Blog - Linkenheimer LLP CPAs & Advisors

Closing a Business Involves a Number of Tax Responsibilities

While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities.

To start with, a business must file a final federal income tax return and some other related forms for the year it closes its doors. The type of return that must be filed depends on the type of business you have. For example:

Sole Proprietors will need to file the usual Schedule C, “Profit or Loss from Business,” with their individual returns for the year they close their businesses. They may also need to report self-employment tax.
Partnerships must file Form 1065, “U.S. Return of Partnership Income,” for the year they close. They also must report capital gains and losses on Schedule D. They indicate that this is the final return and do the same on Schedule K-1, “Partner’s Share of Income, Deductions, Credits, etc.”
All Corporations need to file Form 966, “Corporate Dissolution or Liquidation,” if they adopt a resolution or plan to dissolve an entity or liquidate any of […]

By Linkenheimer LLP|2024-07-23T13:47:35+00:00July 23rd, 2024|business, tax implications|0 Comments

The Rising Threat of QR Code Phishing: What You Need to Know

As technology advances, so do the tactics of cybercriminals. One of the latest methods they employ is QR code phishing, often referred to as “quishing.” This article explores the dangers of quishing, backed by current statistics and real-life examples that may be pertinent to both our clients and staff.

The Surge in Quishing Attacks

Since the onset of the COVID-19 pandemic, the use of QR codes has surged due to their convenience for contactless transactions and information sharing. However, this rise in popularity has also made them an attractive target for cybercriminals. According to the 2024 Phishing Threat Trends Report by Egress, QR code phishing attacks have increased dramatically. In 2021, QR codes were used in only 0.8% of phishing attacks. This figure jumped to 12.4% in 2023 and has stabilized at 10.8% in early 2024 (Egress Email Security).

How Quishing Works

Quishing typically involves embedding malicious QR codes in emails, social media posts, or […]

By Linkenheimer LLP|2024-07-16T21:00:17+00:00July 16th, 2024|Tech|0 Comments

Be Aware of the Tax Consequences of Selling Business Property

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more than a year.

Note: There are different rules for property held primarily for sale to customers in the ordinary course of business, intellectual property, low-income housing, property that involves farming or livestock, and other types of property.

Basic rules

Under tax law, your gains and losses from sales of business property are netted against each other. The tax treatment is as follows:

If the netting of gains and losses results in a net gain, then long-term capital gain treatment results, subject to “recapture” rules discussed below. Long-term capital gain treatment is generally more favorable than ordinary income treatment.
If the netting of gains and losses results in a net loss, that loss is fully deductible against ordinary income. (In other words, none of the rules that limit the deductibility of capital losses apply.)

The availability of long-term capital gain treatment for […]

By Linkenheimer LLP|2024-07-15T19:46:17+00:00July 15th, 2024|business, property tax|0 Comments

Planning Your Estate? Don’t Overlook Income Taxes

The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate tax, it’s a good time to devote more planning to income tax saving for your heirs.

Important: Keep in mind that the federal estate tax exclusion amount is scheduled to sunset at the end of 2025. Beginning on January 1, 2026, the amount is due to be reduced to $5 million, adjusted for inflation. Of course, Congress could act to extend the higher amount or institute a new amount.

Here are some strategies to consider in light of the current large exemption amount.

Using the annual exclusion

By Linkenheimer LLP|2024-07-10T15:01:12+00:00July 10th, 2024|estate, income tax|0 Comments

Sustainable Business Practices Through Technology

As environmental concerns become more pressing, businesses of all sizes are recognizing the importance of adopting sustainable practices. For companies in California, integrating sustainability into business operations not only helps protect the planet but also appeals to an increasingly eco-conscious consumer base. Technology offers a wealth of solutions to help businesses achieve their sustainability goals. Here are several ways technology can drive sustainable business practices:

1. Energy Management Systems

One of the most effective ways to reduce a company’s carbon footprint is through energy management systems (EMS). These systems use smart sensors and software to monitor and optimize energy usage in real-time. By identifying areas where energy is wasted, businesses can implement changes that lead to significant reductions in energy consumption and costs.

2. Smart Lighting and HVAC Controls

Upgrading to smart lighting and HVAC systems can drastically cut energy usage. Smart lighting systems, such as LED bulbs combined with motion sensors and timers, ensure that lights are only on when needed. Similarly, smart thermostats and HVAC controls can adjust temperatures based on occupancy and usage patterns, reducing energy waste.

3. Cloud Computing

Moving business operations to the cloud can significantly reduce the environmental impact associated with maintaining […]

By Linkenheimer LLP|2024-07-02T16:30:12+00:00July 2nd, 2024|Tech, tips|0 Comments