1040 Accounting

04/02/2026

📋 Beneficiary designations on a 401(k), IRA, or life insurance policy override whatever your will says. If a former spouse is still named on the account, the money goes to them regardless of any other document you have.

A will names who gets what and who manages the process. A trust does the same but avoids probate and lets you control when distributions happen. These are different tools, and most families need both.

A financial power of attorney lets someone pay bills, file taxes, and manage accounts if you become incapacitated. A healthcare power of attorney lets someone make medical decisions. Without both, your family may need a court-appointed guardian to act on your behalf.

HIPAA authorization is the one most families forget. Without it, adult children and spouses may not be able to access medical information even in an emergency.

A letter of intent is not legally binding but serves as a guide for your executor or trustee. It covers things a will does not: who gets the family photos, how you want certain personal property handled, and any context behind your decisions.

The digital asset list is increasingly necessary. Email accounts, financial logins, subscriptions, cloud storage, and cryptocurrency wallets can be lost entirely if no one knows how to access them.

One limitation: a trust avoids probate and provides privacy, but it costs more to set up and requires retitling assets into the trust to be effective. A will alone may be sufficient for smaller estates with straightforward beneficiary designations.

01/26/2026

🏠 Transferring a home to your children isn't just a legal question — it's a tax question. And the tax outcome depends almost entirely on how the transfer happens.

If you sell the home, you may owe nothing on up to $250,000 in gains ($500,000 if married) thanks to the primary residence exclusion. Anything above that is subject to capital gains tax. This works well if you've lived there at least two of the last five years and your gain falls within those limits.

If you gift the home while you're alive, your children inherit your original cost basis. No tax is owed at the time of the gift, but when they sell, they'll owe capital gains on everything above what you originally paid — which could be significant for a home purchased decades ago.

If the home passes at death, the basis resets to fair market value.

All the appreciation during your lifetime disappears from the tax calculation. Your children only owe tax on gains that occur after they inherit. For highly appreciated homes, this is often the most tax-efficient path.

The 2026 gift and estate tax exemption — now $15 million per person — means most families won't owe federal gift tax regardless of which option they choose.

12/03/2023

The Internal Revenue Service penalty for tax underpayments has nearly tripled since 2021, putting gig economy workers and consultants at the largest risk of having to cough up big bucks to Uncle Sam.

BEWARE

As of Oct. 1, the IRS will now charge 8% interest on estimated tax underpayments, up from 3% two years ago, according to The Wall Street Journal.
The Internal Revenue Service penalty for tax underpayments has nearly tripled since 2021, putting gig economy workers and consultants at the largest risk of having to cough up big bucks to Uncle Sam.

11/03/2023

08/24/2023

Now Quick books online Advanced Pro Certified

07/27/2023

The IRS' practice of unannounced visits ended immediately on Monday 7/2023
in an effort to reduce public confusion and put taxpayer and employee safety first. But the stoppage stemmed from one primary factor − scam artists impersonating IRS agents.

For decades, IRS agents showed up to households and businesses in-person to address tax questions, but the growth in scam artists impersonating IRS agents would often confuse taxpayers and local law enforcement, IRS Commissioner Danny Werfel said in a prepared statement.

"These visits created extra anxiety for taxpayers already wary of potential scam artists," Werfel said. "At the same time, the uncertainty around what IRS employees faced when visiting these homes created stress for them as well. This is the right thing to do and the right time to end it."

07/27/2023

The Employee Retention Credit, also sometimes called the Employee Retention Tax Credit or ERTC, is a tax credit enacted to help businesses during the pandemic that was subsequently amended three times by Congress. Many businesses legitimately apply for the credit.

“The amount of misleading marketing around this credit is staggering, and it is creating an array of problems for tax professionals and the IRS while adding risk for businesses improperly claiming the credit, “A terrible scenario is unfolding that hurts everyone involved -- except the promoters.”

12/29/2022

After Congress Fails To Act, IRS Delays Onerous New 1099-K Reporting For Payment Platforms

(Forbes) - Call it a holiday miracle. The IRS has decided, in the absence of Congressional action, to delay for one year the implementation of a law that requires payment and e-commerce platforms like PayPal...etc

07/14/2022

Notary Services now being offered