Generally, the IRS has three years to audit a tax return, from the later of the due date of the return, or the date the return is filed. But many exceptions exist that make it prudent to keep financial records even longer. Some states also...
Legal, Retirement, Taxes / 22.04.2024
IS YOUR BUSINESS CLOSING? HERE ARE YOUR FINAL TAX RESPONSIBILITIES
Businesses shut down for many reasons, including the owner’s retirement, an expired lease, staffing shortages, partner conflicts and increased supply costs. Closing a business means taking care of various tax obligations that must be met. This article provides a rundown....
Legal, Taxes / 19.04.2024
4 WAYS CORPORATE BUSINESS OWNERS CAN HELP ENSURE COMPENSATION IS “REASONABLE”
Owners of incorporated businesses know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are...
Taxes / 05.04.2024
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2024....
Legal, Retirement, Taxes / 29.03.2024
RETIREMENT SAVING OPTIONS FOR YOUR SMALL BUSINESS
Business owners who wish to set up a retirement plan for themselves and their employees may be worried about the financial commitment and administrative burdens involved. This article looks first at a “simplified employee pension” (SEP). Small business owners who establish and contribute to...
Businesses that are seeking to hire should be aware of a valuable tax credit for hiring individuals from one or more targeted groups. Employers can qualify for the Work Opportunity Tax Credit (WOTC), which is worth as much as $2,400 for most eligible employees ($4,800,...
Insurance, Legal, Retirement, Taxes / 18.03.2024
HAVE YOU RECENTLY REVIEWED YOUR LIFE INSURANCE NEEDS?
At one time, life insurance played a much bigger role in estate planning than it does now. That’s because life insurance was needed to pay estate tax, which affected more people than it does now. With the federal gift and estate tax exemption now at...
Legal, Taxes / 15.03.2024
THE CHILD TAX CREDIT IS STILL AVAILABLE
Parents know that raising children is expensive. Although some of the enhancements of the Child Tax Credit (CTC) have expired, the credit is still available for eligible parents of children under age 17. Plus, there’s still time for taxpayers to claim the CTC on...
Legal, Retirement, Taxes / 26.02.2024
THERE MAY STILL BE TIME TO LOWER YOUR 2023 TAX BILL
Taxpayers preparing to file tax returns for 2023 may still have an opportunity to lower their tax bills. Those who are eligible can make tax-deductible contributions to traditional IRAs right up until this year’s April 15 tax-filing deadline, and benefit from the tax savings on...
Legal, Taxes / 19.02.2024
TRACKING DOWN DONATION SUBSTANTIATION
To support a charitable deduction, taxpayers need to comply with IRS substantiation requirements. But what if the taxpayer never receives a letter from the charity substantiating a donation? This article explains the rules....
Legal, Taxes / 12.02.2024
HOW TO SECURE A TAX BENEFIT WITH THE QBI DEDUCTION
The qualified business income (QBI) deduction, authorized by the Tax Cuts and Jobs Act (TCJA), is available to owners of pass-through entities — such as S corporations, partnerships and limited liability companies (LLCs) — as well as self-employed individuals. This article highlights how the QBI...
Legal, Taxes / 09.02.2024
TRAVELING FOR BUSINESS IN 2024? WHAT’S DEDUCTIBLE?
For employers and their employees traveling for business this year, there are a number of considerations to keep in mind. Under the tax law, in order to claim deductions, certain requirements for out-of-town business travel within the United States must be met. The rules apply...
Legal, Taxes / 29.01.2024
THE ADVANTAGES OF USING AN LLC FOR YOUR SMALL BUSINESS
If a small business is operated as a sole proprietorship, the owner may have thought about forming a limited liability company (LLC) to protect his or her assets. Or, if the owner is launching a new business, he or she may want to know what...
Legal, Taxes, Technology / 26.01.2024
ONE REASON TO FILE YOUR 2024 TAX RETURN EARLY
The IRS will soon announce the opening of the 2023 individual income tax return filing season. Even for taxpayers who don’t typically file until much closer to the April 15 deadline (or file for an extension), it’s a good idea to file earlier this year....
Inheritance, Retirement, Taxes / 22.01.2024
APPRAISALS AREN’T JUST FOR BUSINESS ANYMORE
Anyone in the process of making a retirement or estate plan, or who intends to donate property to charity, needs to know the value of their assets. For many hard-to-value items — such as closely held business interests, real estate, art or collectibles — an...
Many businesses are eligible for current tax write-offs for certain equipment purchases and building improvements. These write-offs can do wonders for cash flow, but whether to claim them isn’t always an easy decision. In some cases, there are advantages to choosing the regular depreciation rules....
Taxes / 12.01.2024
TAX CALENDAR
This calendar notes important tax deadlines for the first quarter of 2024....
Legal, Taxes / 25.12.2023
3 STRATEGIES FOR HANDLING ESTIMATED TAX PAYMENTS
Self-employed individuals, and those with income from interest, rent, dividends and other sources, generally must pay estimated tax payments throughout the year. Mishandling these payments could trigger penalties. This brief article offers three strategies for getting it right, and a reminder that the next due...
Legal, Retirement, Taxes / 18.12.2023
CONSIDER THE FLEXIBILITY OF A SELF-DIRECTED IRA
Traditional and Roth IRAs can be relatively “safe” retirement-saving vehicles, depending on what they’re invested in. But one drawback is that they limit the account owner’s investment choices. A self-directed IRA provides more flexibility in investment choices but comes with greater risk as well. ...
Growth, Legal, Taxes / 15.12.2023
EDUCATION BENEFITS HELP ATTRACT, RETAIN AND MOTIVATE YOUR EMPLOYEES
One popular fringe benefit that an employer can offer is an education assistance program that allows employees to continue learning, and perhaps earn degrees, with financial help from the employer. A business can attract, retain and motivate employees by providing these benefits so that team...
Legal, Taxes / 11.12.2023
USE THE TAX CODE TO MAKE BUSINESS LOSSES LESS PAINFUL
Whether a business is new or established, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations....
Insurance, Legal, Retirement, Taxes / 27.11.2023
IS DISABILITY INCOME TAXABLE?
Many Americans receive disability income, and the question is often asked: Is it taxable? The short answer is: That depends on who paid for it. This article details how and when taxes may apply. A sidebar discusses how much disability coverage an individual may need....
COVID-19, Legal, Taxes / 20.11.2023
HOW TO SECURE A BUSINESS BAD DEBT DEDUCTION
This brief article highlights how businesses may be able to secure bad debt deductions. This tax treatment isn’t automatic. A business must be able to show that the debt in question is worthless. The article explains the ins and outs of claiming a business bad...
Legal, Taxes / 13.11.2023
ONE-TIME THING: IRA to HSA TRANSFERS
Taxpayers who have IRAs and Health Savings Accounts (HSAs) can transfer funds directly from their IRAs to their HSAs, under certain conditions. This is a once-in-a-lifetime transfer, without penalties or taxes, intended to help taxpayers who are hit with high medical bills that exceed the...
For charitable donations of cash and property to be deductible, they must meet certain IRS criteria. This short article discusses some of the basic rules and explains how to determine if the charity is a qualified charitable organization....
Buildings, Legal, Taxes / 27.10.2023
DO YOU RUN A BUSINESS FROM HOME?
Many people who began working from home during the COVID-19 pandemic are still doing so, full or part-time. Business owners who moved their operations to a home office, or at least began performing some work functions there, may be able to claim home office expenses...
Budgeting, Insurance, Taxes / 23.10.2023
THE DEDUCTIBILITY OF MEDICAL EXPENSES
Individual taxpayers may be able to claim medical expense deductions on their tax returns. However, the rules can be challenging, and it can be difficult to qualify. This article offers up five points to keep in mind about the deductibility of medical expenses....
Budgeting, Retirement, Taxes / 16.10.2023
DON’T GET CARRIED AWAY BY A WINDFALL
Receiving a sudden and sizable influx of cash may seem like a dream come true. It can be, but many people get carried away by a windfall and end up in worse financial shape. This article points out some of the pitfalls and how to...
Legal, Taxes / 13.10.2023
STATE TAXES AFFECT BUSINESS SALES TOO
Business owners sometimes decide to put their companies on the market. When doing so, they may focus on the federal tax implications of a sale. But there will be state tax implications, too. This brief article touches on some key issues regarding state taxes....
Taxes / 06.10.2023
TAX CALENDAR
This calendar notes important tax deadlines for the fourth quarter of 2023....
When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can pursue either spouse to collect the entire tax — not just the part that’s...
Budgeting, Legal, Taxes / 18.09.2023
WHICH BUSINESS WEBSITE COSTS ARE DEDUCTIBLE?
Nearly every business needs a website, but it’s not always easy to determine which costs of running one are deductible. Fortunately, there are guidelines, and even IRS guidance, to follow. This article discusses both the hardware and software costs associated with a website....
Budgeting, Legal, Retirement, Taxes / 11.09.2023
PLAN AHEAD FOR HEALTH SAVINGS ACCOUNTS IN 2024
The IRS has released guidance that includes the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs). This article lists the benefits, requirements, and contribution limits of HSAs for 2023 and 2024....
Budgeting / 07.09.2023
SAFEGUARDING YOUR CRITICAL DOCUMENTS
Every adult has a variety of critical documents that should be protected. This brief article discusses the importance of having a dependable safe or bank safe deposit box in which to store key documents, and even cash, in case of a major disaster....
As a result of the current estate tax exemption amount ($12.92 million in 2023), many people are no longer concerned with federal estate tax. This article points out that before 2011, a much smaller dollar amount resulted in many people attempting to avoid estate tax....
COVID-19, Insurance / 14.08.2023
WEIGHING THE PROS AND CONS OF LTC INSURANCE
The COVID-19 pandemic and its aftermath have significantly affected our lives in many ways that are still playing out. For example, the pandemic has served as a reminder of how difficult an unexpected medical crisis may be to manage financially. This article explores the pros...
Legal, Taxes / 07.08.2023
A POSSIBLE TAX QUIRK OF BEING A BUSINESS PARTNER
Business partnerships may include situations that give the partners pause. This article explains that in any given year, the partners may have been taxed on more partnership income than was distributed to them. It notes that the cause of this quirk of taxation lies in...
