Considine & Considine 2023 Income Tax Organizer

by Jan 22, 2024Uncategorized

It’s been an interesting year with important tax changes that will impact you. Here are some of the changes and issues you need to know about, which are also reflected in the 2023 Tax Organizer mailed to our clients in January 2024.

Tax return due dates:

  • Individuals must file returns by April 15, 2024, for the 2023 tax year;
  • Partnerships and S corporations must file returns by the 15th day of the third month following the close of the taxable year (March 15 for calendar-year taxpayers);
  • C corporation returns are generally due by the 15th day of the fourth month following the close of the taxable year (April 15 for calendar-year taxpayers); and
  • W-2s and 1099s must be filed by January 31, 2024, for the 2023 tax year.

FinCEN Reporting
Effective January 1, 2024, the new beneficial ownership information (BOI) requirements start for most business entities. FinCEN has finally released the new reporting forms, and business entities are now able to complete and submit the FinCEN beneficial ownership report. Our Firm has made the decision NOT to prepare the BOI reports for our clients. Please review our Firm’s BOI Letter attached.

Energy Efficient Home Improvement Credit
The new law creates a 2023 Energy Efficient Home Improvement Credit that helps homeowners pay for various types of energy efficiency improvements, including

  • exterior windows, skylights, and doors;
  • home insulation;
  • heat pumps, water heaters, central air conditioners, furnaces, and hot water boilers;
  • biomass stoves and boilers; and
  • electric panel upgrades.

The old credit contained a tiny $500 lifetime cap. Lifetime caps are gone beginning in 2023.

Instead, the new law gives you a $1,200 annual cap along with specific caps on some improvements. You can perform many energy efficiency projects over several years and collect a credit each year.

Clean vehicle credits:
Starting in 2023, taxpayers have three separate tax credits available for the purchase of clean vehicles: a credit for new vehicles, a credit for previously-owned vehicles, and a credit for business vehicles. Each credit contains many rules and limitations (including an income restriction), and starting in 2024, some of these credits can be claimed at the dealership at the time of purchase. If you purchased an EV in 2023, we will need the year, make, model, VIN, and purchase date for the vehicle.

Pass-through entity elective tax:
In 2021, California passed AB 150 (Ch.21-82), which allows, for the 2021 through 2025 taxable years, a qualified S Corporation, partnership, or LLC taxed as a partnership or S Corporation to make an election to pay a pass-through entity elective tax equal to 9.3% of its qualified net income. This tax decreases the federal net income included on the owner’s K-1.

California law requires pass-through entities that want to make a pass-through entity elective tax election to make a prepayment of the tax by June 15 of the current tax year (June 15th, 2024) to qualify to make the election for that tax year.

As always, if you have any questions regarding the new tax laws please do not hesitate to contact your tax preparer. You can contact our offices at (619) 231-1977 or by email.

New Reporting Requirement: Beneficial Ownership Information (BOI)

In 2021, Congress passed the Corporate Transparency Act. This law creates a new Beneficial Ownership Information (BOI) reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains...

Considine & Considine 2023 Income Tax Organizer

It’s been an interesting year with important tax changes that will impact you. Here are some of the changes and issues you need to know about, which are also reflected in the 2023 Tax Organizer mailed to our clients in January 2024. Tax return due dates: Individuals...

Jim Swartout Becomes Managing Partner

  We are thrilled to announce that Jim Swartout, CPA, has stepped into the role of Managing Partner with Considine & Considine. Jim grew up in Washington state before moving first to the Bay Area and then to San Diego to attend San Diego State University....

Most Tax Filing & Payment Deadlines Postponed to October 2023

As many of you may have read in the media, the IRS and California Franchise Tax Board (FTB) have postponed most of this year’s tax filing and payment deadlines to October 16, 2023.  In January 2023, 31 counties in California were designated as part of a federally...

What you Need to Know about Inheritance Taxes at the Federal and State Level

Inheritance tax? Estate tax? Death tax? Aren’t these all the same thing? The short answer is no. These terms are often used interchangeably, but have very different implications for the recipient of an inherited asset. An inheritance tax requires certain beneficiaries...

How to Prepare for Selling your Business

Selling your business requires two things: records and answers. Records detail where the business has been, where it’s going, and the present and future financial needs. Answers to vital questions will help you understand the right time to sell your business; and when...

How to Start a Retirement Plan

Considine and Considine is here to help you start a retirement plan and start saving today.

What the Employee Social Security Tax Deferral Is and Means

Our answers to your commonly asked questions regarding the Social Security tax deferral. We review what the tax holiday is and means for your business.

What Business Owners Need to Know About the PPP Loan

Our answers to your commonly asked questions regarding the PPP loan. We review what the PPP loan is used for, the forgivability, and the PPP loan’s taxability.

PPP Loans: Practical Advice on Asking for Forgiveness

Considine & Considine's Rick Hotz, a partner in the Business Tax department, sits down with Amit Singh and Dulce Martinez of Stradling Attorneys at Law to talk about PPP loans. In this webinar, Hotz and his co-hosts provide some practical advice on asking for PPP...