The Accounting & Finance Blog

  • Will Taxpayers Pay for Student Loan Forgiveness

    Will Taxpayers Pay for Student Loan Forgiveness

    In August, President Joe Biden made an important announcement that grabbed the attention of many Americans dealing with student loan debt.  He suggested eliminating a maximum of $20,000 in federal student loans for persons from lower- and middle-class backgrounds.  This announcement provided optimism to individuals who had long aspired for alleviation from their student loan…

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  • What Would Happen if the IRS Was Abolished

    What Would Happen if the IRS Was Abolished

    Not many subjects create as much discussion and disagreement as the proposal to eliminate the Internal Revenue Service (IRS).  Eliminating the IRS frequently comes up in conversations about altering the tax system, such as shifting to a national retail sales tax.  Although getting rid of the IRS may seem attractive to certain people, it’s essential…

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  • What are the 3 Types of LLCs?

    What are the 3 Types of LLCs?

    LLCs are one of the easiest structures for conducting business in the United States, offering flexible ownership and management structures.  Furthermore, unlike corporations, an LLC is considered a pass-through entity, which means its profits are taxed at the member level rather than the corporate level – meaning owners pay taxes on any distributions received. LLCs…

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  • Sales Tax on Digital Goods by State in the US

    Sales Tax on Digital Goods by State in the US

    Sales tax laws relating to digital goods often lag behind technological advances. Examples of digital products include ebooks and ringtones, online games, fonts, font downloads, and subscriptions to streaming media services. States that participate in the Streamlined Sales Tax Agreement adhere to standardized definitions for these products; however, taxability varies by state. Definitions As more…

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  • What Happens If You Miss the Tax Deadline?

    What Happens If You Miss the Tax Deadline?

    In case of tax deadline extensions, Uncle Sam will charge both an administrative penalty and interest on April 18 or, in instances where April 18 falls on a weekend or holiday, on the next business day. Failure-to-file penalties amount to 0.5% of your tax debt per month, which takes you longer than 60 days to…

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  • When Will I Get My Recovery Rebate Credit?

    When Will I Get My Recovery Rebate Credit?

    While most eligible taxpayers received their third economic impact (stimulus) check as early as a recovery rebate credit, there may still be some that must file tax returns to determine eligibility and amount – in this case, your income will determine this. If their income changes, they must use a worksheet to calculate how much…

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  • Is the Interest on a HELOC Tax Deductible?

    Is the Interest on a HELOC Tax Deductible?

    Based on the amount of mortgage debt you have and the timing of your loan, the interest on your home equity loan may be eligible for tax deduction. Per IRS regulations, in order to qualify for the tax deduction, you must have utilized the equity to purchase, expand upon, or make significant enhancements to your…

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  • What Is the Difference in Perspective Between Finance and Accounting?

    What Is the Difference in Perspective Between Finance and Accounting?

    Accounting involves recording and classifying financial transactions according to accounting standards while meeting stakeholder trust by providing accurate and verifiable information. Its primary goal is to provide precise data that builds relationships. Accounting encompasses many dimensions, from managerial accounting and tax preparation, cost accounting, and auditing to international finance and forensic accounting. Understanding its scope…

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  • What Will the Estate Tax Exemption Be in 2025?

    What Will the Estate Tax Exemption Be in 2025?

    If your estate exceeds current exemption limits, proper financial and estate planning can save substantial taxes. Unfortunately, only two tax years remain to take advantage of an increased exemption limit before its benefits “sunset.” Now is an opportune moment for retirees and others to explore various lifetime gifting strategies. The TCJA Expiration Date As we…

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  • Do You Have to Pay Back SBA Disaster Loans?

    Do You Have to Pay Back SBA Disaster Loans?

    The Small Business Administration (SBA) is charged with providing long-term disaster recovery assistance, such as loans, to cover expenses not fully covered by insurance or other sources of cover. As such, SBA disaster loan lenders must establish terms that reflect an applicant’s ability to repay. These include low-interest rates and long-term terms, as well as…

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