December 2021
Wrapping Up 2021
Year-End Tax Planning
By John Mlynczyk, Partner,
and Kevin Bell, Partner

Year-end tax planning is more challenging than usual this year due to the uncertainty surrounding pending tax legislation that could, among other things, increase top rates for ordinary income, capital gains, and net investment income tax starting next year.

Whether or not tax increases become effective next year, the standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely continue to produce the best results for all but the highest income taxpayers.

Read more about what you should know, including current laws and planning considerations, in this post from the KS Advisor Blog.
From the KS Advisor Blog
FASB Modifies Risk-Free Discount Rate Practical Expedient for Lessees That Are Not Public Business Entities
by Kaitlyn Coburn, Manager

Looking to stay updated on ASU 2021-091, the new lease standard recently issued by the FASB? Read more in this article from the KS Advisor Blog that discusses the risk-free rate practical expedient that companies can elect and the different effective dates depending on whether or not a company has already adopted ASC 842.
Three Types of Holiday Celebrations with Employees
by Amy Delaney, Director of Marketing & Business Development

With many employers still having employees work from home due to COVID concerns, company holiday celebrations may again look different than pre-pandemic times. However, this doesn’t mean that you can’t have festive times with your employees as there are still lots of fun ways to celebrate the holidays. Here are some ideas for activities that you might want to consider for this year.
Five Tips for Setting Up a Reporting Hotline
by Trever Campbell, Senior Manager

Based on studies performed by the Association of Certified Fraud Examiners (ACFE), the number one way that frauds are detected in organizations is consistently through tips. One of the ways you can increase the amount of tips your organization receives is through the implementation of a reporting hotline. Get five tips for setting up an effective hotline in your organization.
Moving Assets from an
S Corporation to a Partnership
by Gunnar Haugen, Senior Manager

From an income tax perspective, business owners often view S corporations and partnerships as fungible forms of doing business. Although both entities generally avoid an entity-level tax by “passing-through” their income to their owners, partnerships often have significant advantages over S corporations. Read more about the potential benefits of using a partnership.
Year-End Reminders
Do you need to file 1099s?
Make sure you know about changes for 2021.

Do you have employees?
Make sure you know the year-end reporting and compliance requirements, and what's changing in 2022.
Reporting Requirements for Cryptocurrency Exchanges
The Infrastructure Investment and Jobs Act of 2021 (IIJA) was signed into law on Nov. 15, 2021. The IIJA includes IRS information reporting requirements that will require cryptocurrency exchanges to perform intermediary Form 1099 reporting for cryptocurrency transactions. Generally, these rules will apply to digital asset transactions starting in 2023.
Emerging Business Leaders Forum
Wondering what you need to know and when for year-end planning?

Want to know about any changes for the upcoming tax season?

Have other questions as you get ready for the end of 2021?

Our newest Emerging Business Leaders Forum takes place online on Thursday, December 16, at 4 pm. Partners Brent Laird, CPA, MST, and Kevin Bell, CPA, will help you get ready and answer your questions about year-end planning.
Feel free to send us your questions ahead of time.

Due to the holidays, the December meeting will be held on the third Thursday of the month instead of the last Thursday of the month.
Meet Kernutt Stokes
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About Kernutt Stokes
 
Kernutt Stokes is a full-service accounting and business consulting firm established in 1945 with offices in Eugene, Bend, Corvallis, and Lake Oswego. Named one of the "100 Best Companies to Work For in Oregon," the firm specializes in privately-held and family-owned companies in construction, healthcare, manufacturing, transportation, and professional services. In addition to core accounting services, the firm provides accounting software consulting, 401(k) plan administration, business valuation, retirement planning, business consulting and other services.
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