Bluegrass Professional Associates

Bluegrass Professional Associates Bluegrass Professional Associates provides tax, accounting, payroll and bookkeeping services to indi

Your business can set up a Sec. 127 educational assistance plan to give each eligible employee up to $5,250 a year, free...
05/13/2025

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.

If you’ve recently sold your home and realized a capital gain, you may be able to exclude some or all of the gain from t...
05/07/2025

If you’ve recently sold your home and realized a capital gain, you may be able to exclude some or all of the gain from the sale. To claim the exclusion, you must pass IRS ownership and use tests. During a five-year period ending on the date of sale, you must have owned the home and lived in it for at least two years. If qualified, you may be able to exclude a capital gain of up to $250,000 from your income ($500,000 for married joint filers). Be aware that the exclusion is available only for your main home (not a second home). If you realized a loss on the sale, it’s not deductible. For more information from the IRS: https://bit.ly/3GCMQqz or contact us with questions.

Under a Health Reimbursement Arrangement (HRA), your business sets up and wholly funds a plan that reimburses participan...
05/06/2025

Under a Health Reimbursement Arrangement (HRA), your business sets up and wholly funds a plan that reimburses participants for qualified medical expenses of your choosing. But there are several different types of HRAs. For example, an excepted benefit HRA (EBHRA) limits employer contributions so much that participants’ accounts under the plan are considered “excepted benefits.” This means EBHRAs aren’t subject to certain legal mandates. In 2025, employer-sponsors may contribute up to $2,150 to each participant per plan year. You can, however, choose to contribute less. Other rules apply, and EBHRAs are subject to ERISA and parts of HIPAA. Contact us for more information.

You filed your tax return and breathed a sigh of relief. Then you realize that you forgot to include something important...
05/01/2025

You filed your tax return and breathed a sigh of relief. Then you realize that you forgot to include something important. In general, you can file an amended return and claim a refund within three years after your original return is filed, or two years after paying the taxes, whichever is later. So, if you filed your 2024 tax return and paid the taxes owed on April 1, 2025, you have until April 1, 2028 to amend the return. Math errors might not require filing an amended return, as the IRS may catch and correct such mistakes. However, do file an amendment if there’s a change in filing status, income, deductions, credits or tax liability. Here’s a list of related FAQs: https://bit.ly/42CTcOk

When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the...
04/28/2025

When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the tax code, which governs the treatment of gains and losses. Sec. 1231 assets generally include 1) business real property (including land) that’s held for more than one year, 2) other depreciable business property that’s held for more than one year, 3) intangible assets that are amortizable and held for more than one year, and 4) certain livestock, timber, coal, domestic iron ore and unharvested crops. Gains and losses from selling Sec. 1231 assets receive favorable federal income tax treatment. We can help you plan the timing of gains and losses for optimal tax results.

The optional standard mileage rate used to calculate the tax-deductible cost of operating a business vehicle increased i...
04/26/2025

The optional standard mileage rate used to calculate the tax-deductible cost of operating a business vehicle increased in 2025. The IRS announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck is 70 cents. In 2024, the rate was 67 cents per mile. The standard rate is useful if you don’t want to track actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip. The standard mileage rate is adjusted annually and calculated based on driving costs, including the price of gas. According to AAA, the national average price of a gallon of regular gas on Jan. 17 was $3.11.

Your small business may be eligible for big first-year Section 179 depreciation tax deductions for new and used heavy SU...
04/24/2025

Your small business may be eligible for big first-year Section 179 depreciation tax deductions for new and used heavy SUVs, pickups and vans placed in service in 2025. You must use the vehicle more than 50% for business. The write-off will reduce your federal income tax and self-employment tax bill, if applicable. This tax break is only available for a purchased (not leased) SUV, pickup, or van with a manufacturer’s gross vehicle weight rating above 6,000 pounds. The 2025 limit on Sec. 179 deductions for heavy SUVs $31,300. First-year depreciation deductions for lighter vehicles are subject to smaller depreciation limits of up to $20,400 in 2024. (The 2025 amount hasn’t come out yet.)

In a business context, “concentration” can refer to various aspects of a company’s operations. Examining different types...
04/21/2025

In a business context, “concentration” can refer to various aspects of a company’s operations. Examining different types of concentration may help you spot certain dangers. Take customer concentration, for example. This is the percentage of revenue generated from each customer. Many companies precariously rely on only a few customers to generate most of their revenue. There’s also vendor concentration (the number and types of vendors a business uses), geographic concentration (how the physical location of customers or suppliers affects operations), and investment concentration (how funds are allocated to capital improvements). Contact us for assistance in evaluating any or all of these.

For federal income tax purposes, rental real estate losses are generally considered passive activity losses (PALs), whic...
04/11/2025

For federal income tax purposes, rental real estate losses are generally considered passive activity losses (PALs), which can only be deducted against passive income from other sources. If you don’t have enough passive income, excess PALs are suspended and carried forward to future years. They can be deducted later when you have enough passive income or sell the property. But there’s an exception for real estate professionals. If you qualify, rental losses can be treated as non-passive, allowing you to deduct them currently, regardless of passive income. This can provide a significant tax break if you’re eligible. You may also be eligible for other exceptions. Contact us for help.

Address

2302 Hurstbourne Village Drive, Suite 300
Louisville, KY
40299

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 12pm

Telephone

(502) 456-4513

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