Budgeting, Legal, Retirement, Taxes / 04.08.2023
COMPILING A MARITAL BALANCE SHEET IN DIVORCE
Divorce is a difficult process for everyone involved. That’s why being clear and organized when it comes to finances can help facilitate the process. The first step is generally to compile a marital balance sheet. This brief article discusses this step and what it involves....
Insurance, Legal, Retirement, Taxes / 28.07.2023
LOST YOUR JOB? HERE ARE THE TAX ASPECTS OF AN EMPLOYEE TERMINATION
Despite the robust job market, some people are still losing their jobs. For those who are laid off or terminated from employment, taxes are probably the last thing they’re concerned about. However, they may face tax implications when personal and professional circumstances change, and there...
Legal / 24.07.2023
FAMILY BUSINESSES MUST BEWARE OF FRAUD
Family businesses make up a huge percentage of companies in the United States and produce much of the country’s gross domestic product. Often defined as companies that are majority owned by a single family with two or more members involved in their management, family businesses...
Inheritance, Legal, Taxes / 17.07.2023
ARE SCHOLORSHIPS TAXABLE?
If your child is awarded a scholarship for college or another type of school, it’s certainly cause for celebration. But parents need to be aware of the potential tax implications. This article explains when a scholarship may be taxable....
Taxes / 10.07.2023
ESTIMATED TAX PAYMENTS: WHO OWES THEM AND WHEN?
Many people earn money during the year but don’t have any, or enough, federal tax withheld from the payments. Or they have taxable income from sources such as interest, dividends, self-employment income or capital gains. If that’s the case, they may need to make estimated...
Taxes / 06.07.2023
TAX CALENDAR
This calendar notes important tax deadlines for the third quarter of 2023....
Growth, Legal, Taxes / 23.06.2023
APPRECIATING THE HELPFUL BALANCE OF BONDS
Stock market and interest rate uncertainty may cause some investors to turn to bonds. This brief article discusses several popular options, including U.S. government savings bonds and corporate bonds....
Legal, Taxes / 16.06.2023
ADOPTING A CHILD? BRING HOME A TAX BREAK TOO
Two tax benefits may be available to offset the expenses of adopting a child. In 2023, adoptive parents may be able to claim a credit against their federal tax for up to $15,950 of “qualified adoption expenses” for each child. That’s a dollar-for-dollar reduction of...
Legal, Taxes / 09.06.2023
THE TAX OBLIGATIONS IF YOUR BUSINESS CLOSES ITS DOORS
Sadly, many businesses have been forced to shut down recently due to the challenges of the economy, including the supply chain. To close a business, various tax responsibilities must be met, preferably with the help of a trusted tax advisor. ...
Legal, Retirement, Taxes / 08.06.2023
IS IT A GOOD TIME FOR A ROTH CONVERSION?
The volatility in the stock market may have caused the value of retirement accounts to decrease. To those with traditional IRAs invested in stocks, a decline may provide a valuable opportunity: that is, taxpayers may be able to convert a traditional IRA to a Roth...
Legal, Taxes / 29.05.2023
CAN INDIVIDUAL TAXPAYERS DEDUCT VEHICLE EXPENSES?
It’s not just businesses that can deduct vehicle-related expenses on their tax returns. Individuals also may be able to deduct them in certain circumstances. Under current law, the deduction is less than it was years ago, although due to the high price of gas, the...
Legal, Taxes / 22.05.2023
BUSINESS BARTERING IS TAXABLE
During these times of high inflation, many cash-challenged businesses have bartered for goods and services instead of paying dollars for them. Companies that get involved in such transactions need to keep in mind that the fair market value of goods they receive is taxable income....
Legal, Taxes / 15.05.2023
3 THINGS TO KNOW AFTER FILING YOUR TAX RETURN
Most people feel a sense of relief after filing their tax returns each year. But even those who’ve successfully filed their 2022 returns with the IRS should still keep some issues in mind. This article discusses three considerations: checking on a refund, filing an amended...
Inheritance, Legal / 11.05.2023
BOLSTER WEALTH MANAGEMENT WITH TRUSTS
Trusts can help affluent individuals and families manage, protect and grow their wealth. But there are a wide variety to choose from, so it’s important to understand the basic concepts behind trusts before choosing one. This article defines trusts and provides an example of how...
In some cases, homeowners move to new residences, but keep their present homes and rent them out. Homeowners who are considering this are probably already aware of the financial risks and rewards of doing so. However, they should also know that renting out a personal...
Spring has sprung — and summer isn’t far off. For businesses that typically hire minors for summer jobs, it’s a good idea to brush up on child labor laws. The U.S. Department of Labor’s Wage and Hour Division recently announced that it’s stepping up efforts...
Taxes / 17.04.2023
BE PREPARED FOR TAXES ON SOCIAL SECURITY BENEFITS
No one likes surprises when filing a tax return. One thing that catches many older people off guard is getting taxed on their Social Security benefits. This article explains how taxpayers can calculate provisional income to determine whether their Social Security income is indeed subject...
Taxes / 10.04.2023
IS YOUR WITHHOLDING ADEQUATE
Many people are distressed to find they owe money when they file their federal tax returns. When that happens, taxpayers might want to change their withholding so that it doesn’t happen again the following year. Another reason to consider adjusting withholding is when a...
Taxes / 06.04.2023
TAX CALENDAR
This calendar notes important tax deadlines for the 2nd quarter of 2023....
Legal, Taxes / 27.03.2023
SECURE 2.0 LAW MAY MAKE YOU MORE SECURE IN RETIREMENT
A new law was recently passed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29,...
A company owner who travels on business, accompanied by his or her spouse, may be able to deduct all the travel expenses incurred by the spouse. However, the rules are restrictive, starting with the requirement that the spouse must be a bona fide employee of...
Budgeting, Inheritance, Insurance, Legal, Taxes / 13.03.2023
HAVE A FOREIGN ACCOUNT? FILE AN FBAR
In an increasingly global society, many taxpayers hold foreign accounts. This article explains the rules regarding who must file a Report of Foreign Bank and Financial Accounts (FBAR) with the government....
Budgeting, COVID-19, Retirement, Taxes / 06.03.2023
RECONSIDERING YOUR PERSONAL EMERGENCY FUND
Back in 2020 when the COVID-19 pandemic first hit, many people’s emergency funds were suddenly put to the test. Now, presumably with the benefit of some hindsight, the financially savvy might want to reconsider their approach to saving. This brief article discusses some key points...
Budgeting, Legal, Taxes / 27.02.2023
THROWING SNOWBALLS AT A MOUNTAIN OF DEBT
It’s common for many people to start the year intending to get out of debt, yet end the year owing just as much, if not more. This brief article explores a debt-reduction approach called “throwing snowballs,” which involves organizing debts from lowest to highest balance...
Buildings, Inheritance, Legal, Taxes / 20.02.2023
MOVING OUT OF STATE? LEARN ALL THE TAX IMPLICATIONS FIRST
Many people might think about moving to another state. However, it’s important to consider the tax ramifications before doing so. This article urges readers to identify all applicable taxes in a destination state ahead of time and recommends learning what the legal requirements are for...
Buildings, Legal, Taxes / 13.02.2023
QUALIFYING FOR THE HOME OFFICE DEDUCTION
Working from home has become the norm for many people in recent years. Now they might be wondering if they can claim the home office deduction for 2022. The short answer is: Only those who are self-employed can claim it. This article delves deeper into...
Buildings, Legal, Taxes / 06.02.2023
PROTECT YOUR BUSINESS WITH METICULOUS RECORDS
Abstract: Running a business requires that strong, supportable records be kept. Every expense that appears on a tax return might have to be defended if the IRS decides to audit the return. And failing to operate in a businesslike manner and keep good records might...
Legal, Taxes / 27.01.2023
6 KEY TAX Q&AS FOR 2023
Right now, taxpayers may be more concerned about their 2022 tax bills than about how to handle their personal finances in the new year. However, as they deal with their annual tax filing, it’s a good idea to also familiarize themselves with pertinent tax-related amounts...
Legal / 20.01.2023
ARE YOU AT RISK FOR INVESTMENT FRAUD?
Many perpetrators of investment fraud know how to push the right psychological buttons to entice their “marks” to buy worthless or nonexistent securities. Would-be investors can mitigate the risks by asking a few questions, performing some research and consulting with trusted advisors. ...
Inheritance, Retirement / 13.01.2023
ARE YOU AT RISK OF RETIREMENT PLAN LEAKAGE?
Generally, the term “leakage” has negative connotations. So, it’s not surprising that the same is true in the context of retirement planning, where leakage refers to pre-retirement early withdrawals from a retirement account. A business owner who sponsors a qualified retirement plan might say, “Well,...
Legal / 06.01.2023
TAX CALENDAR – Jan 2023
January 17 – Individual taxpayers’ final 2022 estimated tax payment is due. January 31 – Employers must file 2022 Forms W-2 (“Wage and Tax Statement”) with the Social Security Administration and provide copies to their employees. Employers must file (paper or electronic) 2022 Forms 1099-NEC (“Nonemployee...
The IRS generally begins accepting the previous year’s individual tax returns in late January. So, it’s time for taxpayers to start thinking about getting their tax returns prepared. Here are quick tips taxpayers can use to speed tax processing and avoid hassles....
Inheritance, Legal, Taxes / 30.12.2022
TWO ESSENTIAL DOCUMENTS TO PROTECT YOUR ESTATE
Estate planning isn’t just about what happens to a person’s assets after death. It’s also about protecting one’s family during his or her lifetime. This article discusses two estate planning documents that are essential for everyone: a living will and a health care power of...
Depreciation, Legal, Taxes / 23.12.2022
HAVE YOU CONSIDERED A COST SEGREGATION STUDY?
Because of the economic impact of inflation, many companies may need to conserve cash and not buy much equipment this year. As a result, the business may not be able to claim as many depreciation tax deductions as in the past. However, if the company...
Legal, Retirement, Taxes / 16.12.2022
THE PROS AND CONS OF NQDC PLANS
Nonqualified deferred compensation (NQDC) plans allow participants to set aside large amounts of tax-deferred compensation, but they may also pose substantial risks. This article distinguishes NQDC plans from qualified defined contribution plans and discusses the pluses and minuses....
Legal, Taxes / 09.12.2022
WHAT’S YOUR TAXPAYER FILING STATUS?
