These are the Top 200 industries primed for growth (with risks) using the projected Compound Annual Growth Rate (CAGR) from 2021-2026.

​In addition to the CAGR numbers, this data can be sorted and filtered by total industry revenue, number of businesses, growth trajectory and risk score to explore possible industries that could be in need of additional accounting and advisory services due to continued growth yet elevated risk.

To download the information please follow this link where you can submit your information and get the report.

www.accountingtoday.com/top-200-growth-industries-2021-to-2026

Industry 

In very simple terms, a like-kind exchange is a tax-deferred transaction that allows one asset to be swapped with another, similar asset without generating a capital gains tax liability from the sale of the first asset.

Prior to the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS permitted the exchange of certain personal property, intellectual property and intangible property as long as that property was then exchanged for other personal property. The TCJA narrowed the scope of Internal Revenue Code Section 1031 like-kind exchanges to the exchange of real property that is of the same nature and character, even if it differs in grade or quality. It defined real property as "land and improvements to land, unsevered natural products of land, and water and air space superjacent to land."

Primary residences, inventory, corporation common stock and indebtedness or notes are specifically excluded from Section 1031 like-kind exchanges. In addition, exchanges of machinery, equipment, intellectual property, intangible business assets, etc., generally do not qualify as real property exchanges. Exceptions to this rule include certain exchanges of stock in mutual ditch, reservoir or irrigation companies.
The result is that any personal property transferred in a Section 1031 like-kind exchange is treated as if it were bought and sold in separate transactions, and any capital gains on the sale cannot be deferred. Practically speaking, this means every distinct asset included in the exchange must be analyzed separately from every other asset to determine whether it meets this definition.

As might be expected, the rules are complex. A qualifying exchange must adhere to the following rules:
​

• Both properties must be in the United States.
• The taxpayer has 45 days from the date when the sale of the relinquished property closes to identify a potential replacement property and 180 days to acquire that property. The two periods run concurrently, which means the maximum time period for the exchange to be completed is 180 days, not 225 days.
• In an exchange in which the seller does not acquire the new property at the same time he or she relinquishes the old one, sometimes called a delayed exchange, the "seller" of the first property cannot hold the cash until the new property is acquired. A neutral third party, called a qualified intermediary (QI), facilitates the deal. Relatives and any people who have been your agents or employees in the two years preceding the sale of the relinquished property cannot serve as the QI.
• There is no limit to the number of exchanges a taxpayer can make. As long as the laws and regulations are followed, taxpayers can make even sequential like-kind exchanges.
• Federal law defines what constitutes real property for purposes of a like-kind exchange, but state laws mandate how states tax the sale. This may prove important when the sold property is in one state and the purchased property is in another.
• Depending on the properties being exchanged, any previously claimed depreciation may be recaptured and taxed as ordinary income.
• Any cash left over after the property is exchanged may be taxed as partial sales proceeds. This includes monies from a decrease in liabilities or a change in the amount of a mortgage. Usually, such amounts are taxed as capital gains.
• Taxpayers claiming a like-kind exchange must file Form 8824 for the year in which the exchange occurs.
• New legislation is being discussed that may make this strategy less attractive. Anyone considering a like-kind exchange should carefully monitor the developments regarding potential federal tax reform. 

Section 1031 like-kind exchanges can be an excellent way to discharge appreciated property that would generate a high capital gains tax if it were sold. It may also be the best choice in other circumstances, such as if the property would otherwise have been sold at a loss.
This is just of summary of a series of complex provisions. If you think a Section 1031 like-kind exchange is right for you, be sure to get professional advice from the start.

​In COVID Tax Tip 2021-123, the IRS clarifies some of the confusion surrounding the powerful but complex Employee Retention Credit.

The IRS is addressing changes made by the American Rescue Plan Act of 2021 that apply to the third and fourth quarters of 2021.

These changes include:

• Making the credit available to eligible employers that pay qualified wages after June 30, 2021, and before Jan. 1, 2022.
• Expanding the definition of "eligible employer" to include recovery startup businesses.
• Modifying the definition of "qualified wages for severely financially distressed employers."
• Providing that the employee retention credit does not apply to qualified wages considered as payroll costs in connection with a shuttered venue grant or a restaurant revitalization grant.

