The basics of S corporation stock basis - Journal of Accountancy
WEBInitial basis is generally the cash paid for the S corporation shares, property contributed to the corporation, carryover basis if gifted stock, stepped-up basis if inherited stock, or basis of C corporation stock at the time of S conversion. Common basis increases include capital contributions, ordinary income, investment income and gains ...
Medicare’s tricky rules on HSAs after age 65
WEBJul 1, 2021 · A high-level overview of the Medicare enrollment rules is in order. According to Medicare.gov: 1. Taxpayers already receiving Social Security at their 65th birthday will automatically be signed up for Medicare. Taxpayers who aren't yet collecting Social Security and are still covered by an employer's group health plan because they are actively ...
5 best practices for intercompany accounting - Journal of …
WEBDec 1, 2016 · HOW TO PREVENT PROBLEMS. To avoid problems and to effectively support new regulatory pressures, Cheney recommended five best practices: Standardize global policies that govern critical areas across the organization. Most companies tend to have in place one or two pages of very high - level policies for intercompany accounting.
Deducting home office expenses - Journal of Accountancy
WEBWith a home office, taxpayers claim a business deduction for expenses arising in a qualifying use of all or part of a residence. However, taxpayers often are uncertain about the finer points of the requirements for a home office and may be unaware of all the types of business arrangements in which they can claim a deduction, such as by owners ...
Frequently asked engagement letter questions - Journal of …
WEBSep 1, 2021 · Engagement letters can help prevent a disagreement from growing to a claim. If a claim should arise, the existence of an engagement letter generally leads to lower claim severity. In a 2017 analysis, the increase in the average dollar amount of claims when engagement letters were not used ranged from 19% to 71%, depending on the firm size.
A Risk-Based Approach to Journal Entry Testing - Journal of …
WEBTo extract journal entries that equate to round multiples of 10,000, 100,000 and 1,000,000, use the Excel MOD () function, which provides the remainder after the auditor divides a number by a divisor. For example, say that $10,422 is in cell A1 and the function MOD (A1,1000) is placed in cell B1.
Maintaining independence with nonattest services
WEBNov 1, 2016 · Maintaining independence with nonattest services. Safeguards can help prevent impairments to independence. Independence is a critical concern for CPAs and is the very foundation of attest services. Independence is a state of mind that permits CPAs to perform without being affected by influences that compromise professional judgment, …
Creating Joint Ownership: Avoiding the Tax Traps and Other Pitfalls
WEBJoint tenancy—commonly referred to as joint ownership with survivorship rights—is usually considered a good idea for husbands and wives. However, with nonspouses, joint tenancy could have costly consequences when used as a quick-fix planning tool without looking at all its implications. Establishing joint ownership of an asset with one’s ...
Currency Translation Adjustments - Journal of Accountancy
WEBThe financial statements of many companies now contain this balance sheet plug. As shown in Exhibit 1, eBay’s currency translation adjustments (CTA) accounted for 34% of its comprehensive income booked to equity for 2006. General Electric’s CTA was a negative $4.3 billion in 2005 and a positive $3.6 billion in 2006.
Fraud is suspected: Now what? - Journal of Accountancy
WEBAug 1, 2022 · As AU - C Section 240 states: "Although the auditor may suspect or, in rare cases, identify the occurrence of fraud, the auditor does not make legal determinations of whether fraud has actually occurred" (¶ .3). The legal determination of whether fraud has occurred is made by a judge or jury, not by management and not by the auditor.