For many people, December 31 means a New Year’s Eve celebration. However, from a tax perspective, it means thinking about the filing status you’ll use when filing your tax return for the year. The one you use depends partly on whether you’re married on that...
Legal, Taxes / 25.11.2022
DISCOVER THE “HIDDEN” ADVANTAGE OF HSAS
Employers may want to explore the benefits of providing Health Savings Accounts (HSAs) to their workforce. When coupled with a high-deductible health plan, an HSA can be a powerful tool for funding medical expenses on a tax-advantaged basis. This brief article outlines the advantages and...
Legal / 18.11.2022
AS TRAVEL RETURNS, SO DO TRAVEL SCAMS
Many people are traveling again, for business and for pleasure. But as travel demand increases, so does travel-related fraud. This article describes how scam artists seek to use phone calls, emails and other means to take advantage of travelers — and offers tips to help...
The sale of business or trade property can be subject to many rules, depending on the details. Factors that affect the taxability of the sale include the type of property, the primary use and how long the property was held. This article gives a rundown...
Legal, Taxes / 04.11.2022
YEAR-END GIFTS AND THE GIFT TAX ANNUAL EXCLUSION
Many people want to make gifts of cash and stocks to loved ones during the holidays and at year-end. If properly used, the annual exclusion allows you to give to family members and loved ones and reduce the size of your taxable estate, within limits....
What are the tax implications when a taxpayer who owns a vacation home rents it out? The answer depends on various factors, such as the amount of time rented out and the number of days used by the owner. The calculation of taxable income can...
Insurance, Legal / 21.10.2022
CHECK KITING IS NO SMALL MATTER
Despite the business community’s rapid adoption of digital payment methods, some companies continue to rely on paper checks. But there’s a long-standing problem with checks: They make businesses vulnerable to several damaging types of fraud, including check kiting. This article describes how a check kiting...
Legal, Taxes / 14.10.2022
BEWARE OF “WASH SALES” WHEN SELLING SECURITIES
Under the “wash sale” tax rule, if a taxpayer sells stock or securities for a loss and buys back substantially identical stock or securities within the 30-day period before or after the sale date, that loss can’t be claimed for tax purposes. This article provides...
Inheritance, Legal, Retirement, Taxes / 07.10.2022
TALKING ABOUT THE “SANDWICH GENERATION”
The “sandwich generation” includes people who are caught between caring for their aging parents and still raising or helping their children. This brief article encourages those in the middle part of the sandwich to initiate family discussions with the other two parts to discuss tax...
Taxes / 01.10.2022
TAX CALENDAR – 2022 FOURTH QUARTER
October 17 – Personal federal income tax returns for 2021 that received an automatic extension must be filed today and any tax, interest and penalties due must be paid. The Financial Crimes Enforcement Network (FinCEN) Form 114 “Report of Foreign Bank and Financial Accounts” (also...
Insurance, Legal, Retirement, Taxes / 26.09.2022
OFFSET NURSING HOME COSTS WITH POSSIBLE TAX BREAKS
Long-term care — including nursing home care — is expensive. Generally, tax issues aren’t top of mind when someone enters a nursing home. But for those who pay the bills, there may be tax breaks that help offset the cost, such as the ability to...
When businesses receive large amounts of cash or cash equivalents, they may be required to report these transactions to the IRS. Specifically, a payment of more than $10,000 cash in one or more related transactions must be reported on a specific form. Although not all...
Legal, Taxes / 12.09.2022
BUSINESS OWNERS, DIVORCE AND THE POTENTIAL FOR FRAUD
Dividing a marital estate is rarely easy. But it’s made much harder if a divorcing spouse owns a private business and attempts to deflate profits or hide assets. Divorcing spouses — or their attorneys — who suspect this type of deception should engage a forensic...
Legal, Taxes / 09.09.2022
LARGE UNPAID TAX BILLS COULD ENDANGER YOUR PASSPORT
When taxpayers have seriously delinquent tax debt (SDTD), they may face more than financial consequences. That is, the IRS may revoke or limit their passports. How is SDTD defined? In 2022, an unpaid tax bill becomes an SDTD when the assessed federal tax liability exceeds...
Insurance, Taxes / 26.08.2022
WHEN IS EMPLOYER-PROVIDED LIFE INSURANCE TAXABLE?
Employer-provided life insurance can be a great benefit, with the cost of part of it excluded from an employee’s taxable income. Participating employees need to be aware that this exclusion only applies to the first $50,000 in coverage, and the employer-paid cost of the excess...
Legal, Taxes / 19.08.2022
SHOULD YOU DIGITIZE YOUR TAX AND FINANCIAL RECORDS?
Traditionally, important tax and financial records have been stored as hard copies in desk drawers, filing cabinets and safe deposit boxes. These days, it has become increasingly popular and easy to digitize documents and store them electronically. This article explores the advantages and risks of...
Inventory is expensive, so it needs to be as lean as possible without compromising revenue and customer service. This article provides some suggestions to help businesses trim the fat from inventory and some useful inventory ratios for benchmarking and evaluating product mix....
A good family budget should be simple yet comprehensive. As this brief article explains, this objective can be accomplished by addressing both the near term (such as day-to-day items) and the long term (such as college education and retirement)....
Business owners may be wondering whether alternative energy technologies can help them manage their business energy costs. A valuable federal income tax benefit — in the form of a business energy credit — applies to the acquisition of many types of alternative energy property. The...
Individuals who plan to transfer real estate, a family business or other assets that are expected to appreciate dramatically in the future may want to consider an installment sale. This option may provide benefits, including the ability to freeze asset values for estate tax purposes...
COVID-19, Taxes / 22.07.2022
A TAX BREAK FOR EDUCATORS GETS AN UPDATE
When teachers are setting up their classrooms for the new school year, it’s not uncommon for them to pay for a portion of their classroom supplies out-of-pocket. A special tax provision allows them to recoup some of the cost at tax time. In light...
Insurance, Taxes / 11.07.2022
MEDICARE PREMIUMS MAY LOWER YOUR TAXES
Americans who are 65 and older qualify for basic Medicare insurance, but they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive — especially for a married couple with both spouses paying them. One aspect...
Taxes / 08.07.2022
TAX CALENDAR
This calendar notes important tax deadlines for the third quarter of 2022....
Legal, Taxes / 24.06.2022
CAN YOU DEDUCT THE COSTS OF A SELF-MANAGED PORTFOLIO?
Do you have significant investment-related expenses, including payment for financial service subscriptions, home office maintenance and clerical support? Under current tax law — specifically the 2017 Tax Cuts and Jobs Act — these expenses aren’t deductible through 2025 if they’re considered investment expenses to produce...
Legal, Taxes / 17.06.2022
NONWORKING SPOUSES MAY STILL CONTRIBUTE TO AN IRA
Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It...
Despite a seemingly endless period of COVID-19 setbacks, last year the country experienced a large increase in new businesses launched. The latest figures available from the U.S. Census Bureau (June 2020 through June 2021) show that business applications rose 18.6%. Entrepreneurs often don’t know that...
Legal, Taxes / 03.06.2022
HELP PREVENT FINANCIAL SCAMS AIMED AT OLDER PEOPLE
No matter the season, scam artists look for new victims, including those who would pick the pockets of older people in search of money and financial data. This article offers seven ways to help prevent elder financial abuse and fraud....
Legal, Taxes / 27.05.2022
SENDING THE KIDS TO DAY CAMP MAY BRING A TAX BREAK
Among the many challenges of parenthood is what to do with the kids when school lets out. Parents who choose to send a child to day camp may qualify for a valuable tax break: that is, the child and dependent care credit. This article explains...
Taxes / 20.05.2022
TO GET AN “EARLY” REFUND, ADJUST YOUR WITHHOLDING
Everyone loves a juicy tax refund, but why wait to receive the money? By adjusting one’s withholding and/or estimated tax payments, a taxpayer can enjoy that money throughout the year. This article lists some circumstances under which adjustments are particularly advisable and explains how to...
Legal, Taxes / 13.05.2022
AFTER FILING YOUR TAXES, WHAT RECORDS CAN YOU TOSS?
Taxpayers who have filed their 2021 tax returns may be eager to start clearing out some tax-related paper clutter. Paring down is a good idea, as long as essential records that may be needed in the event of an IRS audit are kept. Some documents...
Legal, Retirement, Taxes / 06.05.2022
HIRING YOUR MINOR CHILDREN FOR SUMMER JOBS
Business owners may be able to hire their minor children this summer and get tax breaks and other nontax benefits. While owners save on payroll taxes and lower some costs, the kids also benefit. They can gain on-the-job experience, learn practical skills and at the...
Legal, Taxes / 29.04.2022
COULD YOU BE HIT WITH THE TRUST FUND RECOVERY PENALTY?
There’s a harsh tax penalty that business owners could have to pay personally if they own or manage a business with employees. It’s called the Trust Fund Recovery Penalty and it applies to the Social Security and income taxes required to be withheld by a...
Buildings, Legal, Taxes / 22.04.2022
TAKING CASUALTY LOSS TAX DEDUCTIONS IS NOW HARDER
In recent months, some Americans have been victimized by severe storms, flooding, wildfires and other disasters. No matter where someone lives, an unexpected disaster may cause damage to his or her home or personal property. Before the passage of the Tax Cuts and Jobs Act,...
Inheritance, Legal, Taxes / 15.04.2022
SHIELD YOUR LIFE INSURANCE FROM FEDERAL ESTATE TAX
Individuals who have a life insurance policy probably want to ensure that the benefits their families will receive after their deaths aren’t included in their estates. That way, the benefits won’t be subject to the federal estate tax. This article discusses the ins and outs...
Business owners who have been audited by the IRS are likely aware that the process may be stressful. It might help to understand what IRS auditors know about the business’s industry. IRS examiners generally do research on a specific industry and on issues on a...
Legal, Taxes / 01.04.2022
TAX CALENDAR – 2ND QUARTER 2022
This calendar notes important tax deadlines for the second quarter of 2022....
Legal, Taxes / 25.03.2022
SLIM YOUR 2021 TAX BILL BY FATTENING YOUR IRA
It may not be too late to lower your 2021 tax bill. Qualified individuals can still make deductible contributions to traditional IRAs until the tax filing date of April 18, 2022, and claim the deduction for 2021. This article provides details, including alternate strategies....
