Under the American Rescue Plan (ARP), the IRS plans to lower the Form 1099-K reporting threshold for third-party platform payments. The new threshold was set to be $600 and was originally intended to start in 2023. However, due to difficulty with these reporting requirements, the IRS has announced that the start of this new rule is delayed and will be rolled out using transitional years. The current threshold for reporting for third-party settlement organizations starts at $20,000 or 200 transactions depending on which occurs first. At that point, the third-party settlement organizations must ..read more

The mansion tax in California went into effect on April 1, 2023. The mansion tax is a form of property tax that is imposed on high-value residential properties. These properties are typically above a certain threshold value. This tax is generally designed to target luxury homes, those that are typically referred to as “mansions,” to get additional revenue for government services or to diminish wealth inequality. Properties exceeding a specific threshold are subject to the tax. The tax rate often increases as the property value rises. These thresholds and rates vary depending on location and ju ..read more

The Dirty Dozen is a list that the IRS compiles of the most common scams that taxpayers might come across. Taxpayers might come across these scammers at any time of the year but it is most popular during the tax season. As email and text scams persistently target taxpayers, the IRS and its Security Summit partners emphasized the importance of remaining alert against these threats. Scammers and identity thieves employ various tactics, such as luring recipients into clicking on untrustworthy links, sharing personal and financial details, or downloading disruptive software onto their devices ..read more

The Corporate Transparency Act (CTA) was passed in 2021 but did not come into effect until January 1, 2024. It is important to note that nonexempt entities that exist before the effective date do not need to adhere to their reporting obligations until December 31, 2024. The main objective of the CTA is to prevent illicit actors from concealing or profiting from their unlawfully acquired assets through entities like shell companies. To achieve this goal, nonexempt entities are required to disclose information regarding their "beneficial ownership" to the FinCEN BOSS database. It is crucial to h ..read more

Under the Biden-Harris Administration, the United States has witnessed a significant surge in business formation, with 16 million new business applications recorded since their term began. This marks an 86% increase compared to the average annual growth rate before their administration. Moreover, there has been a substantial increase in the number of private establishments. Small businesses have played a crucial role in the job creation, adding 7.2 million jobs from 2021 to 2023, particularly benefiting women and minority entrepreneurs. Black and Latino business ownership has seen remarkable g ..read more

The real estate industry is going through a transformation as the National Association of Realtors changes its commission structures. Traditionally, sellers covered both the listing and buyers' agents' commissions, amounting to around 5% to 6%. Critics argue that this percentage inflated home prices and limited competition. In July, pending court approval, the National Association of Realtors agreed to a landmark settlement to eliminate this commission. This new rule doesn’t allow listings that describe how much the buyers’ agents are getting paid. In addition, this new rule requires a buyer b ..read more

In Illinois, discerning whether an individual is an employee or an independent contractor carries significant implications for legal rights, benefits, and tax obligations. Let's delve into the distinction between the two and why it matters.   What's the Difference? Employees typically operate under the direction of an employer, receive regular paychecks and benefits, and utilize company-provided equipment. On the flip side, independent contractors enjoy greater autonomy in how they execute their work, are compensated per project or task, and typically utilize their tools and resources. Th ..read more

Personal liability refers to the legal responsibility of individuals for their actions or obligations. In the context of owning a business, it means that you, as the business owner, can be held personally responsible for certain debts, legal claims, or obligations of the business. This means your personal assets, such as your home, savings, or investments, could be at risk if the business faces financial or legal troubles. Scenarios Where Personal Liability Comes into Play: Sole Proprietorship: If you operate as a sole proprietorship, there is no legal separation between you and your bus ..read more

As a business owner, your plate is undoubtedly full. From managing day-to-day operations to overseeing finances and fostering growth, the demands of running a business can be all-consuming. In the hustle and bustle of entrepreneurship, it's far too easy to become immersed in the daily grind, leaving little time or energy to focus on the structural components that underpin your business's long-term success. Yet, amidst the flurry of activities, it's crucial not to overlook one critical aspect: liability management. Business owners often find themselves caught off guard by unforeseen legal chall ..read more

In 2017, the National Federation of Independent Business (NFIB) collaborated with Congress to enact significant tax relief measures for small businesses. The main change to small business tax measures is in Section 199A. Section 199A is known as the 20% Small Business Deduction. This deduction is limited to 20% of taxable income. However, there are net income limitations to this deduction. There are also specific service trades or businesses (SSTBs) that may get a partial deduction from their income. According to the IRS, there are the income limitations for the Qualified Business Income deduc ..read more