Month: July 2021

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News Press Releases Tupelo, MS

Teasler CPA PLLC Merges with Alexander Thompson Arnold PLLC

Alexander Thompson Arnold PLLC
5221 Cliff Gookin Boulevard
Tupelo, MS 38801

FOR IMMEDIATE RELEASE

For more information contact:

Alexis Long, Marketing Director
(731) 427-8571
along@atacpa.net

TEASLER CPA PLLC MERGES WITH ALEXANDER THOMPSON ARNOLD PLLC

Tupelo, Miss. — Regional accounting firm Alexander Thompson Arnold PLLC (ATA) has expanded its presence in Tupelo, Miss. through the acquisition of local firm Teasler CPA PLLC owned by Kate Teasler, CPA, effective July 1, 2021.

ATA has built a presence in Tupelo as a result of a 2017 acquisition of Ashby & Associates PLLC and a 2018 acquisition of Fred Page & Associates P.C. The acquisition of Teasler CPA allows for ATA’s further growth in the Tupelo area. 

“As we continue to grow, it is our top priority to join with firms that embody similar values as ATA,” said ATA managing partner John Whybrew. “Teasler CPA is a natural fit, and we see a bright future for our firm in the Tupelo area.”

Staff member Haley Gilley from Teasler CPA PLLC will join the team at ATA Tupelo and will continue to be the main contact for Teasler’s former clients. Teasler will remain of counsel to the firm.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting.  For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATAES is a comprehensive human resource management agency. 

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
General

Potential Benefits of Section 1202 Continue to Grow

Section 1202 of the Internal Revenue Code is growing in popularity among investors and may become even more valuable in 2022.

Section 1202 allows founders and investors of corporations to exclude up to 100% of their capital gains derived from the sale of qualified small business stock (QSBS) held for more than five years (subject to limitations). Because the gain exclusion percentage for a shareholder depends on the QSBS issuance date, as time goes on more investors are becoming eligible for the full, 100% exclusion—and thus its rise in popularity.

Further, the 2021 Green Book proposes far-reaching changes to the taxation of long-term capital gains, which are taxed at graduated rates under the individual income tax. Today, the highest rate is generally 20% (23.8% including the net investment income tax, if applicable, based on the taxpayer’s modified adjusted gross income (AGI)).

Under the Green Book proposal, long-term capital gains of taxpayers with AGI of more than $1 million would be taxed at ordinary income tax rates to the extent that the taxpayer’s income exceeds $1 million ($500,000 for married filing separately), indexed for inflation after 2022. Currently, the highest rate for individuals is 37% (40.8% including the net investment income tax), though the Green Book also includes a proposal to raise the individual rate to up to 39.6% (43.4% including the net investment income tax).

While reinvestments into Qualified Opportunity Zones, like-kind exchanges for real property (possibly limited going forward), and reinvestment of proceeds into qualified replacement property from sales of corporate stock to an Employee Stock Ownership Plan of 30% or more of the corporation’s outstanding stock provide some deferral opportunities, Section 1202 is the only provision that provides an exclusion opportunity for QSBS. The higher that the capital gains tax rate goes up, the greater the potential tax benefit of utilizing an available Section 1202 exclusion.

Categories
News Press Releases

ALEXANDER THOMPSON ARNOLD RISES ON THE IPA TOP 200 FIRM LIST

Alexander Thompson Arnold PLLC
227 Oil Well Rd.
Jackson, TN 38305

FOR IMMEDIATE RELEASE

For more information contact:

Alexis Long, Marketing Director
731.427.8571
along@atacpa.net

ALEXANDER THOMPSON ARNOLD RISES ON THE IPA TOP 200 FIRM LIST

Jackson, Tenn.– For the seventh consecutive year, Alexander Thompson Arnold PLLC (ATA) has been deemed a top 200 accounting firm in the United States by INSIDE Public Accounting (IPA), an award-winning newsletter for the public accounting profession. ATA increased its standing on the list to 134, two places higher than last year’s ranking of 136.

IPA utilizes net revenues of participating firms as well as the annual IPA Survey and Analysis of Firms to determine the lists of the 100, 200, 300 and 400 U.S.-based firms.

“ATA is regularly working to improve our firm and our reputation in the public accounting world,” said Managing Partner John Whybrew. “This recognition from IPA proves that we are making progress toward the goals we have set for the firm and serve as motivation to keep moving forward.”

IPA, founded in 1987, is published by The Platt Group. The Platt Group publishes both the award-winning INSIDE Public Accounting newsletter and the award-winning National Benchmarking Report, along with other key reports on the profession. The Platt Group assists firms to become more successful through a variety of services.

View the full IPA Top 400 rankings here.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and newly added ATAES is a comprehensive human resource management agency. 

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
Tax

Getting a new business off the ground: How start-up expenses are handled on your tax return

Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number. Entrepreneurs often don’t know that many of the expenses incurred by start-ups can’t be currently deducted. You should be aware that the way you handle some of your initial expenses can make a large difference in your federal tax bill.