Legal, Taxes / 18.03.2022
HIRING? YOU MAY BE ELIGIBLE FOR A VALUABLE CREDIT
Business owners who intend to hire should be aware of a recent law that has extended through 2025 a valuable credit to those that hire members of certain targeted groups. This article provides the limits and other details of the Work Opportunity Tax Credit and...
It’s an awful feeling to learn that your credit or debit card has been used fraudulently. Whether you’re liable for charges typically depends on the type of card, whether you still possess the card and when the card issuer is alerted. This article provides further...
Legal, Taxes / 04.03.2022
ACT FAST AND YOU MAY AVOID FORFEITING FSA FUNDS
An employer-sponsored flexible spending account allows participants to pay health care costs with pre-tax dollars and be reimbursed, tax-free. Unused funds at year-end may be forfeited unless the plan includes one of two exceptions. In 2021, the IRS added some items to the list of...
Legal, Taxes / 25.02.2022
GET MORE WORMS BY FILING YOUR TAXES EARLY
They say the early bird gets the worm. Early federal income tax filers may get a couple worms. This article discusses two benefits to filing early. A sidebar addresses the idea of not filing a 2021 tax return until one’s delayed 2020 tax refund is...
COVID-19, Legal, Taxes / 18.02.2022
3 FINANCIAL LESSONS OF THE PANDEMIC
COVID-19’s rapid spread and the economic havoc that followed are vivid reminders of how unpredictable and volatile the broad economy — and each family’s personal finances — can be. This article discusses three financial lessons that may be learned from the pandemic....
People with aging parents may worry about whether they could be held financially responsible for their parents’ nursing home bills if the parents can’t afford to pay them. This article explores filial responsibility laws, which are rarely enforced, and Medicaid’s estate recovery process....
Legal, Taxes / 04.02.2022
BUSINESSES CAN STILL DEDUCT 100% OF RESTAURANT MEALS
Business owners should remember that the 50% deduction limit for certain meals remains suspended in 2022. That means companies can deduct 100% of the cost of business-related, restaurant-provided meals. This brief article has the details....
Legal, Taxes / 28.01.2022
HANDLE RETIREMENT PLAN ROLLOVERS WITH CARE
Because of the COVID-19 pandemic and other reasons, job upheaval has become common among Americans. If you’ll soon be changing employers, you should handle your retirement plan carefully. This article outlines the four basic options for plan rollovers....
Depreciation, Legal, Taxes / 21.01.2022
COULD YOUR COMPANY USE A HEAVY SUV?
Many businesses need to invest in heavy sport utility vehicles (SUVs) to transport equipment and provide timely services. Fortunately, they may be able to claim valuable tax deductions for the purchases. This article provides an overview of the tax rules and benefits for SUV purchases....
Legal, Taxes / 14.01.2022
TRACKING DOWN DONATION SUBSTANTIATION
To support a charitable deduction, taxpayers need to comply with IRS substantiation requirements. But what if you never receive a letter from the charity substantiating a donation? This article explains the rules and notes a valuable tax deduction....
Legal, Taxes / 07.01.2022
IMPOSTER FRAUD TARGETS MILITARY MEMBERS AND VETS
According to the Federal Trade Commission, veterans lost approximately $60 million to fraud in 2020. Among the greatest fraud threats to this group is “imposter” fraud. This brief article defines this type of fraud and offers suggestions on how to avoid falling victim...
Legal, Taxes / 01.01.2022
TAX CALENDAR
This calendar notes important tax deadlines for the first quarter of 2022....
Budgeting, Legal, Taxes / 24.12.2021
BUDGETING FOR BABY
Babies bring joy and excitement. They also bring substantial adjustments to the family budget! This article discusses a couple of ways to pacify the challenge: checking insurance and reviewing tax breaks. A sidebar advises starting a college fund as early as possible....
Legal, Taxes / 18.12.2021
GIG WORKERS: HERE COMES AN ESTIMATED TAX DEADLINE
Taxpayers who are gig workers or otherwise self-employed likely must make estimated tax payments to the IRS every quarter. This article notifies readers of an upcoming payment deadline, explores the details of estimated tax payments, and looks at a method that may help people whose...
Budgeting, Retirement / 11.12.2021
APPRAISALS AREN’T JUST FOR BUSINESSES ANYMORE
For hard-to-value assets, such as closely held businesses, real estate and art, a professional appraisal may be necessary. This article explores situations that call for an appraisal, including retirement and estate planning, gift disclosures and charitable donations....
Legal, Taxes / 03.12.2021
IS YOUR BUSINESS ELIGIBLE FOR THE QBI DEDUCTION?
Since the introduction of the qualified business income (QBI) deduction, many business owners have been left wondering whether they qualify for it. This brief article explains who’s eligible and how businesses may take action at year end to qualify....
Legal, Taxes / 26.11.2021
IS DISABILITY INCOME TAXABLE?
Many Americans receive disability income, and the question is often asked: Is it taxable? The short answer is: That depends on who paid for it. This article details how and when taxes may apply. A sidebar discusses how much disability coverage an individual may need....
Legal, Taxes / 19.11.2021
4 WAYS TO WITHDRAW CASH FROM A CORPORATION
Owners of closely held corporations often want or need to withdraw cash from the business. The simplest way is to distribute the money as a dividend, but that isn’t tax-efficient. This article suggests several other ways to withdraw cash with generally better tax consequences, such...
Insurance, Legal, Taxes / 12.11.2021
ONE-TIME THING: IRA TO HSA TRANSFERS
Many people don’t know that you can transfer funds directly from an IRA to a Health Savings Account (HSA) without taxes or penalties. However, a taxpayer may do so only once during his or her lifetime. This article discusses some of the important points to...
Legal, Taxes / 05.11.2021
GIVING BAD DEBTS THE BUSINESS
When one of a company’s customers can’t pay up, the business may be able to claim a tax deduction for the “bad debt” under Internal Revenue Code Section 166. To successfully do so, however, the business owner must know how the tax code defines a...
Budgeting, Legal, Taxes / 25.10.2021
STATE TAXES IMPACT BUSINESS SALES, TOO
Business owners sometimes decide to put their companies on the market. When doing so, they may focus on the federal tax implications of a sale. But there will be state tax implications, too. This brief article touches on some key issues regarding state taxes....
Budgeting, Growth, Legal, Taxes / 18.10.2021
DON’T GET BLOWN AWAY BY A WINDFALL
Receiving a sudden and sizable influx of cash may seem like a dream come true. It can be, but many people get blown away by a windfall and end up in worse financial shape. This article suggests some common-sense tips on creating a sensible, long-term...
Budgeting, Insurance, Legal, Taxes / 11.10.2021
THE DEDUCTIBILITY OF MEDICAL EXPENSES
Individual taxpayers may be able to claim medical expense deductions on their tax returns. However, the rules can be challenging, and it can be difficult to qualify. This article offers up five points to keep in mind about the deductibility of medical expenses....
COVID-19, Legal, Taxes / 04.10.2021
BEING PREPARED FOR AN IRS AUDIT
The IRS recently announced it intends to hire thousands of new employees as part of a tax-enforcement push, which could mean an uptick in audits sometime soon. The best way to survive an IRS audit is to prepare for one in advance. This article discusses...
Taxes / 01.10.2021
Tax calendar
This calendar notes important tax deadlines for the fourth quarter of 2021....
Technology / 27.09.2021
SAFEGUARDING YOUR CRITICAL DOCUMENTS
Every adult has a variety of critical documents that should be protected. This brief article discusses the importance of having a dependable safe or bank safe deposit box in which to store key documents and even cash in case of a major disaster....
Taxes, Technology / 20.09.2021
ENERGIZE TAX SAVINGS WITH AN EV CREDIT
Electric vehicles (EVs) are increasing in popularity all the time, and more of them are qualifying for a federal tax credit. For example, the IRS added three more eligible models in July. This article discusses the definition of EVs for tax purposes as well as...
Taxes, Technology / 13.09.2021
WHICH BUSINESS WEBSITE COSTS ARE DEDUCTIBLE?
Every business needs a website, but it’s not always easy to determine which costs of running one are deductible. Fortunately, there are guidelines and even IRS guidance to follow. This article discusses both the hardware and software costs associated with a website....
Budgeting, Legal, Taxes / 10.09.2021
THE CURRENT STATE OF ESTATE PLANNING
Because of the current estate tax exemption amount ($11.7 million in 2021), many estates no longer need to be concerned with federal estate tax. As a result, more energy can be devoted to other aspects of estate planning. This article looks at important issues to...
Legal, Taxes / 30.08.2021
KNOW THE NUANCES OF THE NANNY TAX
During the pandemic, many families have hired household workers. For any household worker who isn’t an independent contractor, “nanny tax” obligations may apply. This article explores the details of withholding, reporting and paying a household worker. A sidebar looks at the federal unemployment tax....
Budgeting, Depreciation, Inheritance, Legal / 23.08.2021
5 KEY POINTS ABOUT BONUS DEPRECIATION
Like most business owners, you’ve probably heard about 100% bonus depreciation. It’s available for a wide range of qualifying asset purchases. But there are many important details to keep straight. This article presents five key points about this powerful tax-saving tool....
Budgeting, Depreciation, Growth, Legal / 16.08.2021
STRESS TESTING YOUR INVESTMENT PORTFOLIO
Many banks conduct regular “stress” tests to predict the impact of adverse external events. Essentially, stress testing is the ultimate “what if” analysis. This article discusses how investors can perform stress tests on their portfolios to assess and mitigate risk....
COVID-19, Depreciation, Growth, Inheritance / 09.08.2021
COMPILING A MARITAL BALANCE SHEET IN DIVORCE
Divorce is a difficult process for almost everyone. That’s why being clear and organized can help facilitate the process. This brief article discusses how the first step is generally to compile a marital balance sheet and what that involves....
Budgeting, Legal, Taxes / 30.07.2021
CURTAILING TAX SURPRISES WITH CRYPTOCURRENCY
As investing in Bitcoin, Dogecoin and other cryptocurrencies becomes more popular, investors need to understand the potential tax ramifications. Unlike traditional currency, the IRS views cryptocurrency as property. This article explores the impact on capital gains and losses as well as defines key terms such...
Budgeting, Insurance, Legal, Taxes / 26.07.2021
FAMILY BUSINESSES MUST BEWARE OF FRAUD
Family businesses make up a huge percentage of companies in the United States and produce much of the country’s gross domestic product. However, for various reasons, they may also potentially face higher fraud risk. This article discusses why, and how family business owners can reduce...
