BKHM Blog

Update on Deducting Personal Casualty Losses

Posted by BKHM CPAs on Thu, Apr 11, 2019 @ 09:55 AM

Every year, millions of Americans are struck by sudden, unexpected disasters — including hurricanes, wildfires, floods, tornadoes, volcanoes, and even vandalism and terrorist attacks. These destructive events can cause injuries, death and property damage.

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2018 Tax Return Extensions

Posted by BKHM CPAs on Thu, Mar 14, 2019 @ 02:09 PM

Consistent with our experience, we have received notification from other CPA firms as well as from the flow-through entities themselves, including some of the largest in the country (i.e. Boston Capital), that there is an increased likelihood that 2018 returns, both individual and businesses, will need to be extended for the current year.  This is an industry-wide trend due to several factors. 

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How a CPA Can Help KonMari Your Finances

Posted by BKHM CPAs on Tue, Feb 19, 2019 @ 10:13 AM

Anyone else feel a tad bit inadequate after watching “Tidying Up with Marie Kondo” on Netflix? If you haven’t heard of the series, during each episode, organizing expert Marie Kondo helps clients clear out clutter in their lives with her KonMari method. Before watching I thought I was a relatively neat person, but now I have a tiny voice in my head yelling, “WOW, STAND THAT UP VERTICALLY, YOU SLOB,” every time I put away laundry.

But enough about me. Let’s talk about how we can apply some of Kondo’s tactics to another aspect of life that may need some work: money.

When you think about it, CPAs are the Marie Kondos of finance. They’re the gurus of managing money, and they help us keep our financial house in tip-top shape. Read on for a few ways CPAs keep their clients accountable using KonMari-esque tactics.

They help clients find joy.

When Kondo helps clients decide if they should keep or donate an item, she has them ask themselves, “Does this spark joy?” If so, they keep it, and if not, it’s clutter to get rid of.

CPAs help their clients do the same with their finances by asking the hard questions. Do you really need a brand-new car? Will renting office space for your online business actually grow your success? This keeps their clients in check by helping them determine what expenses really matter. A lot of the time, financial stability can provide the freedom to “spark joy” in your life. It goes back to the old “wants vs. needs” lecture we heard from our parents – make sure you cover all your bases first, and then you can decide what to splurge on.

They take care of the paperwork. 

That junk drawer in your kitchen likely houses months and months of random bills and receipts, among other things. Kondo recommends getting rid of the paper items you don’t need in order to declutter, especially if they can be found online (e.g., bank statements, credit card bills, etc.).

Just as those takeout menus can overflow your junk drawer, so can tax documents. If you’re doing your taxes sans CPA, prepare for something similar to Harry Potter’s thousands of Hogwarts letters ambushing the Dursley’s living room. Freelancers might have multiple 1099s, and then there’s the 1095-A and maybe a 1098… the list goes on. CPAs can help take care of the physical (and mental) clutter by organizing the documents you need and filing them efficiently.

They make sure everything has its place.

Kondo is a big proponent of categorizing items so that everything has a place of its own and is easily found. Similarly, CPAs help clients categorize their finances. Whether you’re starting a college fund for your newborn baby, investing in your 401(k) or launching a small business, a CPA can help you budget for each goal and separate the money accordingly.

If you don’t have a CPA helping you with your finances, I encourage you to get one so they can help you rise above all that clutter. For more information on how to find a CPA near you, check out #CPApowered’s Find-a-CPA tool.

Samantha Delgado, Manager - Communications, PR & Corporate Responsibility, Association of International Certified Professional Accountants

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BKHM Promotions

Posted by BKHM CPAs on Tue, Feb 12, 2019 @ 08:50 PM

BKHM is very pleased to announce that Nick Adams, CPA has been promoted to Director of Audit Services, Sean Sarkissian, CPA has been promoted to Tax Supervisor and Lauren Heben, CPA has been promoted to Tax Senior.

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Estate Tax Planning Tips for Married Couples

Posted by BKHM CPAs on Thu, Jan 31, 2019 @ 10:48 AM

For married people with large estates, the Tax Cuts and Jobs Act (TCJA) brings welcome relief from federal estate and gift taxes, as well as the generation-skipping transfer (GST) tax. Here's what you need to know and how to take advantage of the favorable changes.

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New Employer Credit for Paid Family and Medical Leave

Posted by BKHM CPAs on Mon, Jan 07, 2019 @ 09:53 AM

If your business offers paid family and medical leave to your employees, a new business credit may apply! Beginning after December 31, 2017, a credit is available for up to 25% of wages paid for family and medical leave for qualifying employees. See below for an explanation of the details of the credit.

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4 Year-End Strategies to Lower Your Personal Tax Bill

Posted by BKHM CPAs on Wed, Dec 05, 2018 @ 11:15 AM

The countdown to year end has begun. Have you positioned yourself to minimize your 2018 tax bill? The Tax Cuts and Jobs Act (TCJA) made sweeping changes to the federal tax laws that will affect virtually all individual taxpayers — and most of those changes went into effect for this tax year. Here are four tried-and-true tax planning strategies, tweaked to account for the TCJA. 

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Understanding Education Credits

Posted by BKHM CPAs on Tue, Nov 27, 2018 @ 09:28 AM

The two education credits, the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), survived the 2018 Tax Cuts and Jobs Act.  See below for helpful tips and a ch

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Adult Literacy League - Rise and Shine on Literacy Breakfast

Posted by BKHM CPAs on Wed, Oct 24, 2018 @ 11:11 AM
BKHM CPAs attended the Rise and Shine on Literacy breakfast for the Adult Literacy League in Central Florida 
 
1 in 5 adults in Central Florida read at or below a 5th grade level.
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Choosing Between a Calendar Year and a Fiscal Year

Posted by BKHM CPAs on Wed, Sep 26, 2018 @ 10:29 AM

Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. But for businesses whose primary operating season doesn’t fall neatly within a single calendar year, choosing a fiscal year end can make more sense.

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