Compass CPA, P.C.

State Tax Credits for the West Coast

image with title State Tax Credits for the West Coast to BOLO (Be On the Lookout)

From California to Washington and all the way up to Oregon, each state has its own set of tax credits aimed at stimulating economic growth, promoting innovation, and fostering sustainable practices. So whether you’re a resident, an entrepreneur, or simply curious about the economic incentives on the West Coast, this comprehensive guide will provide insights […]

A Guide to Year-Round Tax Preparation

The image shows an infographic displaying a graphic with five icons representing the five guides for tax preparation: setting up your system, consistent record-keeping, proactive tax planning, mid-year check-in, and end-of-year preparation. Each icon is labeled with its respective guide.

Tax season can be a stressful and overwhelming time for many individuals and businesses. You probably have also been exhausted from filing your taxes for the year! Now it’s time to leave the headache behind and make things easier for your next tax season so you don’t have to struggle with the same problem you […]

How to Qualify for and Claim the R&D Tax Credit

Image: How to Qualify for and Claim the R&D Tax Credit.

Innovation and technological advancement within businesses are encouraged by the government by giving valuable incentives such as the Research and Development (R&D) tax credit. This credit allows eligible companies to offset a portion of their research-related expenses against their tax liabilities, effectively reducing the amount of taxes owed. By leveraging this incentive, businesses can foster […]

How Cryptocurrency Taxes Work

A visual representation of cryptocurrency taxation, featuring symbols of Bitcoin and Ethereum along with tax-related icons.

Cryptocurrency taxation complexities arise from their treatment as property by tax authorities, with tax implications varying by countries. Taxable events include selling, exchanging, and using cryptocurrencies for purchases. Holders are liable for short-term and long-term capital gain taxes. Accurate record-keeping is essential for tax compliance and reporting on tax forms. Professionals can be sought for guidance. Tax liabilities can be minimized by holding cryptocurrency long-term, offsetting gains with losses, timing sales, claiming mining expenses, retirement investments, and charitable giving.

10 Common Tax Mistakes Small Business Owners Make

10 Common Tax Mistakes that Small Business Owners Make

This article highlights the importance of proper tax planning for small businesses and the common pitfalls to avoid. These errors include inadequate records maintenance, overlooking eligible deductions, underestimating estimated tax payments, mishandling employment tax deposits, filing taxes late, mixing business and personal expenses, misclassifying employees as independent contractors, choosing incorrect accounting software, and avoiding seeking professional tax advice. The article emphasizes the role of comprehensive tax planning and professional consultancy services to remain compliant and financially sound.

Basic Tax Differences for Each Entity

Discover the key tax differences that define each entity and the distinct paths that businesses and individuals take to navigate the ever-evolving tax landscape.

This article provides comprehensive insight into the different types of business structures and the corresponding tax implications. Key factors in selecting an appropriate business structure include legal liability, tax consequences, funding and growth potential, management, succession, and credibility. The article explores the ins and outs of Sole Proprietorships, S Corporations, C Corporations, and Partnerships. It encourages new business owners to seek professional advice when choosing a business structure.

Three Things You Should Look For When Hiring A Tax Professional

Three Things You Should Look For When Hiring A Tax Professional

The article discusses the vital role of tax advisors in helping individuals navigate the intricate world of taxes. It lists benefits of seeking expert tax advice, including maximizing tax benefits, navigating complex situations, and providing audit support. Key qualities to consider when hiring a tax expert include relevant qualifications, legitimate experience, and proactive communication. It also emphasizes the importance of maintaining client confidentiality, prompt response to inquiries, and year-round availability. The article concludes by suggesting critical questions to ask when hiring a tax professional.

Understanding Restricted Stock Units (RSUs): A Guide to Tax Planning and Reporting

Understanding the concept of Restricted Stock Units (RSUs), a form of equity compensation that companies issue to employees, and their potential tax implications.

Restricted Stock Units (RSUs) are equity compensation that companies grant employees, typically based on performance or length of service. While these shares always retain some value, they do not confer voting rights or dividends until vested. Employees might have to pay taxes upon vesting, even if they don’t sell their shares. The value of RSUs and related tax implications may fluctuate with the company’s share price. Professional financial advice may be beneficial for managing RSUs effectively.

Foreign Earned Income Exclusion for U.S Expats

Unlocking Financial Benefits: Illustration depicting the Foreign Earned Income Exclusion, a valuable tax provision for U.S. ex-pats, providing financial advantages and opportunities for Americans living abroad

The Foreign Earned Income Exclusion (FEIE) is a significant feature in the US tax code, offering tax advantages to US citizens or resident aliens working overseas. Qualified people can deduct a specific amount of their foreign-earned income from their federal income taxes in the U.S. Eligibility for it includes requirements like establishing bona fide or physical residence abroad. The FEIE eliminates or reduces the US tax liability of expats and avoids double taxation on income taxed in another country. Expats file IRS Form 2555 to obtain this tax benefit.

Understanding Health Insurance for S Corporation Owners

Understanding Health Insurance for S Corporation Owners

S Corp owners enjoy numerous tax advantages, but health insurance can be complex. Despite this, health insurance is crucial for financial stability and quality healthcare access. S Corporation owners cannot have the same benefits as other employees, but can deduct the cost of health insurance in certain circumstances. Adherence to IRS regulations is essential, as is professional guidance. Health insurance considerations include deductions, premium payments, health reimbursement arrangements, fringe benefits, and personal income tax deductions.