Gordon Keeter Nichols CPAs

06/03/2026

If you operate a sole proprietorship or a partnership where you and your spouse are the only partners, you might want to consider employing your child this summer. In addition to providing valuable work experience and enabling your child to start contributing to a tax-advantaged IRA, you can save payroll taxes. Wages you pay to your children under age 21 are exempt from FUTA tax. If they’re under age 18, their wages are also exempt from F**A tax. In addition, because wages paid to your child are considered a business expense, you can reduce your self-employment income (and, thus, reduce your income tax). Your child will likely be subject to less (if any) income tax.

06/02/2026

Thinking about donating a painting, sculpture or other work of art to charity? Read this first to help ensure your tax deduction will be what you expect.

Learn how donating artwork to charity can impact your tax deduction. Discover IRS rules on appraisals, AGI limits, related-use requirements, and documentation needed to maximize your charitable contribution benefits.

06/01/2026

Home renovations can improve a residence’s comfort, functionality, aesthetics and resale value. They might also provide tax benefits. You may be able to deduct mortgage interest on debt used to substantially improve your home. Certain improvements can also increase your tax basis, potentially reducing taxable gain when you sell. Medically necessary modifications may qualify as deductible medical expenses, subject to limits. And if you overlooked claiming now-expired credits for qualifying energy-efficient home improvements you made in 2025, an amended return may be worth considering. Contact us to talk taxes before or after a home renovation.

05/29/2026

Hold on to tax records this long in the event the IRS audits you.

05/29/2026

Infographic: Are you liable for the alternative minimum tax?

05/28/2026

Debt forgiveness may result in taxes owed. Under federal tax law, gross income generally includes cancellation of debt income when a lender forgives all or part of a debt. However, there are exceptions. Debt discharged as part of a Chapter 7 or Chapter 13 bankruptcy case is generally excluded from income. Also, it may be nontaxable if you can prove to the IRS that you were insolvent when your lender canceled your debt. In addition, forgiveness of certain student loans and cancellation of debt due to the borrower’s death or total disability are usually nontaxable. After a debt is canceled, your lender may send you a Form 1099-C detailing the amount. Contact us if you have questions.

05/27/2026

Small business owners, beware: Tax identity theft is a costly, ongoing threat. Learn the warning signs and ways to fortify your defenses.

Protect your business from tax identity theft by understanding EIN fraud, payroll scams and cybersecurity risks that can lead to IRS issues and financial damage.

05/26/2026

Do you have both traditional and Roth accounts within your employer’s 401(k)? If so, and you’re willing and able to pay taxes now — and you’d prefer not to pay them in retirement — consider an in-plan rollover. That is, your plan may allow you to transfer funds from your traditional 401(k) account into your Roth 401(k) account. Such rollovers can be a relatively quick way to move more savings to the Roth side, and they don’t count toward your annual 401(k) contribution limit. But the rollover amount is generally taxable at your ordinary income rate to the extent it consists of pretax funds. Contact us for help finding the right balance between traditional and Roth 401(k) retirement savings.

05/25/2026

A change in state residency has tax implications beyond income taxes. Find out what tax factors to look at before relocating.

Moving to a new state? Learn the tax implications of relocation, including income, property, sales, and estate taxes, plus tips for establishing residency.

05/23/2026

If you’re currently evaluating financial aid awards for your college-bound child, it’s important to understand what types of assistance are taxable. In general, free-money scholarships, fellowships, grants and tuition “discounts” are nontaxable. However, they must be used according to their designations — for example, for tuition, books and educational materials. Work-study compensation (even if referred to as “scholarships” or “fellowships”), on the other hand, must be reported on the student’s federal income tax return. But, depending on total income and other factors, your child may not owe tax on these amounts. Contact us for advice on paying for college.