The good news is…the enhanced capitalization regulations that were enacted last year have changed. On November 24, 2015, the IRS announced that they were simplifying the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. As you may remember, new regulations were…

Purpose This accounting policy establishes the minimum cost (capitalization amount) that shall be used to determine the capital assets that are to be recorded in ABC Company’s annual financial statements (or books). Capital Asset definition A “Capital Asset” is defined as a unit of property that: (1) has an economic useful life that extends beyond…

If you employ 50 or more full-time employees, you may be subject to the Shared Responsibility payment and reporting rules under the Affordable Care Act (ACA). Employer Pay or Play Rules Applicable Large Employers (ALEs) are subject to the Employer Shared Responsibility rules, known as the Employer Mandate. An employer is generally an ALE for…

As the end of the year approaches in Maine and around the country, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the challenge include turbulence in the stock market, overall economic uncertainty, and Congress’s failure to…

Accountants from LG&H, in conjunction with SBA and SCORE, provided a free seminar for new and potential business owners called “The 2015 Small Business Success Bootcamp” in Bangor on October 22. We kicked off the day with Abe Furth, owner of Woodman’s Bar & Grill, Verve, and Orono Brewing Company, as our key note speaker….

The following is a summary of important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us at 207-990-4585 to talk and/or set up an appointment here in Bangor, Maine for more information about any of these developments and what steps…

Supreme Court upholds subsidies for health care purchased on Federal Exchange. The Supreme Court by a 6-3 vote determined that premium tax credits (also known as health insurance subsidies) under the Affordable Care Act (ACA), are not limited to taxpayers who live in States that have established their own health insurance Exchange but are also…

Whether in Bangor, Maine or elsewhere in the United State, shareholder-employees of S corporations continue to be subject to some special income tax rules. The term shareholder-employee refers to individuals who own 2% or more of the stock of an S corporation on any day of a tax year, as well as certain other individuals…

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Before January 1, 2015, an individual could rollover a distribution from one IRA to another IRA in a nontaxable transaction if the rollover was completed within 60 days after the income was received. This could be done only once in any 1-year period. However, it was determined on an IRA-by-IRA basis. Starting January 1, 2015, the nontaxable distribution on rollover rule will be applied on an aggregate basis. So, no matter how many IRA accounts a person has, only one nontaxable rollover per year will be allowed.