Deducting home office expenses - Journal of Accountancy
WEBWith a home office, taxpayers claim a business deduction for expenses arising in a qualifying use of all or part of a residence. However, taxpayers often are uncertain about the finer points of the requirements for a home office and may be unaware of all the types of business arrangements in which they can claim a deduction, such as by owners of a …
Medicare’s tricky rules on HSAs after age 65
WEBJul 1, 2021 · A high-level overview of the Medicare enrollment rules is in order. According to Medicare.gov: 1. Taxpayers already receiving Social Security at their 65th birthday will automatically be signed up for Medicare. Taxpayers who aren't yet collecting Social Security and are still covered by an employer's group health plan because they are actively ...
A Framework for Auditor Independence - Journal of Accountancy
WEBThe framework defines, and identifies the goal of, auditor independence. The model for standard setters is based on three key steps: Identify threats to the auditor’s independence and analyze their significance. Evaluate the effectiveness of …
Asset Impairment and Disposal - Journal of Accountancy
WEBEXECUTIVE SUMMARY TO ESTABLISH A SINGLE MODEL BUSINESSES CAN follow, FASB issued Statement no. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. FASB intends it to resolve implementation issues that arose from its predecessor, Statement no. 121, Accounting for the Impairment of Long-Lived Assets and for Long …
8 ways to calculate depreciation in Excel - Journal of Accountancy
WEBMay 1, 2021 · The SYD function calculates the sum - of - years' digits depreciation and adds a fourth required argument, per. The syntax is =SYD (cost, salvage, life, per) with per defined as the period to calculate the depreciation. The unit used for the period must be the same as the unit used for the life; e.g., years, months, etc.
The basics of S corporation stock basis - Journal of Accountancy
WEBInitial basis is generally the cash paid for the S corporation shares, property contributed to the corporation, carryover basis if gifted stock, stepped-up basis if inherited stock, or basis of C corporation stock at the time of S conversion. Common basis increases include capital contributions, ordinary income, investment income and gains ...
Acquiring the tax benefits of a corporation
WEBFeb 1, 2021 · The lockdowns and disruptions of business operations from the COVID-19 pandemic have left many corporations with losses and other tax benefits they cannot use currently and perhaps not in the future. Some corporations, however, have increased their profits during the COVID-19 pandemic and perhaps their tax liability as well. Both types …
Preventing fraud with internal controls: A refresher
WEBAug 1, 2023 · TYPES OF INTERNAL CONTROLS. There are three main types of internal controls, as discussed in more detail later: Preventive controls: These controls are put in place to prevent fraud from occurring in the first place. Detective controls: These controls are used to discover fraud, should it occur despite the preventive controls in place.
A practical guide to economic nexus - Journal of Accountancy
WEBJun 1, 2021 · Most states have taken the legislative position that an organization has economic nexus if: It has annual retail sales of goods or services into the state that surpass a dollar threshold, e.g., $100,000; or. It makes a specified number of sales transactions, e.g., 200 or more, into the state.
5 best practices for intercompany accounting - Journal of …
WEBDec 1, 2016 · HOW TO PREVENT PROBLEMS. To avoid problems and to effectively support new regulatory pressures, Cheney recommended five best practices: Standardize global policies that govern critical areas across the organization. Most companies tend to have in place one or two pages of very high - level policies for intercompany accounting.