For business managers who had questions and needed authoritative answers, the IRS is answering various questions about the credit for tax years 2020 and 2021, including:

• The definition of a full-time employee and whether that definition includes full-time equivalents.
• The treatment of tips as qualified wages, and the interaction with the credit for the portion of employer Social Security taxes paid with respect to employee cash tips.
• The timing of the qualified wages deduction disallowance and whether taxpayers who already filed an income tax return must amend that return after claiming the credit on an adjusted employment tax return.
• Whether wages paid to majority owners and their spouses may be treated as qualified wages.

​
Reporting clarifications

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their employment tax returns, generally, Form 941 Employer's Quarterly Federal Tax Return, for the applicable period. If a reduction in the employer's employment tax deposits is not sufficient to cover the credit, certain employers may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

This is just a summary of a series of detailed and technical provisions. The IRS has provided all the details in Notice 2021-49. Managers should consult with a qualified tax professional to make sure they get all the benefits they're entitled to without inadvertently violating the provisions.

​The big question is whether people are more or less productive when working from home. Many external factors go into this evaluation, such as home-based working conditions and reliable access to company systems and programs. Perhaps the most critical issue is the disconnect between managers who expected the virtual environment to mimic the office environment and actually managing remote employees. Some managers felt they had to micromanage staff to make sure they were working, which turned into a workday filled with videoconferencing and messaging on various platforms. That strategy turned out to be distracting.  

But as the virtual environment evolved, best practices emerged from the chaos. Managers began to understand how important it is to institute policies incorporating these 10 areas:

In my opinion it's a pretty big failure considering that only 36.3% of applications were funded, and only 39.6% of the funds requested making it to those who needed it most.

TAGS

​The Child and Dependent Care Tax Credit is available to parents and caregivers who are either working or looking for work and who claim dependents on their tax return. The credit is available to those who care for children under age 13 or a spouse or dependent of any age who is physically or mentally incapable of caring for himself or herself.

The CTC was created in 1997 and has been expanded several times since, most recently in 2020. The COVID-19 pandemic profoundly affected how, where and when people work. The incredible disruption this caused affected people's incomes and livelihoods, and the federal government responded by approving pandemic relief legislation that included changes to the child care tax credit.

The latest of these changes were mandated by the American Rescue Plan Act (ARPA), which increased the maximum amount of eligible expenses as well as the maximum percentage of eligible expenses for which the credit may be taken. ARPA also modified how the credit is phased out for higher earners. 

Perhaps the most important changes for eligible taxpayers planning to claim this credit for 2021 is that

• (1) the credit is refundable and
• (2) they can receive 50% of their credit in 2021 rather than waiting until after they file their 2021 taxes in 2022.

It is important to note that these changes are available only for 2021 unless Congress extends them.

​Who Can Claim the Credit?

The advance credit is phased out or eliminated completely for taxpayers whose AGI is above $150,000 for married taxpayers filing jointly and qualifying widows or widowers, $112,500 for those who file as head of household, and $75,000 for single filers or married taxpayers filing separately.

The IRS will make the advance payments automatically for July, August, September, October, November and December. Eligible taxpayers do not have to enroll.

You can claim the potentially lucrative federal Work Opportunity Tax Credit (WOTC) for some of the wages paid to the individual who is part of a targeted group.
 
Here’s what you need to know to make the WOTC a tax saver for your business
 
WOTC Basics
The credit generally equals 40 percent of qualified first-year wages paid to an eligible employee, up to a maximum wage amount of $6,000.
The maximum credit is $2,400 (40 percent x $6,000).
 
The credit is reduced to 25 percent of qualified first-year wages for an employee who completes at least 120 but fewer than 400 hours of service.
In this situation the maximum credit is $1,500 (25 percent x $6,000).
 
You can claim the WOTC only if you hire a member of a targeted group. Targeted groups include the following:

• Qualified IV-A recipients
• Qualified veterans
• Qualified ex-felons
• Designated community residents
• Vocational rehabilitation referrals
• Qualified summer youth employees
• Qualified supplemental nutrition assistance benefits recipients
• Qualified SSI recipients (anyone who is certified by the designated local agency as receiving Supplemental Security Income benefits under Title XVI of the Social Security Act for any month ending within the 60-day period ending on the hiring date)
• Long-term family assistance recipients
• Qualified long-term unemployment recipients

 
This link contains links to the names, addresses, phone and fax numbers, and email addresses of the WOTC coordinators for each of the SWAs.
 
