4Thought Blog

4thought graphic - blog 2020

Tax Deductions for Manufacturing Equipment: How to Take Advantage

Posted by Concannon Miller on Thu, Aug 11, 2022

Does your manufacturing company need to acquire new equipment to meet demand? Fortunately, there's a tax break that can help: the Section 179 deduction.

 It allows you to deduct this year the cost of qualifying new or used property you purchase. Your deduction can even exceed the amount you provided from your own funds to make the purchase.

However, there are two limits on Sec. 179 deductions that might stand in your way. So it's important to understand all the relevant rules.

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Topics: Manufacturing

Mid-Year Tax-Planning Ideas for Individuals in 2022

Posted by Concannon Miller on Tue, Aug 9, 2022

The 2022 tax year is well underway, and year end will be here before you know it.

Summer is a good time to take proactive steps to help reduce the current year's tax bill.

Here are some federal tax-planning strategies to consider.

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Topics: Individual tax planning

Engaging Nonprofit Donors at Every Level: A Checklist

Posted by Adam Cole and Andrea Espinola Wilson on Thu, Aug 4, 2022

Nonprofit organizations have been navigating change in almost every aspect of their operations over the past two years, including shifting priorities, a new employment landscape, and changes in fundraising and hosting programs and events.

As organizations continue to reimagine what their futures will look like, donor engagement strategies should be reevaluated and refined to ensure they keep up with these other changes.

Consider the following steps to support strong donor engagement:

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Topics: Nonprofit Organizations

Business Valuation: How to Use the Cost Approach Method

Posted by Concannon Miller on Tue, Aug 2, 2022

The balance sheet — which shows a company's assets and liabilities — is a logical starting point for valuing certain types of businesses.

The cost (or asset) approach specifically focuses on this part of a company's financial statements. Here's an overview to help you understand this valuation technique.

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Topics: Business Valuation

Businesses Should Consider an Energy Audit Amid Surging Fuel Prices

Posted by Concannon Miller on Thu, Jul 28, 2022

Companies routinely evaluate opportunities to reduce expenses. With the prices of gasoline, diesel fuel, natural gas and propane surging across the country, many organizations are currently focusing on lowering energy consumption. This process starts with an energy audit.

Not only are many of the savings from an energy audit sustainable, "going green" can also add value by demonstrating responsible business practices and engendering support from environmentally conscientious employees, customers and other stakeholders. Even better, your company may qualify for tax breaks for making energy-saving changes.

An effective energy audit begins with a data gathering exercise. Consider the following nine steps:

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Topics: Business consulting

Pennsylvania Businesses: Watch Out for Department of Revenue Scams

Posted by Pennsylvania Department of Revenue on Tue, Jul 26, 2022

Scam artists are impersonating the Department of Revenue by sending Pennsylvania business owners fraudulent letters in the mail that direct them to turn over their accounting records.

The goal of this ploy is to trick unsuspecting taxpayers into providing sensitive financial information, which the criminals behind the scheme can use for a number of illicit activities that could seriously harm a business' financial standing.  

"We are urging Pennsylvania business owners to be on high alert if they receive a suspicious notice that includes the Department of Revenue name and logo,” Revenue Secretary Dan Hassell said in a recent news release.

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Topics: Scam warnings

Revenue Recognition in Construction: How to Choose the Right Method

Posted by Concannon Miller on Thu, Jul 21, 2022

While many businesses handle sales in a single transaction, construction contracts often cover months or even years and include multiple payments.

As you're well aware, the longer-term nature of construction projects can prevent contractors from billing and collecting on a timely basis, which can lead to accounting, tax and cash flow complications.

From an accounting perspective, the term "revenue recognition" refers to precisely how you determine when you've received payment and when you can record the revenue. Let's review the three most commonly used types of revenue recognition in the construction industry.

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Topics: Construction & Real Estate Development

Family Business: Hire Family Members to Save Taxes, Fill Positions

Posted by Concannon Miller on Tue, Jul 19, 2022

One of the advantages of owning and operating your own business is the ability to hire family members to fill open positions.

This can be a significant perk in today's tight labor market. Bringing on family members can have tax benefits for all involved, too, and offers an opportunity to start a retirement savings account for your children.

The potential benefits vary based on such factors as the familial relationship, your children's ages and the type of entity you chose for your business. Here's what you need to know.

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Topics: Business tax planning, Business consulting

Pennsylvania Budget Changes Business Taxes, Including Lower Taxes for Corporations

Posted by Dhruv Shah on Thu, Jul 14, 2022

Pennsylvania’s new budget for 2022-23 includes several business tax changes, including lower taxes for corporations.

The new budget cuts the corporate net income tax from 9.99% to 8.99% as of Jan. 1, 2023, and then gradually reduces (0.5%) it each year in phases until 2031, when it reaches 4.99%.

Pennsylvania’s corporate net income tax rate is currently the second highest in the nation, behind only New Jersey at 11.5%, according to the Tax Foundation. The 2031 rate will make Pennsylvania’s corporate net income tax the sixth lowest, according to the Pennsylvania Chamber of Business and Industry (PCBI).

Other business tax changes that start Jan. 1 include:

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Topics: Business tax planning, Individual tax planning

Estate Planning: How to Select an Executor, Trustee to Carry Out Your Wishes

Posted by Concannon Miller on Tue, Jul 12, 2022

There are several steps to creating and carrying out an estate plan — not all of which will fall on you.

For example, other people must act as your plan's executor and trust's trustee (although they can be the same person). Your responsibility is to name an executor and trustee (if you have a trust) that you know will faithfully follow your instructions and meet fiduciary duties.

Here are brief job descriptions and advice for choosing people to fill these critical roles.

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Topics: Estate and Trust Services

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