Estate and Gift Taxes – Plan Now for Reduced Exemption in 2026
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
6d ago
For the past five years, taxpayers have enjoyed historically high gift and estate tax exemptions, thanks to the Tax Cuts and Jobs Act of 2017. This legislation doubled the exemption from approximately $5.5 million to $13.61 million per person (adjusted for inflation) in 2024. The annual gift exemption also increased to $18,000 per donee in 2024. This substantial exemption has allowed individuals and families considerable flexibility in their estate planning. Couples can effectively combine their exemptions, enabling them to gift up to $27.22 million in 2024, either during their lifetimes or at ..read more
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The Benefits of Outsourced Accounting
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
2w ago
    In today’s business environment, companies are constantly seeking ways to optimize operations and enhance efficiency. One strategy gaining prominence is outsourcing, particularly accounting functions. Outsourcing accounting services can offer a myriad of benefits, revolutionizing a business’s financial landscape. Firstly, outsourcing allows companies to tap into a pool of skilled professionals without the burden of hiring and training in-house staff. This saves time and reduces the costs associated with recruitment and onboarding. Additionally, outsourcing provides access to cut ..read more
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$1 Billion in Unclaimed Property Held by the Alabama Treasury
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
3w ago
We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the State of Alabama. In 2023, Alabama returned $50.7 million to residents, according to Alabama State Treasurer Young Boozer. These assets may be in the form of cash, stocks, uncashed checks, utility deposits, bonds, insurance benefits, or even valuabl ..read more
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Alabama Business Privilege Tax Changes for 2024 
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
1M ago
Alabama House Bill 391 reduced the minimum state business privilege tax in 2023 from $100 to $50.   Beginning in 2024, businesses that are subject to the minimum tax ($100 or less) are completely exempt from paying the tax and filing a Business Privilege Tax Return (BPTIN/CPT/PPT)  This means many single-member entities will no longer be required to file. One caution – just because you paid the minimum in 2023 does not mean 2024 will be the same. Changes in the income and net worth of the entity may result in an assessment in excess of the minimum tax. The rates range from $.25 ..read more
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Interpreting Financial Statements: The Story Behind the Numbers
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
1M ago
Financial statements serve as a window into the health and performance of a business, offering valuable insights for investors, analysts, and stakeholders. The statements, including the income statement, balance sheet, and cash flow statement, provide a comprehensive view of a company’s financial position (and health). Let’s dive into what these statements can reveal: Income Statement: The Pulse of Profitability The income statement lays out a company’s revenues, expenses, and profits over a specific period. Analyzing this statement helps gauge the profitability and operational efficiency o ..read more
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Update on the CPA Profession
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
1M ago
When talking with clients, I always like to know how their business is going. I love to hear about everything: their team, sales, challenges, etc. When asked the same question, I usually respond, “Business is great, and we’re looking for more.” However, one of the accounting profession’s biggest challenges is the need for more people to do the work. Specifically, there is a real need for more incoming CPA candidates to replace those retiring and to handle increased demand.  Let’s look at some statistics:  There were 672,587 actively licensed CPAs as of September 1, 2023.   ..read more
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Stepped Up Basis – What is it and Why it’s Important
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
2M ago
The stepped-up basis applies to assets inherited at someone’s death. The IRS resets the asset’s original cost basis to its value at the decedent’s date of death. If the asset is later sold, the heir pays capital gains on the gain (if any) on the sale proceeds less the stepped-up basis. So, if sold immediately after inheritance, inherited assets generally have little or no capital gains.  Examples of Assets That Are Eligible for Basis Step-up: Stocks, bonds, mutual funds Real estate, including personal residence(s) Collectible  Personal property  Businesses  For assets gif ..read more
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Employee Fraud, Internal Control and Segregation of Duties
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
2M ago
Employee Fraud, Internal Control and Segregation of Duties Unfortunately, employee theft is rising at the rate of 15% annually. The US Department of Commerce reports that $50 billion annually is lost to employee theft. While the average theft is small and relatively short-lived, it isn’t uncommon for theft to last multiple years and cost millions of dollars. Employee fraud typically occurs when a high level of trust is combined with a lack of internal control.  Segregation of Duties  In simplest terms, segregation of duties means no single employee should have too much authority and ..read more
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Beneficial Ownership Reporting in 2024
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
2M ago
The Corporate Transparency Act (“CTA”) was a significant piece of U.S. legislation signed into law in January 2021. The CTA was created to address issues related to money laundering, fraud, and other financial crimes, including those committed by anonymous shell companies. Shell companies are set up without revealing their true owners and can be exploited for illegal activities due to a lack of transparency. Effective January 1, 2024, many entities are required to submit a report showing certain company and beneficial owner information (“BOI”) to the Financial Crimes Enforcement Network (FinCE ..read more
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IRS Increases Enforcement on Aggressive Employee Retention Credit Claims
Dent Moses, LLP | Accounting, Audit and Tax Services
by Michael Baker
3M ago
The IRS announced enforcement action against dubious Employee Retention Credit (ERC) claims by sending over 20,000 letters to taxpayers notifying the recipients of disallowed ERC claims. This compliance effort results from a review revealing many taxpayers didn’t meet the ERC criteria. Recipients not eligible for the credit will receive Letter 105 C, “Claim Disallowed.” The ERC is a refundable tax credit designed to aid businesses that continued paying employees during the COVID-19 pandemic, even amid government-ordered suspensions or significant revenue declines. In September, the IRS announc ..read more
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