Welcome to Seber Tans, PLC
Choosing the right accounting firm is one of the most important business decisions you will make. Any firm can add up the numbers and tell you where you’ve been, but Seber Tans will help you focus on where you want to go. In Southwest Michigan, the firm that unites professional expertise with creativity and vision is Seber Tans. With a team of experienced professionals on our staff, we can provide the capabilities of a large national organization, plus the personal attention of an independent firm. Clients choose us because we offer much more than off-the-shelf solutions. We will listen, ask questions, and learn all we can about your current situation. From that input, we’ll find creative solutions to help you focus on your opportunities rather than your obstacles. Join us and see why our clients trust us for their accounting, tax, and business advising needs.
The “wash sale” rule: Don’t let losses circle the drain
If you make an ill-fated investment in a taxable account, you may be able to harvest a tax-saving capital loss by selling the losing stock. However, for federal income tax purposes, the “wash sale” rule could disallow your tax loss. A loss from selling stock is disallowed if, within the 61-day period beginning 30 days before the loss sale date and ending 30 days after that date, you buy substantially identical securities. If you have a disallowed wash sale loss, it doesn’t vaporize. Instead, it’s added to the tax basis of the substantially identical securities that triggered the wash sale rule. When you eventually sell, the extra basis reduces your tax gain or increases your tax loss. ... See MoreSee Less
An education plan can pay off for your employees — and your business
Your business can set up a Sec. 127 educational assistance plan to give each eligible employee up to $5,250 a year, free from federal income tax and payroll tax. The plan must meet certain requirements. For example, it must be in writing, for the exclusive benefit of employees. The plan can’t discriminate in favor of highly compensated employees or their dependents who are employees. Also, you can’t offer employees the choice between tax-free educational assistance and other taxable compensation, like wages. You can provide the benefit to your own child if he or she is 21 or older, an employee of the business, not your dependent and not a more-than-5% owner. Contact us to learn more. ... See MoreSee Less
Understanding the “step-up in basis” when inheriting assets
If you inherit assets, they often come with a valuable tax benefit called the step-up in basis. Basis is what the owner paid for an asset, with some possible adjustments. Capital gains tax is due on the sale price minus the basis. At death, many capital assets (such as stocks, real estate and business interests) are generally stepped up to their fair market value (FMV) as of the date of death. The heir’s basis is the FMV, erasing the tax on any gain accumulated during the deceased person’s life. Let’s say your father bought stock many years ago for $50,000. At his death, it’s worth $220,000. Your inherited basis is $220,000. There’s no capital gains tax if you sell immediately for $220,000. ... See MoreSee Less