There are a few things to keep in mind this coming tax year:
- We’ve moved!! But not very far. We’re now in Suite 220 instead of Suite 225, same building, same floor.
- If you have ownership in an LLC (single-member or multi-member) or a Corp (C-Corp or S-Corp) there is a MANDATORY new form to file with the US Financial Crimes Enforcement Network called the Beneficial Owner’s Information Report. This is not part of your tax preparation that we do. We have a walkthrough on the Resources page of our website to help you through the process and it is simple to complete. For existing entities, you need to file this report by the end of the year. For new entities formed in 2024 or later, you have 30 days from your formation to file the report. If there is a change in information (e.g. address, ownership, etc.), you have 30 days to file a change report. Penalties are $500 per day up to $10,000 for not filing by the deadline, so make sure this gets done!
- The Maui wildfires were devastating and our hearts go out to all. The fires also bring some tax challenges. We have a write-up about some of those tax effects a little down this page, so be sure to check there first as a quick guide. If you have other questions, please don’t hesitate to contact us.
- Maui County has joined the other Hawaii counties in adding a ½% increase to the General Excise Tax. If you pass the tax on to clients or customers, be sure to charge 4.712% instead of 4.166%.
- Credits for electric vehicles are extended but are now more confusing. The credit amount is determined by where battery materials come from and the location of the assembly of the battery, with a max credit of $7,500. There is an option to receive the credit at the time of the vehicle purchase, but the credit is reconciled on the tax return, so make sure you qualify or you’ll be paying it back on the tax return! Don’t rely on the info the dealer gives you and please call us to make sure you qualify for any tax credit. Also, you can now get a tax credit for some used EVs bought from a dealer.
- Energy efficient home improvements are back with expanded credits. If you purchase any Energy Star doors, windows, central A/C, etc. keep those receipts.