the director, you decide which charities you want to make distributions to so you retain control of the assets. (more…)

Real estate markets are still surging in many parts of the country, especially in some popular travel destinations. If you’re thinking about selling a vacation home that’s increased dramatically in value, you might be rightly concerned about the tax hit. While the limited federal income tax gain exclusion break is still on the books, it’s only available for the sale of a principal residence. (more…)

Court Determines that an Activity Was Engaged in for Profit

Taxpayers who are in business to make a profit can generally deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, it may deem an activity to be a hobby with a limited ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. (more…)

The general rule for retaining federal tax records is three years. That’s because the statute of limitations for the IRS to audit your tax return is typically three years. The statute of limitations starts on the later of 1) the due date for your tax return, or 2) the date on which you file your taxes. (more…)

Remember the excitement of the last day of the school year? Many adults have fond childhood memories of being off from school for the summer. But summer break isn’t just for kids. Here are nine potential summertime tax breaks for grown-ups — including many that allow small business owners and individuals to combine tax savings with summertime fun. (more…)

Businesses that need real estate to conduct operations, or otherwise hold property, traditionally have put the title to the property in the name of the business itself. But owners are increasingly rethinking this approach. Many are recognizing that any short-term benefits may be outweighed by the tax, liability and estate-planning advantages associated with separating real estate ownership from the business. (more…)

When it comes to selling your business, you must consider the buyer’s perspective — not just your own — to get the deal done. Both sides will require certain due diligence procedures, which take time and patience to get through. Here’s what to expect, including some tax considerations. (more…)