McSwain & Company, PS
What to Know About the Art Donation Deduction
March 1, 2024 · Blog, Financial Planning, Uncategorized
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These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
March 1, 2024
Published by Service2Client on March 1, 2024
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đź–¨ Print⏱ 4 min readIf you would like to donate artwork to an eligible charitable organization, you might be able to take a deduction on your tax return. However, the rules are complex. There are different requirements for different values, and there are scams you want to avoid that could lead to severe consequences for taxpayers who abuse this deduction. Generally, the deduction for donated art is based on the fair market value of the property. This refers to the price the artwork could reasonably be expected to sell for on the open market. To qualify for the deduction, note that the value of an art donation may be limited to between 20 percent and 60 percent of the taxpayer’s […]
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February 1, 2024
Published by Service2Client on February 1, 2024
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đź–¨ Print⏱ 4 min read Why on earth, you may ask yourself, would I care about being a good client to my tax prep professional? I mean, you are a paying client, and aside from treating them with the same decency and respect that you would show any other random person, who cares – right? Wrong! What’s in it for me? Honestly, it’s simply in your own best interest to be a good client. Maintaining a positive relationship with your tax professional can benefit you in numerous ways. Your tax preparer bills you in one of three ways: a flat fee (guaranteed); hourly; or a hybrid with a basic flat fee that they’ll only add to if out-of-scope issues/problems come […]
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February 1, 2024
Published by Service2Client on February 1, 2024
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January has come and gone. You may or may not have stuck to your resolutions, but the good news is that February is here. Now is the perfect time to hunker down and get your monetary ducks in a row. Here are a few things to put on your…
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February 1, 2024
Published by Service2Client on February 1, 2024
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Variance analysis is found by determining the difference between what was budgeted and what actually occurred. Additionally, when variances are added together, we get a better picture of how well a company is measuring its performance…
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February 1, 2024
Published by Service2Client on February 1, 2024
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đź–¨ Print⏱ 4 min readMaking further continuing appropriations for the fiscal year ending Sept. 30, 2024, and for other purposes (HR 2872) – Passed by both branches and signed by the president on Jan. 18, this is the third temporary resolution designed to avert a government shutdown until Congress can agree on appropriations for fiscal year 2024. The bill extends the government funding deadline to March 1 for four appropriations bills and another eight until March 8. Airport and Airway Extension Act of 2023, Part II (HR 6503) – This bipartisan bill was introduced on Nov. 29, 2023, by Rep. Sam Graves (R-MO). It extends certain Federal Aviation and Administration (FAA) programs and activities through March 8, namely the Unmanned […]
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February 1, 2024
Published by Service2Client on February 1, 2024
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🖨 Print⏱ 4 min readEmail marketing remains the most powerful and effective tool, especially for its high ROI, reach, and engagement. It plays a significant role in business growth. However, more stringent measures are necessary due to evolving threats, hence the recent email deliverability requirements. Starting this February, major email providers Gmail and Yahoo are implementing stricter email deliverability rules to combat spam and protect user inboxes. This announcement was made by both Google and Yahoo on Oct. 3, 2023, indicating a united effort to enhance email security. Initially intended for bulk senders (marketers, businesses, and individuals) sending more than 5,000 emails a day, it also applies to senders who send regular emails to their subscribers and meet criteria as […]
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February 1, 2024
Published by Service2Client on February 1, 2024
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đź–¨ Print⏱ 3 min readOne of the positive aspects of sustained high-interest rates is higher yields on bonds, particularly high-quality municipal bonds. It is possible that 2024 will present a different scenario as the Federal Reserve begins a schedule of monetary easing by reducing interest rates over time. The potential for this strategy, combined with a slowdown in inflation and economic growth – and exacerbated by the potential volatility of a U.S. presidential election – offers a hazy but ultimately positive outlook for municipal bonds. For now, investors with a long-term outlook (up to 10 years) can take advantage of current high-interest rates before they begin declining. A key recommendation is to focus on the credit quality of muni bond […]
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January 1, 2024
Published by Service2Client on January 1, 2024
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đź–¨ Print⏱ 3 min read The top leadership in the IRS is set to change. IRS Commissioner Daniel Werfel believes the changes are needed for the agency to meet its new goals. He aims to create greater flexibility and efficiency over the agency by streamlining internal processes. The changes also are needed, in his view, to adapt to the evolving landscape around tax administration – which has undergone changes due to new tax laws and technology. What Are the Changes? Changes to the organizational structure include reducing the Deputy Commissioner post to a single position (there are currently two); as well as creating four new positions with an IRS chief of taxpayer services, IT, compliance, and operations. Long Time No […]
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January 1, 2024
Published by Service2Client on January 1, 2024
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đź–¨ Print⏱ 3 min readA joint resolution providing for Congressional disapproval under Chapter 8 of Title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to Small Business Lending Under the Equal Credit Opportunity Act (SJ Res 32) – This resolution was introduced on June 13 by Sen. John Kennedy (R-LA). It nullifies a rule issued by the Consumer Financial Protection Bureau (CFPB) that requires financial institutions to collect and report credit application data for small businesses to the CFPB. The bill passed in the House and the Senate on Dec. 1, but President Biden has threatened to veto the resolution because he believes it would reduce transparency and accountability in small business […]
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January 1, 2024
Published by Service2Client on January 1, 2024
