The Kernutt Stokes Advisor

Stock Market: Volatility Returns—Finally

After months of warnings from Wall Street that the market’s extraordinarily long bull run could not last forever, the inevitable happened. Volatility returned to U.S. markets in a major way in February. The precipitous falls that happened on Feb. 2 and 5 were all the more shocking to investors because the market trend for many months had been almost constantly…

Streamline and Save with New Tax Accounting Options

By Benton Collins, CPA Taxpayers will be hard pressed to find any of the often promised simplification when looking through the business provisions of the Tax Cuts and Jobs Act.  There are, however, a few bright spots in the bill that afford taxpayers the ability to streamline their tax accounting processes while also reducing taxes due. Accounting Methods For tax…

Cryptocurrency Tax Essentials

Cryptocurrency is hot right now. As it emerges as an asset class of its own, many people are still confused about how to treat it for federal income tax purposes. In response, the IRS issued guidance back in 2014 that treats virtual currencies that are convertible to cash as a capital asset—but it’s not as simple as it appears. Taxable…

2018 Tax Reform Introduces Qualified Business Income and Related Deduction

By Brent Laird, CPA and John Mlynczyk, CPA Qualified Business Income (QBI) is a new tax concept introduced with 2018 tax reform.   Many taxpayers are eagerly asking questions about QBI because of the related tax deduction (up to 20%).  This provision allows taxpayers who are organized as sole proprietors, single member LLCs, partners in a partnership (including LLCs taxed as…

Stock Market: Outlook for 2018

Before considering what might be ahead in 2018, perhaps it’s worth looking back to acknowledge that 2017 was a banner year—both a great year for U.S. stocks, as well as the year when international markets turned a corner. In the United States, earnings for 2017 have been solid and growth expectations are on an upswing. Worldwide, gross domestic product growth…

Tax Reform Brings Changes to Meals, Entertainment, Club Dues and Transportation Deductions

By Jennifer Cranford, CPA The 2017 Tax Reform Act, which was signed in to law December 22, 2017, includes a number of changes in deductibility of meals, entertainment costs, club dues, and employee transportation benefits as of January 1, 2018. Business meals should continue to be 50% deductible assuming the meals meet the long-standing business purpose requirements and documentation and…