Budgeting, Legal, Taxes / 16.07.2021
ARE SCHOLARSHIPS TAXABLE?
If your child has been awarded a scholarship for college or another type of school, it’s certainly cause for celebration. But parents need to be aware of the potential tax implications. This article explains whether or not scholarships are taxable. ...
Legal, Taxes / 12.07.2021
A TAX QUIRK OF BEING A BUSINESS PARTNER
If you’re a partner in a business, you may have encountered a situation that gave you pause. In any given year, you may have been taxed on more partnership income than was distributed to you. The cause of this quirk of taxation lies in the...
Legal, Taxes / 05.07.2021
TAX CALENDAR
July 15 — If the monthly deposit rule applies, employers must deposit the tax for payments in June for Social Security, Medicare, withheld income tax and nonpayroll withholding. August 2 — The second quarter Form 941 (“Employer’s Quarterly Federal Tax Return”) is due today. (If your...
COVID-19, Insurance, Legal, Taxes / 28.06.2021
INDIVIDUAL TAXPAYERS, REMEMBER THE RESCUE!
Many individual taxpayers fondly recall the stimulus payments issued this spring under the American Rescue Plan Act. However, the law contains plenty of other provisions also worth remembering. This article reviews four highlights. A sidebar looks at the income exclusion for unemployment benefits....
COVID-19, Insurance, Legal / 21.06.2021
WEIGHING THE PROS AND CONS OF LTC INSURANCE
The COVID-19 pandemic has significantly affected our lives in many ways that are still playing out. For example, it has served as a reminder of how difficult an unexpected medical crisis can be to manage financially. This article explores the pros and cons of one...
Buildings, Inheritance, Legal, Retirement / 14.06.2021
SHOULD AN LLC HOLD YOUR VACATION HOME?
Holding a vacation home shared by family members in a limited liability company is one option that can offer important benefits. This short article lists several: asset protection, ease of management, ownership restrictions and estate planning advantages....
COVID-19, Legal, Taxes / 07.06.2021
NEW RULES FOR COVID-RELATED PAID SICK TIME AND LEAVE
Under the Families First Coronavirus Response Act, employees could (through December 31, 2020) take paid sick time and paid family leave to care for themselves or loved ones because of COVID-19. This brief article notes some changes to the applicable rules with the passage of...
Inheritance, Taxes / 24.05.2021
BOLSTER WEALTH MANAGEMENT WITH TRUSTS
Trusts can help affluent individuals and families manage, protect and grow their wealth. But there are a wide variety to choose from, so it’s important to understand the basic concepts behind trusts before choosing one. This article defines trusts and provides an example of how...
Taxes / 17.05.2021
3 THINGS TO KNOW AFTER FILING YOUR TAX RETURN
Most people feel a sense of relief after filing their tax returns. But even if you’ve successfully filed your 2020 return with the IRS, there may still be some issues to bear in mind. This article discusses three considerations: checking on a refund, filing an...
Budgeting, Legal, Taxes / 10.05.2021
THE TAX TREATMENT OF START-UP EXPENSES
With the economy expected to improve in the months or quarters ahead, many business owners and entrepreneurs may decide to launch new enterprises. This article discusses the general rules and applicable expenses related to the tax treatment of start-ups. ...
Budgeting, Depreciation, Growth, Retirement / 03.05.2021
APPRECIATING THE HELPFUL BALANCE OF BONDS
Stock market swings may bring both fortune and fear, so investors shouldn’t forget about the helpful balance of bonds. This brief article discusses several popular options, including U.S. government savings bonds and corporate bonds....
COVID-19, Growth, Inheritance, Legal, Retirement, Taxes / 30.04.2021
CONSIDERING A ROTH IRA CONVERSION
Future retirees have long grappled with whether to opt for a traditional or Roth IRA. Those who have a traditional IRA and have seen a decline in the value of their investments may want to consider a conversion to a Roth. This article reviews how...
Budgeting, COVID-19, Legal, Taxes / 23.04.2021
WORKER CLASSIFICATION IS STILL IMPORTANT
Over the last year, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for federal tax purposes. Tax obligations The question of whether a worker is an independent contractor or an...
Budgeting, COVID-19, Taxes / 16.04.2021
BE PREPARED FOR TAXES ON SOCIAL SECURITY BENEFITS
No one likes a surprise when filing a tax return. One thing that takes many older people off-guard is getting taxed on their Social Security benefits. This article explains how to calculate provisional income to determine whether your Social Security income is indeed subject to...
COVID-19, Legal, Taxes / 09.04.2021
HOW THE CAA AFFECTS EDUCATION FUNDING
The Consolidated Appropriations Act (CAA), signed into law late last year, contains a multitude of provisions that may affect individuals. For example, if you’re planning to fund a college education or in the midst of paying for one, the CAA covers two important areas: ...
COVID-19, Legal, Taxes / 02.04.2021
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2021....
Budgeting, COVID-19, Legal, Taxes / 29.03.2021
PPP LOANS: ONE YEAR LATER
About a year ago, the Paycheck Protection Program (PPP) was launched in response to the COVID-19 crisis. If your company took out such a loan, you’re likely curious about the tax consequences — particularly for loans that have been forgiven. Forgiveness criteria An eligible recipient may have...
Budgeting, Buildings, Depreciation, Growth, Legal, Taxes / 22.03.2021
HOME’S WHERE A TAX BREAK MIGHT BE
If you own a home, the interest you pay on your home mortgage may provide a tax break in the form of the mortgage interest deduction. However, you must itemize deductions on your tax return and follow a few other rules. Acquisition debt A personal interest deduction...
Legal, Taxes / 15.03.2021
HAVE A FOREIGN ACCOUNT? FILE AN FBAR
Any U.S. person who has a financial interest in, or signature or other authority over, any foreign financial accounts must file a Report of Foreign Bank and Financial Accounts (FBAR) if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during...
Budgeting, COVID-19, Legal, Taxes / 08.03.2021
RECONSIDERING YOUR PERSONAL EMERGENCY FUND
When the COVID-19 pandemic first hit, many people’s emergency funds were suddenly put the test. Now, presumably with the benefit of some hindsight, the financially savvy might want to reconsider their approach to saving. This brief article discusses some key points to keep in mind....
COVID-19, Legal, Taxes / 26.02.2021
WHAT’S YOUR FINANCIAL PERSONALITY?
Everyone’s personal financial plan doesn’t have to be complex, but it does generally need to cover two major facets: paying down debt and saving money. This brief article discusses the importance of identifying one’s financial personality and using that as a guide to creating a...
Legal, Taxes / 19.02.2021
CONSIDER TAXES BEFORE MOVING OUT OF STATE
Many people might think about moving to another state. However, it’s important to consider the tax ramifications before doing so. This article urges readers to identify all applicable taxes in a destination state and recommends being prepared to meet the legal requirements for establishing domicile....
COVID-19, Legal, Taxes / 12.02.2021
CLAIMING THE HOME OFFICE DEDUCTION
Many people have found themselves working from home during the COVID-19 pandemic and wondering, “Can I claim the home office deduction for 2020?” The short answer is: Only if you’re self-employed. This article delves deeper into the other rules involved....
Legal, Taxes / 05.02.2021
WHY THE CHILD TAX CREDIT IS SO VALUABLE
The federal child tax credit is available to help many taxpayers with children under the age of 17, and there’s a dependent credit for those who are eligible with older children. This article explores the details. A sidebar explains that a qualifying child must have...
Legal, Taxes / 29.01.2021
6 KEY TAX Q&AS FOR 2021
Now’s a good time for taxpayers to familiarize themselves with pertinent tax-related amounts that may or may not be changing in 2021 because of inflation. This article poses six key questions about such amounts, including those related to retirement planning and the itemized deduction....
Budgeting, Legal, Taxes / 22.01.2021
BUSINESS BARTERING IS TAXABLE
During the COVID-19 pandemic, many cash-challenged businesses have bartered for goods and services instead of paying dollars for them. This article discusses the tax impact of bartering and explores membership in a barter exchange....
Legal, Taxes / 15.01.2021
ARE YOU AT RISK FOR INVESTMENT FRAUD?
Perpetrators of investment fraud know how to push the right psychological buttons to entice their “marks” to buy worthless or nonexistent securities. This article explains how to recognize and mitigate risk by asking the right questions, performing some research and consulting with trusted advisors....
Budgeting, Inheritance, Legal, Taxes / 08.01.2021
TWICE AS NICE: THE TEMPORARY GIFT TAX BREAK
Wealthier individuals should bear in mind that the Tax Cuts and Jobs Act temporarily doubled the federal gift and estate tax exemption through 2025. This brief article provides specifics on the dollar amounts involved and explains why there’s no reason to fear a “clawback.”...
Budgeting, COVID-19, Legal, Taxes / 01.01.2021
TAX CALENDAR
This calendar notes important tax deadlines for the first quarter of 2021....
Budgeting, COVID-19, Legal, Taxes / 25.12.2020
WHAT’S YOUR TAXPAYER FILING STATUS?
For many, December 31 means a New Year’s celebration. From a tax perspective, however, it should mean thinking about which filing status you will use for that year’s tax return. This article reviews the five statuses. A sidebar looks at whether a married person can...
Budgeting, Depreciation, Growth, Taxes / 18.12.2020
INTRAFAMILY LOANS AND A FAMILY BANK
Because of the COVID-19 pandemic, many people have family members who are struggling financially. For those with wealth to share, making an intrafamily loan or establishing a family bank could be a way to help. This article explains the importance of carefully structured intrafamily loans...
Depreciation, Growth, Legal, Taxes / 11.12.2020
HANDLE MUTUAL FUNDS CAREFULLY AT YEAR END
As the end of 2020 draws near, investors should take the time to review any mutual fund holdings in their taxable accounts and take steps to avoid potential tax traps. This article offers helpful tips such as avoiding capital gains surprises and being careful about...
COVID-19, Depreciation, Taxes / 04.12.2020
BUSINESSES SHOULD REVIEW SALES TAX LAWS
Most states with a sales tax have enacted “economic nexus” laws that expand the reach of their sales tax collection activities beyond their borders. This article urges businesses to reassess their sales-tax compliance obligations, especially as online transactions soar because of the COVID-19 crisis....
