Archives for Newsletter and Updates

Save On Taxes By Hiring Your Child as an Employee

As a parent and business owner, you’re always looking for ways to optimize your finances while providing opportunities for your family. One savvy tax-saving strategy to consider is hiring your child as an employee in your business. You can pay each child you hire up to $14,600 in 2024 without them owing any federal income tax plus your business can deduct those wages as a business expense. Not only does this arrangement provide valuable work experience for your child, but it also offers significant tax benefits for your family. In this article, we’ll explore the advantages of hiring your child
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Categories: Industry News, Newsletter and Updates, and Uncategorized.

WFY Launches WFY Wealth Management

Wright Ford Young & Co. is excited to introduce our new firm, WFY Wealth Management. We’ve partnered with Integrated Partners, a successful nationwide financial planning and registered investment advisory firm, to help lay the foundation for the introduction of WFY Wealth Management. The collaboration begins with Jeff Myers, managing partner at WFY; Paul Saganey, CFP®, founder and president at Integrated Partners; Brad Tedrick, CFA®, CFP®,, the wealth manager at WFY Wealth Management, and Luke Schork, CFP®, joining Tedrick at WFY Wealth Management. Brad Tedrick joins WFY Wealth Management with nearly three decades of expertise and knowledge in the financial services
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Categories: Company News and Newsletter and Updates.

Understanding Section 163(j): A Brief Overview of Business Interest Deductions

Nicole Wiriadi, CPA, MST Tax Director   The Tax Cuts and Jobs Act of 2017 (TCJA) introduced a provision that directly impacted businesses’ ability to deduct interest expenses from their taxable income under Section 163(j) of the Internal Revenue Code. This provision applies to all types of taxpayers, including corporations, partnerships, and individuals, with exceptions. Some of the key provisions of Section 163(j) are as follows: Interest Deductibility Limitation The deduction for business interest expense is generally limited to the sum of 30% of adjusted taxable income (ATI), business interest income, and floor plan financing interest expense. Carryforward of Disallowed
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Categories: Industry News and Newsletter and Updates.

Warning Signs of Aggressive ERC Marketing: A Cautionary Guide for Businesses

As businesses navigate the complexities of economic recovery, government programs like the Employee Retention Credit (ERC) serve as lifelines for financial support. However, with the surge in popularity of these programs, some unscrupulous entities may engage in aggressive marketing practices to exploit businesses seeking assistance. In this article, we will explore the warning signs of aggressive ERC marketing and provide guidance on how businesses can protect themselves from potential pitfalls. Unrealistic Promises: One of the first warning signs of aggressive ERC marketing is the promise of unrealistic benefits. Businesses should be wary of providers claiming to guarantee substantial ERC benefits
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Categories: Industry News and Newsletter and Updates.

WFY Welcomes Five New Hires in January

In January, Wright Ford Young & Co. welcomed five new hires to our audit department and tax department. Allen Song joined our audit department, and Julio Mendoza, Collette Kim, Noah Scruggs, and Felix Tjong joined our tax department. We are thrilled to have these new additions to our firm. Welcome to the WFY team! Allen Song At the beginning of January, Allen Song joined our audit department as our newest Audit Manager. He graduated from Biola University and has been in public accounting for over 9 years. Before joining WFY, Allen previously worked at a nationwide firm. Outside of the
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Categories: Company News and Newsletter and Updates.

The Corporate Transparency Act: New Reporting Requirements

Manny Trelles, CPA Tax Director   In an effort to combat financial crimes, money laundering, and corruption, the Corporate Transparency Act (CTA) was enacted by Congress. This significant piece of legislation brings a new level of transparency to businesses across all industries, especially those that are privately owned. As of January 1, 2024, millions of small businesses must file a Beneficial Ownership Information Report (BOI Report) with the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The required BOI Report includes information about their beneficial owners or those with “substantial control” over the company. Companies created or registered
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Categories: Industry News and Newsletter and Updates.

The Tax Relief for American Families & Workers Act of 2024 (H.R. 7024)

Andrew Abeyta, CPA Tax Manager   Recently, the Senate approved (via an overwhelmingly favorable vote of 40-3) the “Tax Relief for American Families & Workers Act of 2024” which is now with congress for a tentatively scheduled end of January vote.  Below is an outline of the Business Tax Provisions that are set to change as a result of this bill (pending any additional adjustments by congress). Please note that many of these potential tax provisions will expire on December 31, 2025.   CURRENT LAW PROPOSED CHANGE VIA H.R. 7024 BUSINESS INTEREST LIMITATION      IRC 163(j) Large businesses are
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Categories: Industry News and Newsletter and Updates.

WFY Introduces New Director of Business Development

Wright Ford Young & Co. is pleased to announce Byron Culp as our new Director of Business Development. Byron Culp joined Wright Ford Young & Co. in January of 2024 and has been providing his financial expertise for more than two decades. Byron provides financial guidance and solutions throughout the Orange County marketplace, with the personal mission of helping local companies grow. Targeted industries and businesses include wholesalers, distributors, manufacturers, importers/exporters, professional services, medical, waste management, and non-profit organizations, to name a few. Beyond his professional commitments, Byron is deeply involved in community service, serving on the Board of Directors
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Categories: Company News and Newsletter and Updates.

WFY Announces Nancy Van Lanen as New Estates & Trusts Tax Partner

Wright Ford Young & Co. is pleased to announce Nancy Van Lanen as our new Estates & Trusts Tax Partner. The firm provides tax, audit, estate & trust, and business consulting services to closely held companies, private foundations, family-owned businesses, and high net worth individuals. Nancy Van Lanen joined Wright Ford Young & Co. in November of 2020 as the Estates & Trusts Tax Director. Nancy has over 20 years of experience in tax compliance. She has extensive expertise providing high net worth clients and business owners with tax consulting, planning, and compliance for trusts, estates, and gifting. Prior to
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Categories: Company News and Newsletter and Updates.

ASU 2016-13 Current Expected Credit Loss Effective for Private Companies in 2023

  Carissa DeLuca, CPA, CFE Audit Manager   ASU 2016-13 Financial Instruments-Credit Losses, which covers the Current Expected Credit Loss model (also known as CECL), is effective for private companies for years beginning after 12/15/2022. The accounting standard is not just applicable to mortgage banks, but can also impact trade receivables, loan receivables and reinsurance receivables and more for companies in all industries. Previously, US GAAP required an “incurred loss” methodology for credit losses and loss recognition once probable. Under the old method, historic loss percentages were a common and appropriate method of measurement of credit losses. CECL will require
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Categories: Company News, Industry News, and Newsletter and Updates.