What is

What Is 1244 Stock and How Are Losses Reported?

Section 1244 stock is the first $1 million of stock issued by qualified corporations to individuals or partnerships as described in section 1244 of the IRS code. Losses on 1244 stock can be reported as ordinary losses instead of capital losses upon disposition.

By Liz Smith, CPA, MSTFP July 23, 2024 | Taxes, What is

Stock is ordinarily considered a capital asset, which would result in a capital loss if the stock was disposed of after a decline in value. Being able to take an ordinary loss on disposal of stock results in preferred tax treatment for 1244 stock. The ordinary loss would be claimed by filing Form 4797, and…

Minimum Wage Exemptions & FLSA Overtime Exemptions

By Jennifer Soper July 22, 2024 | Human Resources, What is

Most employers are legally required to pay a certain minimum wage to their employees (at least $7.25 an hour to comply with federal laws) and pay overtime for hours worked over 40 in a work week (at least 1.5 times the regular pay rate). However, the Fair Labor Standards Act (FLSA) provides minimum wage exemptions…

Shopify Magic: Guide to Shopify’s Free AI Tools

By Agatha Aviso July 20, 2024 | Retail, What is

In Shopify’s latest feature release, artificial intelligence (AI) took center stage. So much so that Shopify rolled out a whole suite of free AI-enabled features that are integrated across Shopify’s products and workflows. Known as Shopify Magic, these AI-enabled features are designed to make it easier for the small business owner to start, run, and…

What Is Cash on Hand and How Much Do You Need?

By Danielle Bauter July 18, 2024 | Accounting, What is

Cash on hand refers to the money a business has readily available to access and use and the cash equivalents that can easily be converted to cash within 90 days. By effectively managing your cash on hand, you can ensure your business has the financial flexibility to navigate challenges and capitalize on opportunities. Examples of…

What Is Customer Service Automation? Examples & Solutions

By Lorraine Daisy Resuello July 18, 2024 | Sales, What is

Customer service automation is the process of automatically resolving or responding to customer inquiries without direct human-agent intervention. The best examples of customer service automation features include chatbots, personalized messaging, intelligent routing, and automated customer responses. Adopting this technology centralizes customer information for speedy and efficient service with much less expense. Benefits of Customer Service…

What Is a Sales Order and How Is It Different From an Invoice?

By Danielle Bauter July 17, 2024 | Accounting, What is

A sales order (SO) is a document that confirms the customer’s order and starts the order fulfillment process. When an order is placed, the business must check if it has enough inventory to fulfill it or adequate workforce and supplies to perform the service. If it can accommodate the order, the person in charge should…

What Is Listed Property & Allowable Depreciation

By Liz Smith, CPA, MSTFP July 16, 2024 | Taxes, What is

Listed property consists of items that can be used for business and personal purposes. They include the following categories: Passenger vehicles are defined as any four-wheeled vehicle intended for use on public streets and weighing no more than 6,000 pounds. Equipment designated for entertainment and recreational use, such as photography and audio/visual equipment. Other assets…