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Ken Berry, JD

CPA Practice Advisor Tax Correspondent

Ken Berry, Esq., is a nationally-known writer and editor specializing in tax and financial planning matters. During a career of more than 35 years, he has served as managing editor of a publisher of content-based marketing tools and vice president of an online continuing education company in the financial services industry. As a freelance writer, Ken has authored thousands of articles for a wide variety of newsletters, magazines and other periodicals, emphasizing a sense of wit and clarity.

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Income Tax

How to Maximize Home Office Deductions

It is well-established that you can deduct home office expenses only if certain tax law requirements are met. Notably, no deduction is allowed unless the taxpayer uses the home office regularly and exclusively for business purposes.

Income Tax

To Fight ID Theft, IRS Expands Use of Truncated TINs

As part of its ongoing efforts to deter identity theft, the Internal Revenue Service has issued final regulations on use of truncated Taxpayer Identification Numbers (TINs). The new regulations, which apply to those who furnish and receive payee statements and tax-related documents, generally follow proposed regulations issued last year, albeit with some modifications.

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Benefits

Pensions, Defined Benefit Plans are Still a Good Option for Some

Do you remember those traditional pension plans from days of yore? Although such plans are nowhere near as prevalent as they were back in your grandfather’s day – especially for employers that must cover dozens of employees or more -- there’s still a time and place for the “defined benefit plan.” In fact, this option might be a perfect fit for a small business with just one or just a handful of full-time workers in the fold.

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Benefits

Retirement Plans for Small Businesses: The Keogh Plan Is Not Extinct

In the not-so-distant past, the Keogh plan was the hottest retirement planning commodity around. But like fax machines and VHS recorders, Keoghs are now regarded by many as relics. Nevertheless, this type of plan still might fit the bill for certain sole practitioners.

Benefits

Small Business 401(k) Plans: Not a Nightmare Anymore, But No Fairytale Either

Once upon a time, an entrepreneur with just a handful of employees wouldn’t even think about starting up a 401(k) plan for the business. The administrative costs, as well as the complexity, could turn into a nightmare. But costs have come down in recent years and now the 401(k) is a viable vehicle for an employer of virtually any size.

Benefits

Small Business Retirement Plans: SEPs Take the Easy Way Out

Most of your clients who are small business owners are consumed with their day-to-day operations. They usually don’t have the time, nor the inclination, to devote to administering a qualified retirement plan for employees, even though they also will benefit from it personally. For these harried entrepreneurs, a Simplified Employee Pension (SEP), also called a SEP-IRA, is often the optimal choice of plans.

Benefits

Starting a Qualified Plan for a Small Biz? It’s SIMPLE

SIMPLE. The name says it all. It stands for Savings Incentive Match Plan for Employees, a contrived moniker, but you get the picture. This type of qualified retirement plan, created back in 1996, is designed to provide an easy and convenient retirement plan option for small business operations.

Benefits

Should Your Clients Join the Rush to Roth IRAs?

Although it’s been almost five years since the floodgates were opened, we’re still seeing a steady stream of conversions to Roth IRAs. As long as Congress doesn’t clamp down on the rules, you can expect for this trend to continue.

Firm Management

Federal Court Limits Government Searches of CPA Firm’s Electronic Files

The Second Circuit Court of Appeals has held that federal agents can’t hold onto a CPA’s computer data indefinitely while they sift through the data looking for dirt.

Accounting

Congress and Senate Consider Section 179 Extension - Keep Your Fingers Crossed

Are those generous Section 179 deductions for business clients a thing of the past? Under current law, the maximum deduction is just a fraction of the high-water mark that was allowed prior to its expiration after 2013.

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Income Tax

IRS Trashes Circular 230 Disclaimers

The IRS Office of Professional Responsibility will be sending out letters asking practitioners to stop using disclaimers required under Circular 230 (Regulations Governing Practice Before the Internal Revenue Service).

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Accounting

Summertime Tax Tip #10: Taking Business Clients to the Country Club? That’s Entertainment!

It all has to do with the current tax rules for business entertainment. To be deductible as entertainment that is “associated with” your business, the activity must take place immediately before or after a substantial business discussion. Usually, this means the discussion has to be on the same day as the entertainment, but it could occur either the preceding or following day if the clients are from out of town.