Growth, Insurance, Legal, Retirement, Taxes / 30.11.2020
ABLE ACCOUNTS HELP THOSE WITH DISABILITIES
There’s a tax-advantaged way for people to save for the needs of family members with disabilities — without having them lose eligibility for government benefits to which they’re entitled. It can be done through an Achieving a Better Life Experience (ABLE) account, which is a...
Budgeting, Depreciation, Growth, Taxes / 23.11.2020
THE TAX IMPACT OF BUSINESS PROPERTY REMEDIATION
If your company faces the need to “remediate” or clean up environmental contamination, the money you spend can be tax-deductible as ordinary and necessary business expenses. Unfortunately, every type of environmental cleanup expense cannot be currently deducted — some cleanup costs must be capitalized (spread...
Growth, Legal, Retirement, Taxes / 16.11.2020
CATCHING UP ON CATCH-UP CONTRIBUTIONS
When it comes to retirement planning, many people tend to focus on two things: opening a retirement savings account and then eventually drawing funds from it. However, there are other important aspects to truly doing everything you can to grow your nest egg. One of them...
Growth, Inheritance, Insurance, Legal, Retirement, Taxes / 09.11.2020
DO YOU KNOW THE “HIDDEN” ADVANTAGE OF HSAS?
A Health Savings Account (HSA) coupled with a high-deductible health plan can be a powerful tool for funding medical expenses on a tax-advantaged basis. For 2020, individuals with self-only coverage can make up to $3,550 in tax-deductible contributions to an HSA, while those with family...
Budgeting, COVID-19, Growth, Inheritance, Legal, Taxes / 30.10.2020
THE PROS AND CONS OF NQDC PLANS
Nonqualified deferred compensation (NQDC) plans allow participants to set aside large amounts of tax-deferred compensation while enjoying the flexibility to schedule distributions to align with their financial goals. However, the plans also pose substantial risks. If your (or a prospective) employer offers an NQDC plan,...
Budgeting, COVID-19, Growth, Legal, Taxes / 26.10.2020
BEWARE OF “WASH SALES” WHEN SELLING SECURITIES
If you’re planning to sell capital assets at a loss to offset gains that have been realized during the year, it’s important to beware of the “wash sale” rule. Under this tax rule, if you sell stock or securities for a loss and buy substantially...
Budgeting, COVID-19, Depreciation, Legal, Retirement, Taxes / 19.10.2020
IS IT TIME FOR A COST SEGREGATION STUDY?
Because of the economic impact of the COVID-19 crisis, many companies may want to conserve cash and not buy much equipment this year. As a result, you may not be able to claim as many depreciation tax deductions as in the past. However, if your...
COVID-19, Legal, Taxes / 12.10.2020
TAX CALENDAR
October 15 — Personal federal income tax returns for 2019 that received an automatic extension must be filed today and any tax, interest, and penalties due must be paid. The Financial Crimes Enforcement Network (FinCEN) Report 114, “Report of Foreign Bank and Financial Accounts” (FBAR),...
COVID-19, Growth, Inheritance, Legal, Taxes / 09.10.2020
TALKING ABOUT THE SANDWICH GENERATION
The term “sandwich generation” describes people caught between caring for their aging parents and their children. This brief article encourages those in the middle part of the sandwich to initiate family discussions with the other two parts to discuss tax and financial planning issues....
The COVID-19 pandemic has provided many lessons for business owners. One is how to report the impact of a disaster on a company’s financial statements. This brief article discusses two types of “subsequent events” that may need to be disclosed....
Budgeting, Legal, Retirement, Taxes / 21.09.2020
COLLEGE SAVINGS SHOWDOWN: 529s vs. ROTH IRAs
Many people assume that a 529 plan is the ideal college savings tool. But other vehicles can help parents save for college expenses — for example, the Roth IRA. This article compares key features of the two account types....
Buildings, COVID-19, Legal, Taxes / 14.09.2020
REVIEW YOUR ESTATE PLAN FOLLOWING A MAJOR SHOCK
Generally, it’s recommended that individuals review their estate plans at year’s end. However, with a life shock as monumental as the COVID-19 pandemic, it might be a good idea to get an earlier start. This article provides examples of potential revisions and discusses wills and...
Budgeting, Legal, Taxes / 04.09.2020
AMT LESS “TOOTHY” BUT MAY STILL TAKE A BITE
Although the Tax Cuts and Jobs Act took much of the “teeth” out of the AMT by raising the inflation-adjusted exemption, high-income earners (and even some middle-income earners) should still watch out for its bite. This article discusses the basic rules and the role of...
Budgeting, COVID-19, Legal, Taxes / 28.08.2020
WITH GLITCH FIXED, CONSIDER BUSINESS PROPERTY UPGRADES
The Coronavirus Aid, Relief and Economic Security Act fixed a legislative glitch that prevented businesses from claiming 100% bonus depreciation for qualified improvement property. This brief article describes the situation and advises business owners to keep this tax break in mind....
COVID-19, Inheritance, Legal, Retirement, Taxes / 21.08.2020
TAKING DISTRIBUTIONS FROM YOUR TRADITIONAL IRA
If you’re like many people, you’ve worked hard to accumulate a nest egg in your traditional IRA. Knowing the finer points of the distribution rules is critical — particularly as some of these rules have temporarily changed under the Coronavirus Aid, Relief and Economic Security...
Buildings, COVID-19, Retirement, Taxes / 14.08.2020
IS YOUR PORTFOLIO READY FOR A REIT?
The stock market’s roller coaster ride this year, spurred largely by the COVID-19 crisis, has many people craving stability. One way to potentially steady a portfolio is with real estate. This article looks at real estate investment trusts....
COVID-19, Insurance, Taxes / 07.08.2020
RISKS vs. BENEFITS OF LIFE INSURANCE LOANS
Because of the economic downturn triggered by the COVID-19 crisis, many people have found themselves in need of cash to pay unexpected medical bills, mortgage payments and other expenses. One option is to borrow against the cash value of a permanent life insurance policy. This...
Budgeting, Buildings, Growth / 27.07.2020
INSTALLMENT SALES MAY ATTRACT PROPERTY BUYERS
Many businesses and individuals are unexpectedly looking for liquidity this year. One way to raise cash is to sell off real property, though finding ready buyers has gotten more difficult. This article discusses one potential solution: an installment sale....
COVID-19, Legal, Taxes / 24.07.2020
CHARITABLE GIVING IN A TIME OF CRISIS
The sudden and severe impact of the novel coronavirus (COVID-19) pandemic has generated an intense need for charitable action. This article outlines tax incentives under the CARES Act for charitable giving and suggests some careful steps to take before donating....
Budgeting, COVID-19, Legal, Taxes / 20.07.2020
DON’T FORGET ABOUT THE PAYROLL TAX CREDIT
If your company has been able to keep some or all of its workers on its payroll, remember that you may still be able to qualify for the payroll tax credit created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This article discusses...
Budgeting, COVID-19, Legal, Taxes, Technology / 17.07.2020
PROTECTING YOURSELF FROM OPPORTUNISTIC FRAUD
The novel coronavirus (COVID-19) crisis this year has created ample opportunities for dishonest individuals and criminal organizations. This article suggests various protective actions to take to avoid becoming a victim....
Budgeting, Legal, Taxes / 14.07.2020
TAX CALENDAR
This calendar notes important tax deadlines for the third quarter of 2020....
COVID-19, Legal, Taxes / 26.06.2020
DON’T FORGET ABOUT YOUR 2019 TAX RETURN
Earlier this year, in response to the novel coronavirus (COVID-19) crisis, the IRS deferred the filing and payment deadlines for federal tax returns. This article recaps the relief and discusses what taxpayers should know about filing an extension and contributing to certain savings accounts. A...
Legal, Taxes / 22.06.2020
KEEPING UP WITH THE NET OPERATING LOSS RULES
When a trade or business’s deductible expenses exceed its income, a net operating loss (NOL) generally occurs. The rules applying to NOLs have changed and changed again. This article reviews how they’ve been revised, including most recently under the CARES Act....
Legal, Taxes, Technology / 15.06.2020
SHOULD YOU DIGITIZE YOUR TAX AND FINANCIAL RECORDS?
Traditionally, important tax and financial records have been stored as hardcopies in desk drawers, filing cabinets and safe deposit boxes. Nowadays, it’s become increasingly popular and easy to digitize documents and store them electronically. This article explores the advantages and risks of this approach....
Budgeting, Legal, Taxes / 12.06.2020
THE MARRIAGE PENALTY STILL EXISTS UNDER THE TCJA
One byproduct of the Internal Revenue Code is that the tax liability of married couples who file jointly may be more than their combined tax liabilities would be as single filers. When it is more, many refer to the resulting tax hike as “the marriage...
Taxpayers with large, outstanding tax bills need to watch out. The U.S. State Department could deny a passport application, or revoke or limit a current passport, if the IRS certifies that an individual has a seriously delinquent tax debt. This brief article provides more information....
Budgeting, Legal, Retirement, Taxes / 22.05.2020
BENEFIT WITH A TWIST: THE ROTH 401(k)
While 401(k) plans and Roth IRAs are well known, job candidates and employees may not be all that familiar with the Roth 401(k). This article discusses what business owners should know about this potentially valuable employee retirement benefit....
Taxpayers with large, outstanding tax bills need to watch out. The U.S. State Department could deny a passport application, or revoke or limit a current passport, if the IRS certifies that an individual has a seriously delinquent tax debt. This brief article provides more information....
Budgeting, Buildings, Growth, Legal, Taxes / 01.05.2020
ROLLING OVER CAPITAL GAINS INTO A QUALIFIED OPPORTUNITY FUND
Anyone selling a business interest, real estate or other highly appreciated property could get hit with a substantial capital gains tax bill. One way to soften the blow — though it ties up the funds long term — is to “roll over” the gain into a...
Budgeting, Buildings, Growth, Legal, Taxes / 27.04.2020
EXECUTIVE COMPENSATION REQUIRES INFORMED DECISION-MAKING
Business owners want to compensate themselves and their top executives fairly and competitively for their work, results and commitment. But how can they do so without attracting undue IRS scrutiny and claims of inappropriate compensation? This article explains some important factors to consider for both...