How to treat expenses for tax purposes
If you’re starting or planning to launch a new business, keep these rules in mind:

Start-up costs include those incurred or paid while creating an active trade or business — or investigating the creation or acquisition of one. Under the tax code, taxpayers can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs in the year the business begins. As you know, $5,000 doesn’t go very far these days! And the $5,000 deduction is reduced dollar-for-dollar by the amount by which your total start-up or organizational costs exceed $50,000.

Any remaining costs must be amortized over 180 months on a straight-line basis. No deductions or amortization deductions are allowed until the year when “active conduct” of your new business begins. Generally, that means the year when the business has all the pieces in place to start earning revenue. To determine if a taxpayer meets this test, the IRS and courts generally ask questions such as: Did the taxpayer undertake the activity intending to earn a profit? Was the taxpayer regularly and actively involved? Did the activity actually begin?

Eligible expenses
In general, start-up expenses are those you make to: investigate the creation or acquisition of a business, create a business, or engage in a for-profit activity in anticipation of that activity becoming an active business. To qualify for the election, an expense also must be one that would be deductible if it were incurred after a business began. One example is money you spend analyzing potential markets for a new product or service. To be eligible as an “organization expense,” an expense must be related to establishing a corporation or partnership. Some examples of organization expenses are legal and accounting fees for services related to organizing a new business and filing fees paid to the state of incorporation.

If you have start-up expenses that you’d like to deduct this year, you need to decide whether to take the election described above. Record-keeping is critical.

To see how ATA can help grow your emerging business, visit our website. © 2021

Categories
Murray, KY News Press Releases

Alexander Thompson Arnold PLLC Announces Leah Bona is Newest Partner

Alexander Thompson Arnold PLLC
112 Robertson Road North
Murray, KY 42071

FOR IMMEDIATE RELEASE

For more information contact:

Alexis Long, Marketing Director
731-427-8571
along@atacpa.net

ALEXANDER THOMPSON ARNOLD PLLC ANNOUNCES NEW PARTNER

Murray, Ky. — Alexander Thompson Arnold PLLC (ATA) is excited to announce Leah Bona, CPA has been admitted as the newest partner at ATA. Bona is being promoted to partner from her position as senior tax manager at the Murray, Ky. office. Bona joined ATA two and a half years ago after a stint in private accounting.

“Leah has proven her leadership skills in her role at the Murray office,” said John Whybrew, managing partner of ATA. “Her wealth of experience in the accounting industry makes her invaluable to our team. We are excited to see Leah’s career, as well as our firm, further develop through this promotion.”

Bona has over 15 years of experience in public accounting as well as over 10 years of experience in private accounting as a controller and CFO. Her responsibilities at ATA include tax and financial planning, preparation of corporate, business and individual tax returns, governmental and nonprofit auditing and an extensive range of accounting services.

“At ATA, we offer an excellent and diverse range of client services, and I believe there is an incredible future ahead for our firm,” said Bona. “I feel very fortunate to be honored with this exciting career advancement and am very thankful for the support and guidance I have received from the ATA partners and staff throughout my career.”

Bona graduated from Murray State University with a Bachelor of Science in Accounting. She received her Master of Business Administration with an accounting emphasis from Murray State University in 1996.

Bona serves her community on the finance committee at North Fork Baptist Church. She is a member of the Murray-Calloway County Chamber of Commerce and the Murray State Alumni Association. Bona is a member of the American Institute of Certified Public Accountants (AICPA) and the Kentucky Society of CPAs.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATA Employment Solutions is a comprehensive human resource management agency. 

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
Helpful Articles

How Non-Working Spouses Can Contribute to an IRA

Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents.

In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made for nonworking spouses. For 2021, the amount that an eligible married couple can contribute to an IRA for a nonworking spouse is $6,000, which is the same limit that applies for the working spouse.

IRA advantages

As you may know, IRAs offer two types of advantages for taxpayers who make contributions to them. Contributions of up to $6,000 a year to an IRA may be tax deductible. The earnings on funds within the IRA are not taxed until withdrawn. (Alternatively, you may make contributions to a Roth IRA. There’s no deduction for Roth IRA contributions, but, if certain requirements are met, distributions are tax-free.) As long as the couple together has at least $12,000 of earned income, $6,000 can be contributed to an IRA for each, for a total of $12,000. (The contributions for both spouses can be made to either a regular IRA or a Roth IRA, or split between them, as long as the combined contributions don’t exceed the $12,000 limit.)

Boost contributions if 50 or older

In addition, individuals who are age 50 or older can make “catch-up” contributions to an IRA or Roth IRA in the amount of $1,000. Therefore, for 2021, for a taxpayer and his or her spouse, both of whom will have reached age 50 by the end of the year, the combined limit of the deductible contributions to an IRA for each spouse is $7,000, for a combined deductible limit of $14,000. There’s one catch, however. If, in 2021, the working spouse is an active participant in either of several types of retirement plans, a deductible contribution of up to $6,000 (or $7,000 for a spouse who will be 50 by the end of the year) can be made to the IRA of the nonparticipant spouse only if the couple’s AGI doesn’t exceed $125,000. This limit is phased out for AGI between $198,000 and $208,000.

Contact us if you’d like further information about IRAs or you’d like to discuss retirement planning. © 2021