At Machen McChesney, we are committed to Returning Value to you through our monthly e-newsletter, The Value Report.

Here you'll find regular tips to help with your business and personal finances, as well as strategies to grow and more efficiently run your organization.  

Table of Content

1. Will the Standard Business Mileage Rate Go Up in 2022?
2. Businesses With Employees Who Receive Tips May Be Eligible For a Tax Credit
3. Defer Tax With a Like-Kind Exchange
4. How to Forecast Smarter
5. Inflation Is Here - What Now?
6. Entrepreneurs and Taxes: How Expenses Are Claimed on Tax Returns
7. Are Gift Cards Really a "Gift" for the Restaurant Industry?
8. Preparations vs. Compilations
9. What's New at Machen McChesney

Will the Standard Business Mileage Rate Go Up in 2022?

After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup, or panel truck would be 58.5 cents (up from 56 cents for 2021). Continue reading.

Businesses With Employees Who Receive Tips May Be Eligible For a Tax Credit

If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Continue reading.

Defer Tax With a Like-Kind Exchange

Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in some markets (and higher resulting tax bills), the like-kind exchange strategy may be attractive. Continue reading.

Inflation Is Here - What Now?

Concerns about the elevated inflationary environment continue to persist. There are numerous contributing factors, such as a rapid increase in wages, energy prices, and an imbalanced global supply chain with demand vs. supply for many goods and services far from equilibrium. To better understand these factors, it is essential to first distinguish inflation from inflationary pressure. Inflation is typified by a sustained increase in the general price levels in an economy, while inflationary pressure is described as either a leading indicator of actual inflation or temporary pricing increases due to isolated or short-term events. Continue reading. 

Entrepreneurs and Taxes: How Expenses Are Claimed on Tax Returns

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they had more time, wanted to take advantage of new opportunities, or they needed money due to being laid off. Whatever the reason, if you’ve recently started a new business or you’re contemplating starting one, be aware of the tax implications. Continue reading. 

Are Gift Cards Really a "Gift" for the Restaurant Industry?

Given the popularity of gift cards among both issuers and recipients, restauranteurs should understand the pros and cons of selling and issuing gift cards. Continue reading.

Preparations vs. Compilations

Your business needs financial statements so management can monitor performance, attract investment capital and borrow money from a bank or other lender. But not all financial statements are created equal. Audited statements are considered the “gold standard” in financial reporting. While public companies are required to issue audited statements, smaller, privately-held organizations have options. CPAs provide three other types of financial statements, which, in order of descending level of diligence, are: reviews, compilations, and preparations. Continue reading.

What's New at Machen McChesney?

Sponsorships, new hires, announcements
Continue reading. 

We hope you found value in The Value Report you've received this month. We look forward to finding even more ways to Return Value to you in the future.