Many businesses spend time and money “wining and dining” current or potential customers, vendors and employees. What can they deduct on their tax returns for these expenses? The answer has changed under the Tax Cuts and Jobs Act. This article reviews the rules....
Americans who are 65 and older qualify for basic Medicare insurance, but they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially for married couples who must pay separately for each spouse. As this...
Budgeting, Taxes / 10.04.2020
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2020....
Estate planning isn’t just about what happens to one’s assets after death. It’s also about protecting oneself and one’s family during life. This article discusses two estate planning documents that are essential for everyone: a living will and a health care power of attorney....
Budgeting, Growth / 27.03.2020
RAISING FINANCIALLY RESPONSIBLE KIDS
Kids who learn about money when they’re young are more likely to develop sound financial habits when they’re adults. This brief article offers tips on how to raise financially responsible kids at various stages of childhood....
Budgeting, Legal, Taxes / 20.03.2020
THE 2019 GIFT TAX RETURN DEADLINE IS ALMOST HERE, TOO
Most people have April 15 “tattooed on the brain” as the deadline for filing their federal income tax returns. What many forget is that the gift tax return deadline is on the very same date. This article explains the filing requirements and why some taxpayers...
Budgeting, Legal, Taxes / 16.03.2020
IS THE FAMILY AND MEDICAL LEAVE ACT CREDIT RIGHT FOR YOUR BUSINESS?
The Tax Cuts and Jobs Act created a new tax credit for certain employers that provide paid family and medical leave. Originally, it was available only for the 2018 and 2019 tax years but was recently extended by a new law. This article has the...
Budgeting, Legal, Taxes / 13.03.2020
GIG WORKERS, KNOW YOUR TAX RESPONSIBILITIES
Gig workers represent a growing segment of the economy. And no matter what the job or app, they all have one thing in common: taxes. This article explores the distinctive aspects of this type of self-employment. A sidebar points out that gig workers may qualify...
Despite the prevalence of Web-based meetings, many of today’s businesses still have plenty of employees who travel. For companies that reimburse employees on a tax-free basis for travel expenses, it’s important to stay up to date on the rules that determine the location of a...
It’s an awful feeling for anyone to learn that his or her credit or debit card has been used fraudulently. Whether the cardholder is liable typically depends on the type of card, whether he or she still possesses the card and when the card issuer...
Budgeting, Legal, Retirement, Taxes / 20.01.2020
EVERY BUSINESS OWNER NEEDS AN EXIT STRATEGY
Business owners must monitor the cash flow and tax positions of their companies, while also looking out for their own personal financial futures. This article looks at how to lay the foundation for a strong exit strategy using a buy-sell agreement and family-focused succession planning...
Budgeting, Taxes / 17.01.2020
TAX CALENDAR
This calendar notes important tax deadlines for the first quarter of 2020....
Budgeting, Taxes / 13.01.2020
DO YOU KNOW YOUR TAX BRACKET?
The Tax Cuts and Jobs Act generally reduced individual tax rates through 2025, but some taxpayers have actually seen their taxes go up because of reductions or eliminations of certain tax breaks. This brief article explains why it’s important for taxpayers to know their brackets....
Many people might consider donating their car to charity at year end to start the new year in a fresh ride and get a tax deduction. This brief article urges caution and explains why this strategy doesn’t always work out as intended....
Budgeting, Retirement, Taxes / 13.12.2019
5 LAST-MINUTE TAX MOVES FOR YOUR BUSINESS
The days of the calendar year are vanishing quickly, but there still may be some last-minute strategies that business owners can use to lower their 2019 tax bills. This article lists five to consider, including postponing invoices and qualifying for the pass-through deduction....
With the dawn of 2020 on the near horizon, here’s a quick list of tax and financial to-dos you should address before 2019 ends:...
Budgeting, Insurance, Legal, Taxes / 06.12.2019
ASSET PROTECTION IS JUST AS IMPORTANT AS TAX PLANNING
Many financially savvy individuals are already thinking about filing their tax returns next year. But they shouldn’t overlook another critical and equally important aspect of financial planning: asset protection. This article discusses some fundamental strategies to consider. A sidebar discusses asset ownership structure....
Budgeting, Taxes / 25.11.2019
ACT NOW TO SAVE 2019 TAXES ON YOUR INVESTMENTS
Do you have investments outside of tax-advantaged retirement plans? If so, you might still have time to reduce your 2019 tax bill by selling some investments ― you just need to carefully select which investments you sell. Balance gains and losses If you’ve sold investments at a gain this year, consider selling...
Budgeting, Legal, Retirement, Taxes / 22.11.2019
LIVING THE DREAM OF EARLY RETIREMENT
Many people dream of retiring early so they can pursue activities other than work. But making this dream a reality requires careful planning and diligent saving during the years leading up to retirement. This brief article touches on some of the fundamental ways to live...
Among the most important impacts of the Tax Cuts and Jobs Act is its increase of the standard deduction. This article explains how the increase has affected the strategy of “bunching” deductible medical expenses into one year to save tax dollars....
It’s common for owners of closely held businesses to transfer money into and out of the company. But it’s critical to make such transfers properly or risk unwanted IRS attention. This article explains how and why a transfer should be defined as a loan —...
Legal, Taxes / 26.08.2019
CONSIDER THE FLEXIBILITY OF A SELF-DIRECTED IRA
Traditional and Roth IRAs can be relatively “safe” retirement-savings vehicles, depending on what they’re invested in. But a drawback is that they limit investment choices. This article looks at an alternative: self-directed IRAs, which provide more flexibility in investment choices but also come with a...
Legal, Taxes / 19.08.2019
TAX DOCUMENT RETENTION GUIDELINES FOR SMALL BUSINESSES
Most small business owners probably breathed a sigh of relief after filing their 2019 taxes (or requesting an extension). They’ll have a much easier time filing next year if their tax-related files (whether paper or digital) are culled of clutter. This article provides both general...
Legal, Taxes / 09.08.2019
KNOW A TEACHER? TELL ‘EM ABOUT THIS TAX BREAK!
When teachers are setting up their classrooms for the new school year, it’s common for them to pay for a portion of their classroom supplies out of pocket. A special tax break allows these educators to deduct some of their expenses. This article explains how...
Legal, Taxes / 02.08.2019
PLANNING FOR THE NET INVESTMENT INCOME TAX
Despite its name, the Tax Cuts and Jobs Act didn’t cut all types of taxes. It left several taxes unchanged, including the 3.8% tax on net investment income (NII) of high-income taxpayers. This brief article defines the NII tax and urges you to explore strategies...
The Tax Cuts and Jobs Act has given business owners much to think about, including whether to change the structure under which their companies operate. This article explains what’s changed and offers some scenarios to ponder. A sidebar looks at what growth-focused businesses should think...
Finding ways to defer or minimize taxes on investments is always important. One way to do so — and diversify one’s portfolio, too — is to invest in qualified small business stock. This article describes the tax advantages....
Buildings, Depreciation, Legal, Taxes / 17.06.2019
VACATION HOMES: DO YOU UNDERSTAND THE TAX NUANCES?
A vacation home can provide a welcome retreat from the hustle and bustle of everyday life. But that’s not all: It can also offer valuable tax benefits. This article sorts out the rules for claiming a tax break....
A long-term care insurance policy supplements traditional health insurance by covering services that assist the insured with one or more activities of daily living. Long-term care coverage is relatively expensive, but it may be possible to reduce the cost under a tax-qualified policy. This brief...
Must one spouse pay the tax resulting from a fabrication or omission by another spouse on a jointly filed tax return? It depends. This article explores the “innocent spouse” rules, which aren’t easy to qualify for but do offer relief to some taxpayers. A sidebar...
Legal, Taxes / 24.05.2019
DEDUCTING BUSINESS LOSSES FOR PASS-THROUGH ENTITIES
It’s not uncommon for businesses to sometimes generate tax losses. But the tax law limits deductible losses in some situations, and the Tax Cuts and Jobs Act limits them even further for pass-through entities. This article explains how and why the rules have changed following...
Legal, Taxes / 17.05.2019
SEND YOUR KIDS TO DAY CAMP AND YOU MAY GET A TAX BREAK
Among the many great challenges of parenthood is what to do with the kids when school lets out. If one chooses to send a child to day camp, he or she may qualify for a valuable tax break: the child and dependent care credit. This...
Legal, Taxes / 10.05.2019
SHOULD YOU BE WORRIED ABOUT AN IRS AUDIT?
Now that most taxpayers have filed their 2018 tax returns, one troubling afterthought may come to mind: Could I get audited? This brief article discusses how the IRS goes about choosing returns to audit and why most people should breathe easy....
Budgeting, Legal, Taxes / 29.04.2019
RUNNING YOUR PERSONAL FINANCES LIKE A BUSINESS
Most individuals don’t regard themselves as businesses, trying to turn a profit and beat the competition. But, occasionally, it may help to look at one’s financial situation this way to determine where to cut expenses and boost cash flow. This article provides some tips, including...
Budgeting, Legal, Taxes / 26.04.2019
BUSINESS VS. HOBBY: THE TAX RULES HAVE CHANGED
The tax implications of earning money from an activity will vary depending on whether it is considered a hobby or business by the IRS. And the rules recently changed under the Tax Cuts and Jobs Act. This article reviews the hobby vs. business distinction and...
Budgeting, Legal, Taxes / 22.04.2019
ARE INCOME TAXES TAKING A BITE OUT OF YOUR TRUSTS?
Anyone whose estate plan includes one or more trusts should review them before filing an income tax return. And those who have already filed should look carefully at how their trusts were affected. This article explains that trusts can be subject to the highest tax...
Now more than ever, small business owners need to double-check their tax returns before filing. Why? Because many of the changes ushered in by the Tax Cuts and Jobs Act take effect with the 2018 tax year. This brief article notes some important revisions....
Legal, Taxes / 08.04.2019
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2019....
Budgeting, Depreciation, Growth, Taxes / 29.03.2019
WEIGH THE TAX IMPACT OF INCOME VS. GROWTH WHEN INVESTING
As the 2018 tax-filing season heats up, investors need to consider whether their objectives have changed and how the state of their portfolios will impact their tax liability. This article discusses important issues such as dividends and timing. A sidebar looks at why it’s important...
Whether they’re planning to claim charitable deductions on a 2018 return or make donations for 2019, it’s important for taxpayers to know how much they’re allowed to deduct. This article provides details on different types of charitable gifts and discusses concepts to consider when planning...
