Verity CPAs

🚨 IRS Launches Regulatory Initiative Targeting Partnership Tax Loopholes 🚨 The IRS is focusing on large, complex partnerships using basis-shifting transactions to reduce their tax liability. With proposed regulations and reporting requirements on the horizon, partnerships need to tread carefully to stay compliant. Key changes include: -Blocking inappropriate tax benefits. -Requiring partnerships to report basis-shifting transactions exceeding $5 million. -Challenging transactions that lack economic substance. Stay ahead of these changes and ensure compliance with Verity CPAs. Our team specializes in helping businesses navigate complex tax regulations. 📧 Contact us at info@verity.cpa | ☎️ 808.546.5026 #TaxStrategy #IRSRegulations #PartnershipTax #VerityCPAs

Maximize College Financial Aid: Tax Strategies for Parents Here’s an important financial aid tip for parents: The way you manage assets can affect your child's aid eligibility. Retirement plans and IRAs don’t count for college aid purposes, but assets in your child's name do—at a rate of 20%, versus just 5.6% for assets in a parent's name. Keeping savings in your own name, especially during the critical last two years of high school, can improve your chances of qualifying for aid. Also, remember that merit-based awards are available even for well-off families if students meet certain academic benchmarks. And contributing to retirement accounts doesn’t just save on taxes—it can also preserve your family’s financial aid eligibility. Need guidance on optimizing your college savings strategy? Contact Verity CPAs at info@verity.cpa or 808.546.5026 today to get started! #FinancialPlanning #TaxStrategy #CollegeAid #VerityCPAs

How to Avoid the IRS Penalties from Misclassifying Independent Contractors Many businesses use independent contractors to cut costs, but the IRS is paying closer attention to how these workers are classified. Misclassifying freelancers as employees can lead to penalties, back taxes, and more. With the rise of gig work, it’s critical to follow best practices and protect your business from costly mistakes. What can you do? Set clear boundaries: Ensure your independent contractors sign agreements stating that they’re responsible for their own taxes and don’t receive employee benefits. Consistent treatment: Treat all workers doing similar tasks either as contractors or employees — not both. Proper documentation: Don’t forget to issue Form 1099-NEC for contractors paid $600 or more. Limit benefits: Avoid offering perks to contractors that are typically reserved for employees, such as office space or equipment. By taking these steps, you can safeguard your business from potential audits or penalties. Contact Verity CPAs at info@verity.cpa or 808.546.5026 for help in managing your workforce classification properly.

Maximize Your Savings with Enhanced Energy-Efficient Building Deductions! With the Inflation Reduction Act (IRA), the Section 179D deduction for commercial buildings has been supercharged. You can now claim up to $5.36 per square foot for energy-efficient upgrades like lighting, HVAC, and more. What’s more, it’s now easier than ever to qualify! Key updates include: -Lower energy savings threshold (from 50% to 25%) -Sliding scale deductions based on energy savings -Bonus deductions for projects meeting prevailing wage standards If you’ve made past improvements, it’s not too late to claim them! Learn how you can benefit by contacting Verity CPAs today. 📩 info@verity.cpa | 📞 808.546.5026 #EnergyEfficiency #TaxDeductions #GreenBuildings #VerityCPAs

Borrowing from your 401(k) or profit-sharing plan can offer financial flexibility, but it’s important to understand the rules and potential tax implications before you do. How Much Can You Borrow? Typically, you can borrow the lesser of $50,000 or 50% of your vested balance, giving you access to a significant portion of your savings. What Are the Risks? Reduced Retirement Savings: If you fail to repay the loan, the funds could be permanently lost due to contribution limits that restrict how much you can put back into the account. Tax Consequences: Missed payments are considered taxable distributions, which could lead to federal income tax, state tax liabilities, and a 10% early withdrawal penalty if you're under 59½. Can You Deduct the Interest? This depends on how you use the loan. If you use it for business purposes, the interest may be deductible. However, if the loan includes salary reduction contributions (elective deferrals), the interest is usually not deductible. What About Other Plans? Loans from other types of retirement plans, such as defined benefit pension plans, might allow for interest deductions, but this depends on how the borrowed funds are used and if you meet IRS rules. Considering a loan from your retirement account? Verity CPAs can help you navigate the tax rules and plan the best course of action for your financial future. Contact us at info@verity.cpa or call 808.546.5026 for tailored advice.

New Partnership Announcement: Verity CPAs x FileForms We are pleased to announce our collaboration with FileForms to bring you an advanced solution for Beneficial Ownership Information (BOI) reporting. With the Corporate Transparency Act now in effect, ensuring your company’s compliance is crucial. FileForms offers a robust, user-friendly platform that simplifies the reporting process. Verity CPAs will be with you every step of the way, providing the expertise you need to stay compliant in this evolving regulatory landscape. Important Information: -Who Needs to File: Most corporations, LLCs, and limited partnerships. -Who is a Beneficial Owner: Individuals with 25%+ ownership or significant influence. -Deadlines: January 1, 2025, for existing companies; 90 days post-formation for new entities. -Penalties: $591/day, up to $10,000 per entity, plus possible legal action. Get started today: File Your BOI Report. For any questions, reach out to us at info@verity.cpa or 808.546.5026. We’re here to help you navigate these new requirements with confidence.

Important Update for Hawaiʻi Property Owners & Managers: HCTAT Notices for 2022 Starting August 2024, Notices of Assessment for the Hawaiʻi County Transient Accommodations Tax (HCTAT) for 2022 are being issued. Key takeaways: -No separate registration or return needed if you have a State TAT number. -Payments are due with State TAT filings; calculate HCTAT at 3%. -Online and mail payment options available, with special provisions for bulk filers. Ensure compliance to avoid penalties. For tailored tax advice, contact Verity CPAs today at info@verity.cpa or 808.546.5026. #TaxCompliance #HawaiiBusiness #HCTAT #VerityCPAs

Happy Labor Day from Verity CPAs! We want to take a moment to honor the hard work and dedication of all workers this Labor Day. In observance of the holiday, our offices will be closed on Monday, September 2nd. We hope you enjoy a well-deserved day of rest and relaxation. We’ll be back to assist you on Tuesday, September 3rd. Have a wonderful holiday!

Is Your Business Using the Most Tax-Advantageous Accounting Method? With the expanded eligibility for the cash method under the TCJA, many businesses can now optimize their tax strategies. Whether you should switch from accrual to cash accounting—or vice versa—depends on your unique financial situation. At Verity CPAs, we help you navigate these choices to maximize your tax benefits. 📊 Contact us at info@verity.cpa or 808.546.5026 to determine the best accounting method for your business and streamline your financial operations. #Accounting #TaxPlanning #SmallBusiness #FinanceStrategy

Strategic Tax Planning for 2024: What Your Small Business Can Do Now As we move through the year, now is an excellent time for small business owners to review their financial strategies to reduce next year’s tax burden. Here are some key tactics: 1. Timing Income & Deductions: If you anticipate being in a lower tax bracket in 2025, deferring income and accelerating deductions can be beneficial. 2. Maximizing Depreciation: Utilize Section 179 and bonus depreciation to lower taxable income. 3. Retirement Plans: Setting up a SEP-IRA or 401(k) can provide significant deductions. 4. QBI Deduction: Ensure your strategies do not inadvertently reduce your qualified business income deduction. Start planning today! Contact Verity CPAs at info@verity.cpa or 808.546.5026 for personalized tax advice.