JCCS PC

Companies that suffer unexpected downtime of key IT systems can incur substantial revenue losses. They also may face regulatory fines, blown IT budgets and elevated insurance premiums. The good news is your business can address the threat proactively. Begin with a formal risk assessment to identify the most likely causes of IT failures based on the distinctive features of your systems and users. From there, explore or enhance strategies such as tracking incidents carefully, investing wisely in cybersecurity, training and upskilling employees, establishing a disaster recovery plan, and reassessing and stress testing regularly. Contact us for help managing your technology costs.

Business driving may come to mind when you think about tax deductions for vehicle-related expenses. However, businesses aren’t the only taxpayers that can deduct driving expenses. Individuals may also be able to deduct them in certain circumstances. Unfortunately, under current law, you may be unable to deduct as much as you could years ago. For 2018 through 2025, miles may only be deductible in limited circumstances. The 2024, the per-mile rate varies depending on the purpose. For business, it’s 67 cents; for medical driving for eligible itemizing taxpayers, it’s 21 cents; for active-duty military moving, it’s 21 cents; and for charitable itemizers, it’s 14 cents. Questions? Contact us.

Happy Anniversary to Craig Woods! Craig works in our Kalispell office and has been with us for 16 years. Thank you for choosing us! https://lnkd.in/gi-pwp7

If you receive an inheritance valued at less than the estate tax exemption amount ($13.61 million in 2024 and $13.99 million in 2025), it isn’t subject to federal tax. Regardless of an estate’s size, heirs don’t have to report to the IRS, either. However, an estate’s executor must file a final tax return for the deceased person and may have to file an estate tax return. And if inherited assets produce gains, interest or earnings, that income usually is subject to income tax and must be reported. Also, several states (currently Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) impose an inheritance tax. Contact us if you’ve received an inheritance and have tax questions.

As year end approaches, you may be thinking about tax strategies. One way to reduce potential estate taxes and show generosity to loved ones is to give cash gifts before Dec. 31. Taxpayers can transfer large amounts using the annual exclusion. In 2024, the exclusion amount is $18,000. It covers gifts you make to each recipient. That means if you have three children, you can transfer $54,000 to them in 2024, free of federal gift taxes. Married couples can consent to give each recipient up to $36,000 a year. Other rules may apply, and you need to file a gift tax return if you give more than $18,000 or consent to give gifts with your spouse. We can prepare a gift tax return for you.

Happy Anniversary to Dan Konen! Dan has been with us for 41 years and works in our Great Falls office. Thank you for choosing us! https://lnkd.in/grd_8Cd

There appears to be growing interest on the part of businesses and workers in fertility benefits. These are various fringe benefits related to helping employees conceive children or otherwise build families. Examples include employer-provided or -supported coverage for fertility assessments, in vitro fertilization, fertility medications and oocyte cryopreservation (egg freezing). You may be able to provide these benefits or others through the health insurance plan you currently sponsor or by expanding its coverage. Another option is setting up a reimbursement program for participants’ fertility-related medical expenses. Contact us for help assessing the costs and tax impact.

Adopting a child is expensive. Fortunately, there may be tax breaks to help adoptive parents offset some of the costs. In 2024, a credit of up to $16,810 is available for qualified expenses, with phaseouts for higher-income parents. In 2025, the credit will rise to $17,280. The credit is nonrefundable, which means it’s limited to your tax liability. However, you generally can carry forward the unused amount for up to five years. Qualified expenses include adoption fees, legal costs and travel expenses. Some employers also provide financial adoption assistance and employees may be able to exclude the amount from income. In addition, there may be state tax benefits. Questions? Contact us.

Have you ever considered growing your business by acquiring a struggling company? Although “turnaround acquisitions” can yield substantial rewards, they come with considerable risks. Look for a target with hidden value, such as untapped market potential, replaceable leadership or cuttable costs. Determine whether the return on investment will likely exceed the acquisition costs and risks. Don’t rush or let emotions cloud your judgment. Conduct due diligence to understand the target’s profit drivers and roadblocks, as well as its cash inflows and outflows. If you decide to proceed, pay close attention to the deal’s structure and tax impact. Contact us for further information and help.

Happy Anniversary to Alissa Grimm! Alissa has been with us for 20 years and works in our Missoula office. Thank you for choosing us! https://lnkd.in/gMJDkPv