Exceptions to the General Rule on Credits

There’s a higher limit of $12,000 for first-year wages paid to a qualified veteran who is entitled to compensation for a service-connected disability and was discharged or released from the military within the past year.

• The maximum credit is $4,800 (40 percent x $12,000).

 
There’s an even higher limit of $14,000 for first-year wages paid to a qualified veteran who was unemployed for at least six months in the prior year.

• The maximum credit is $5,600 (40 percent x $14,000).

 
If a qualified veteran both has a service-connected disability and was unemployed for at least six months in the prior year, the limit for first-year wages is $24,000.

• The maximum credit is $9,600 (40 percent x $24,000).

 
The WOTC for a long-term family assistance recipient equals 40 percent of qualified first-year wages, up to a maximum wage amount of $10,000.

• ​The maximum credit is $4,000 (40 percent x $10,000). 

In addition, for long-term family assistance recipients, the WOTC can be claimed for 50 percent of qualified second-year wages, up to a maximum wage amount of $10,000.

• The maximum second-year credit is $5,000 (50 percent x $10,000) and a maximum combined credit for the two years of $9,000 ($4,000 + $5,000).

 
The WOTC for a qualified summer youth employee (a 16-year-old or 17-year-old who lives in an empowerment zone) equals 40 percent of first-year wages paid during any 90-day period between May 1 and September 15, up to a maximum wage amount of $3,000.

• The maximum credit is $1,200 (40 percent x $3,000).

​If you would like my help with the WOTC, please don’t hesitate to contact us at info@ramlcpa.com​.

The need for innovation and creativity is not going away now that businesses and workplaces are opening up again. Business leaders need to consider how they can continue encouraging these traits as they navigate to a new normal. One way to accomplish this is by ensuring your business is a psychologically safe space where employees can feel free to be themselves, be right or wrong, and present out-of-the-box ideas without feeling threatened or diminished.
A psychologically safe workplace nurtures this type of environment. As defined by Amy Edmondson, a professor at Harvard Business School, psychological safety is the shared belief that the team is safe for interpersonal risk taking. It is an environment in which:

• Everyone feels safe participating.
• Questions are perceived neutrally, not as "smart" or "stupid."
• Mistakes are treated as learning experiences, not a sign of incompetence.

In other words, psychological safety is embodied in a company culture in which company leaders respect their employees in the same way they want to be respected.
In some ways, the virtual environment we have been living in primed us for this by giving managers and team members a glimpse into each other's lives in ways they could not imagine before the pandemic. The blend of work life and home life made meetings more personal, from the color of paint on the walls to the cat walking over the keyboard. We learned to understand some of the challenges team members were facing while working from home. This understanding can be the basis for the trust and respect needed for psychological safety.
These three strategies can help firm leaders embrace this concept:

1. Remember that everyone's voice is important. Keeping in mind that every member of the team has his or her own personality, perspective, skills and experiences, it is up to leaders to make sure everyone — introverts and extroverts alike — has the opportunity to participate. This can be accomplished by going around the virtual table and giving everyone a turn to speak or by the leader randomly calling on different people.
2. Expect to be treated the same way as any other team member. In a psychologically safe environment, it important for the leader to take criticism and suggestions gracefully. It is hard to feel vulnerable, but leaders need to be able to accept negative feedback as well as positive feedback. For example, suppose the manager wants to proceed immediately with a new vertical, but the team explains the reasons why it would be beneficial to wait six months. With this model, the manager must honestly take the group's opinion into consideration. Then, after evaluating both opinions, the manager needs to thank the team for their input and tell them the key reasons for his or her decision.
3. Communicate. Communication is key to a psychologically safe culture. It is not a do-what-I-say culture. There is no room for intimidation or gossip.

While listening to others and respecting their opinions is important, company leaders are still the ultimate decision makers. The work world we are going back to is not the same as the one we left before the pandemic or the one we will see in the future. Still, showing respect for employees never is wrong.

Curtsey of Industrynewsletters.com