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🖨 Print⏱ 4 min readThe unrelenting advancement of technology is still going strong even as we enter 2024. The business landscape is poised for transformative changes, driven by ongoing developments that demand organizations to be innovative and adaptive. Below, we explore some key technology trends that businesses should keenly observe to remain competitive. 1. Artificial Intelligence (AI) Advancements: Unlocking New Possibilities The year 2023 witnessed widespread adoption of generative AI in various applications, from design tools to search engines and office software. This transformative shift changed the way businesses interact with technology. Continued integration of AI is expected to redefine automation, decision-making processes, and customer experiences. Evolving AI algorithms, especially in natural language processing and computer vision, will play a […]
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January 1, 2024
Published by Service2Client on January 1, 2024
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đź–¨ Print⏱ 5 min readFor many, buying a home is the biggest asset they will ever own. However, you aren’t able to fully benefit from that asset until you pay off the mortgage; until then, it is technically a liability. The most common length of a mortgage loan is 30 years, but most people either sell their home, refinance their mortgage – or even pay it off before the end of that term. What are the pros and cons of paying off a mortgage early? Obviously, you no longer have to make monthly payments, so money can be directed elsewhere. It is advisable to pay off your mortgage before you retire when most people live on a lower, fixed income. […]
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January 1, 2024
Published by Service2Client on January 1, 2024
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Fiduciary accounting, which is also referred to as court accounting, is a way to document and report financial activity during a discrete period of time for legal entities, such as a conservatorship, estate, trust or guardianship…
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January 1, 2024
Published by Service2Client on January 1, 2024
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Here we go again. The new year is approaching and those resolutions are staring us in the face – and the most common? Saving money. In fact, according to…
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December 1, 2023
Published by Service2Client on December 1, 2023
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đź–¨ Print⏱ 5 min read It’s that time of year again: time for year-end tax planning. With the end of 2023 coming fast, the time to act is now. In this article, we’ll look at the moves you can make to optimize your tax situation in 2023 as an individual taxpayer. Itemized Deductions Flexing your timing on itemized deductions is a solid strategic move. It can help you shift to a bigger itemized deduction in 2023 versus 2024 (but not both). This can be advantageous if you expect to be in a higher tax bracket in one year compared to the other. Key itemized deductions to consider are home interest, state and local taxes, charitable deductions, and medical expenses. Electric […]
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December 1, 2023
Published by Service2Client on December 1, 2023
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🖨 Print⏱ 6 min readThe biggest difference between managing taxes throughout your career versus during retirement is that when you are retired, you are responsible for calculating how much you owe and paying it on a timely basis. Retirees normally have several different income sources, and not all automatically withhold taxes from distributions. Retirement Income Sources Having multiple sources of income during retirement is a good strategy, as it helps protect you from market declines, tax legislation changes, and potential defaults or cutbacks in pensions or entitlement programs. However, be aware that the more income sources you have, the more effort it takes to determine how much you owe in taxes for the year. As a general rule, retirement income […]
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December 1, 2023
Published by Service2Client on December 1, 2023
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đź–¨ Print⏱ 4 min readUnless you’re near retirement, chances are you’re depositing a certain amount of cash each year in your IRA at tax time, then kind of forgetting about it, not thinking much about it until the next year. This dynamic can cost you a lot of money – today and at retirement age. Here are a few ways to make all your hard-earned money work even harder. Invest your money; don’t simply fund it. According to a Vanguard study, two-thirds of last-minute IRA contributions end up just sitting in money market funds. The result? They’re just a little more than a checking account with a fancy name. Lesson: Don’t let your funds sit idle. They should be placed […]
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December 1, 2023
Published by Service2Client on December 1, 2023
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🖨 Print⏱ 4 min readThe emergence of digital currency is reshaping how businesses operate and account for financial transactions. As accounting professionals navigate this transformative wave, understanding the profound impact of digital currency on business accounting becomes not just relevant but imperative. What is digital currency? Digital currency is a form of currency that exists only in electronic or digital form, without a physical counterpart like coins or banknotes. There are two main types of digital currencies. First, there are decentralized cryptocurrencies such as Bitcoin or stablecoins such as USDC (that track to the US dollar at 1-1). Cryptocurrencies are always based on blockchain technology. The other main type and more likely to serve as a substitute for traditional government […]
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December 1, 2023
Published by Service2Client on December 1, 2023
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đź–¨ Print⏱ 3 min readA bill to amend Title 38, United States Code, to extend and modify certain authorities and requirements relating to the Department of Veterans Affairs, and for other purposes. (S 2795) – This bill was introduced on Sept. 13 by Sen. Don Tester (D-MT). This act extends various Department of Veterans Affairs (VA) programs and benefits, including extending the use of contract healthcare professions for disability exams from three to five years; extending authorization for VA emergency preparedness for public health emergencies through fiscal year 2028; and extending certain fee rates under the VA’s home loan program through Nov. 15, 2031. The bill passed in the Senate on Sept. 13, the House on Sept. 26, and was […]
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December 1, 2023
Published by Service2Client on December 1, 2023
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According to the United States Department of Labor's Consumer Credit Protection Act (CCPA), wage garnishments are a complex legal process for employers to account for when it comes to employment matters. This article…
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November 1, 2023
Published by Service2Client on November 1, 2023
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When it comes to measuring revenue, it’s essential that businesses analyze it from a variety of perspectives. While there's revenue and net income on an income statement to show a company's quarterly financials, another way…
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