It’s advantageous for short-term investors to qualify as traders, rather than investors, for federal income tax purposes. Unfortunately, there’s no bright-line distinction between trader and investor status. Here’s an overview of the IRS and U.S. Tax Court guidance to help determine if you qualify as a tax-favored securities trader. Review the IRS Guidance According to… Continue reading

Have you ever completed a job only to realize that the cost of performing the work equals or exceeds the revenue that the project brought in? This phenomenon is called “profit fade” and, if it occurs repeatedly, it can prove fatal to your business. Although profit fade could threaten any construction business, it’s a particular concern… Continue reading

Preparing for a surge in demand for your business’ products and services doesn’t mean you have to go out on a financial limb. But some contingency planning may be in order. The Federal Reserve Bank of Richmond is a helpful source for data and analysis on where the national economy is heading. It provides a peek… Continue reading

Virtual currencies, also known as cryptocurrencies, have gone mainstream. For example, you can use Bitcoin to buy a Tesla, or you can use a Bitcoin wallet on your smartphone to make everyday purchases. But beware: Using virtual currency has federal income tax implications that may surprise you. With increasing market acceptance and the skyrocketing price… Continue reading

The U.S. Department of Labor (DOL) has recently taken action on the criteria for determining independent contractor status, rescinding regulations that were enacted as recently as two weeks prior to President Biden’s inauguration in the last days of the Trump administration. That means what’s old is new—the regulations in force now are left over from… Continue reading

The pandemic has adversely affected many sectors of the U.S. economy, causing widespread job losses. At the start of the national emergency, Congress created a novel tax break—the Employee Retention Credit (ERC)—to entice employers to retain employees. But three different laws have created and changed the credit, which has led to significant confusion. Here’s a… Continue reading