Taxpayers using optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes should be aware of an updated set of rules. The updated rules reflect changes to certain deductible expenses resulting from the Tax Cuts and Jobs Act (TCJA).Continue reading

Taxpayers born before July 1, 1949, generally must receive payments from their individual retirement arrangements (IRAs) and workplace retirement plans by December 31.

Known as required minimum distributions (RMDs), typically these distributions must be made by the end of the tax year. The required distribution rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive Match Plans for Employees (SIMPLE) IRAs but not Roth IRAs while the original owner is alive. They also apply to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans.Continue reading

Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2020 are as follows:

401(k), 403(b), 457 plans, and Thrift Savings Plan. Contribution limits for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increase from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over increases from $6,000 to $6,500.

SIMPLE retirement accounts. Contribution limits for SIMPLE retirement accounts for self-employed persons increase in 2020 as well – from $13,000 to $13,500.

Traditional IRAs. The limit on annual contributions to an IRA remains at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions; however, if during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If a retirement plan at work covers neither the taxpayer nor their spouse, the phase-out amounts of the deduction do not apply.Continue reading

As a holiday present to America, Congress has finally come together to pass the SECURE Act, which includes some of the biggest changes to retirement law seen in decades. We are still processing this law, but here are some points to familiarize yourself with. If you believe any of these changes will impact you and you have questions, please contact your trusted tax advisor to discuss the consequences this law may have on your situation.Continue reading

Wheeler Accountants, LLP, headquartered in San Jose, CA., has joined CPAmerica, Inc., an accounting association of independent, certified public accounting firms that provides shared best practices, networking opportunities and access to expert resources for member firms. Wheeler Accountants, LLP, is the tenth firm to join the accounting association in 2019.

Founded in 1950, Wheeler Accountants, LLP, offers a full range of audit, accounting, taxation, consulting and compliance services to a wide variety of individuals and businesses; from high-net worth individuals running public companies to small business owners and individuals looking for financial and tax advice.

“We are thrilled to have been accepted into CPAmerica and have the chance to collaborate with the member firms,” said Matthew O. Wheeler, managing partner of Wheeler Accountants, LLP. “The alliance will offer additional national and international resources for our clients and staff. As our clients continue to grow and request additional services, CPAmerica will enable us to meet our clients’ needs, while maintaining our independence and focus here in Silicon Valley. We look forward to engaging with and becoming an active member of CPAmerica.”

As an exclusive association of independent CPA firms, CPAmerica provides opportunities for its members to continuously improve. CPAmerica is a member of Crowe Global, which has members in more than 750 offices in more than 130 countries and ranks among the top-10 global accounting networks.

“We have had an exciting year of growth and are happy to welcome Wheeler Accountants, LLP, to the CPAmerica community,” said Alan Deichler, president of CPAmerica. “They belong to a group that is determined to improve through sharing, where members support each other’s success through discussing best practices, sharing experiences and building professional relationships.”

Each firm undergoes a rigorous quality review prior to obtaining membership in CPAmerica. Only those firms with the highest standards in all practice areas are approved by the council of members. 

About CPAmerica, Inc.:

An accounting association made up of independent certified public accounting firms that built on four key goals: to continuously improve; to make more money; to strengthen relationships among member firms; and to bring prestige to firms both domestically and internationally. As a member of the eighth largest global accounting network Crowe Global, CPAmerica expands to over 200 independent accounting and advisory services firms in 130 countries, and has a combined firm revenue of $4.3 billion. Learn more about CPAmerica at www.cpamerica.org.

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If you’ve invested in Bitcoin and decide to sell you need to consider the impact of virtual currency transactions on your taxes. Here’s what you should know:

Background

Prior to 2014, there was no IRS guidance and many people did not understand that selling virtual currency was a reportable transaction. They may have found themselves with a hefty tax bill – money they were hard-pressed to come up with at tax time. Others were unaware that they needed to report their transactions at all or failed to do so because it seemed too complicated.Continue reading

With the end of the year fast approaching, now is the time to take a closer look at tax planning strategies you can use to minimize your tax burden for 2019.

General Tax planning Strategies

General tax planning strategies for individuals include postponing income and accelerating deductions, and careful consideration of timing-related tax planning strategies with regard to investments, charitable gifts, and retirement planning.Continue reading

A number of end-of-year tax planning strategies are available to business owners that can be used to reduce their tax liability. Here are a few of them:

Deferring Income

Businesses using the cash method of accounting can defer income into 2020 by delaying end-of-year invoices, so payment is not received until 2020. Businesses using the accrual method can defer income by postponing delivery of goods or services until January 2020.Continue reading

As the end of the year approaches, taxpayers should be reminded that business expense deduction for meals and entertainment have changed due to tax law changes in the Tax Cuts and Jobs Act (TCJA) of 2017. Until proposed regulations clarifying when business meal expenses are deductible and what constitutes entertainment are in effect, taxpayers should rely on transitional guidance that was issued by the IRS late last year.Continue reading

Certain energy-efficient home improvements can cut your energy bills and save you money at tax time. While many of these tax credits expired at the end of 2016, tax credits for residential and non-business energy-efficient solar technologies do not expire until December 31, 2021. Here are some key facts that you should know about these tax credits:Continue reading