Buildings, Legal, Taxes / 15.03.2019
DID YOU REPAIR YOUR BUSINESS PROPERTY OR IMPROVE IT?
Business owners may think that, if they repair a piece of tangible property, they’ll qualify for an immediate tax deduction. But the IRS may define that “repair” as an “improvement,” and require the costs to be depreciated over a much longer period. This article explores...
It may sound too good to be true, but there may be valuable unclaimed property out there for just about anyone. This brief article offers tips on how to start looking and what to do if one discovers unclaimed property in his or her name....
Legal, Taxes / 25.02.2019
MULTI-STATE RESIDENT? WATCH OUT FOR DOUBLE TAXATION
Contrary to popular belief, no federal law prohibits multiple states from collecting tax on the same income. This article raises some important points to keep in mind for those who maintain residences in more than one state (or may soon do so). A sidebar looks...
Budgeting, Growth, Taxes / 18.02.2019
YOU’VE GOT TIME: SMALL BUSINESS CAN STILL SET UP A 2018 SEP PLAN
Simplified Employee Pension (SEP) plans can be flexible and, well, simple vehicles that small businesses can use to offer retirement benefits to employees. This article explains how they work and reminds readers that there’s still time to set one up to benefit on a 2018...
Budgeting, Legal, Taxes / 11.02.2019
FEWER TAXPAYERS TO QUALIFY FOR HOME OFFICE DEDUCTION
Working from home has become commonplace in many industries but, beginning with the 2018 tax year, fewer taxpayers will qualify for the home office deduction. This article explains why and how to claim the deduction if you’re among the fortunate who are eligible to do...
Budgeting / 04.02.2019
THROWING SNOWBALLS AT YOUR MOUNTAIN OF DEBT
Many people start the year intending to get out of debt, yet end the year owing just as much, if not more. This brief article explores a debt-reduction approach called “throwing snowballs,” which involves organizing debts from lowest to highest balance and knocking them down...
Budgeting, Inheritance, Legal, Taxes / 28.01.2019
INSTALLMENT SALES: A VIABLE OPTION FOR TRANSFERRING ASSETS
Many people will eventually need to transfer ownership of real estate, a family business or some other asset expected to appreciate dramatically in the future. In such cases, an installment sale may be a viable option. This article explains under what circumstances this strategy should...
Budgeting / 25.01.2019
HOW TO TRIM THE FAT FROM YOUR INVENTORY
Inventory is expensive, so it needs to be as lean as possible. Businesses need to find ways to trim the fat from inventory without compromising revenue and customer service. This article has some suggestions, including using inventory ratios for benchmarking and reviewing product mix....
Budgeting, Taxes / 21.01.2019
LAYING THE GROUNDWORK FOR YOUR 2018 TAX RETURN
The Tax Cuts and Jobs Act made many changes to tax breaks for individuals. This article looks at some specific areas to review as one lays the groundwork for filing a 2018 tax return: personal exemptions, the standard deduction and the child credit....
Legal, Taxes / 14.01.2019
7 WAYS TO PREVENT ELDER FINANCIAL ABUSE
As tax season ramps up, so do the efforts of scam artists looking to steal older people’s financial data and money. This article offers seven ways to prevent elder financial abuse....
Taxes / 11.01.2019
TAX CALENDAR
This calendar notes important tax deadlines for the first quarter of 2019....
Inheritance, Legal, Taxes / 28.12.2018
AN INTRAFAMILY LOAN IS WORTH CAREFUL CONSIDERATION
Intrafamily loans can provide family members with financial support and encourage children to learn financial responsibility, all without diminishing one’s “nest egg.” But there are risks to consider. This article explains how an intrafamily loan should work and what to watch out for....
Budgeting, Growth, Legal, Taxes / 21.12.2018
USE CAPITAL LOSSES TO OFFSET CAPITAL GAINS
When is a loss actually a gain? When that loss becomes an opportunity to lower tax liability, of course. This article discusses the tried-and-true strategy of using capital losses to counter the potentially costly impact of capital gains....
Smart timing of deductible expenses can reduce tax liability, and poor timing can unnecessarily increase it. One deductible expense that taxpayers may be able to control is their property tax payments. This article examines the prospect of prepaying property taxes that relate to this year...
Many businesses find themselves short-staffed from Thanksgiving through December 31 as employees use, rather than lose, their remaining paid time off (PTO). One way to curtail this dilemma is a PTO contribution arrangement, whereby unused vacation hours are converted to retirement plan contributions. This brief...
When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts. But traditional taxable accounts may still make more sense for certain investments. This article discusses the difference between “taxable” and “tax-advantaged” and which vehicles tend to work the best where. A sidebar...
Budgeting, Insurance / 23.11.2018
IS NOW THE TIME FOR SOME LIFE INSURANCE?
Many people reach a point in life when buying some life insurance is highly advisable. Once they determine that they need it, the next step is calculating how much they should get and what kind. This article discusses both points....
Taxpayers age 50 or older on December 31 of any given year can start making “catch-up” contributions to their employer-sponsored retirement plans by that date. These are additional contributions to certain retirement accounts beyond the regular annual limits. This article serves up reminders regarding the...
Budgeting, Taxes / 12.11.2018
YEAR-END TAX STRATEGIES FOR ACCRUAL-BASIS BUSINESS
The last month or so of the year offers accrual-basis businesses an opportunity to make some timely moves that might enable them to save money on their 2018 tax bills. This brief article offers a variety of timely tips to consider....
Budgeting, Insurance, Legal, Taxes / 29.10.2018
ARE YOU A MEMBER OF THE SANDWICH GENERATION
The “Sandwich Generation” consists of those individuals who are currently taking care of their children and their elderly parents. This article covers some critical steps to take when incorporating an elderly parent’s needs into an adult child’s estate plan....
Budgeting, Legal, Taxes / 22.10.2018
AVOID PENALTIES BY ABIDING BY THE NQDC TAX RULES
Nonqualified deferred compensation plans pay executives at some time in the future for services currently performed. Of course, in the hectic course of the average exec’s schedule, keeping up with the details isn’t always easy. This article explains how these plans differ from qualified plans...
Budgeting, Legal, Taxes / 15.10.2018
DOL HAS INCREASED SCRUTINY OF DEFINED BENEFIT PLANS
Sponsors of defined benefit plans — commonly known as pensions — might be facing tighter scrutiny from the DOL. Just last year, the agency’s Employee Benefits Security Administration ramped up pension audits in its Philadelphia office and later decided to do so elsewhere. This article...
Budgeting, Buildings, Growth, Taxes / 12.10.2018
CATCHING UP WITH THE HOME MORTGAGE INTEREST DEDUCTION
Among the biggest tax perks of buying a home is the ability to deduct mortgage interest payments. But this deduction has undergone some changes recently, so taxpayers may need to do some catching up. This brief article explains how the tax break has changed....
With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. One option, which can be especially beneficial if children still have many years until heading off to college, is a Section 529 plan. This article explains why...
Budgeting, Legal, Taxes / 28.09.2018
TCJA DRAWS A SILVER LINING AROUND THE INDIVIDUAL AMT
The TCJA didn’t eliminate the individual AMT. But the law did draw a silver lining around it. Revised rules now lessen the likelihood that many taxpayers will owe substantial taxes under the AMT for 2018 through 2025. This article explains why. A sidebar warns higher-income...
Spouses who own profitable, unincorporated businesses often find the high self-employment (SE) tax bills burdensome. Fortunately, there may be ways to ease that burden. This article suggests two ways that spouse-owners can lower their tax bills....
Legal, Taxes / 17.09.2018
WHEN IS BARTERING TAXABLE?
The notion of bartering may conjure an image of a crowded, bustling medieval bazaar. But these types of transactions continue to occur in today’s high-tech modern world. This brief article discusses whether and when bartering is taxable....
Budgeting, Taxes / 27.08.2018
TAKE NOTE OF THE DISTINCTIVE FEATURES OF ROTH IRA
For some people, Roth IRAs can offer income and estate tax benefits that are preferable to those offered by traditional IRAs. However, it’s important to make the right choice. This article discusses the distinctive features of Roth IRAs. A sidebar notifies readers of an important...
Every taxpayer with a high degree of wealth shouldn’t let estate tax liability or gift tax liability take their heirs by surprise. This article provides the latest info on estate and gift tax exclusions and exemptions, and explains how to help forecast one’s estate tax...
Budgeting, Legal, Taxes / 10.08.2018
LLC AND LLP OWNERS SHOULD BEFRIEND THE PAL RULES
The IRS has treated owners of LLCs and LLPs as limited partners for purposes of the passive activity loss rules. This could be a tax negative. As this article explains, however, LLC and LLP owners can now be treated as general partners, which means they...
Budgeting, Legal, Taxes / 30.07.2018
DON’T LET THE KIDDIE TAX PLAY COSTLY GAMES WITH YOU
It’s not uncommon for parents, grandparents and others to make gifts to minors and college students. When considering this idea, taxpayers must beware of the kiddie tax. This tax trap could leave them liable for a substantial amount of tax dollars that they may never...
Budgeting, Legal, Taxes / 25.07.2018
4 QUESTIONS TO ASK BEFORE HIRING HOUSEHOLD HELP
When someone hires household help — such as an in-home caregiver, gardener or personal chef — that individual may become an employer. With employer status comes a variety of specific tax obligations. This article explores four questions that everyone should ask before saying, “You’re hired.”...
Taxes / 23.07.2018
ESOPS OFFER BUSINESS TAX AND OTHER BENEFITS
Every business owner wishes his or her employees worked as if they owned the company. An employee stock ownership plan (ESOP) can make that a reality while offering tax breaks and a smoother path for succession planning. This article discusses how ESOPs work and their...
Budgeting, Taxes / 09.07.2018
RETIREMENT PLAN OPTIONS FOR BUSINESS OWNERS
Business owners often have most of their money tied up in their companies, making saving for retirement especially challenging. Those who haven’t already set up a tax-advantaged retirement plan should think about setting one up this year. This brief article offers up a few options...
Taxes / 02.07.2018
TAX CALENDAR
This calendar notes important tax deadlines for the third quarter of 2018....
Legal, Taxes / 25.06.2018
HOW TO BE TAX-SMART WHEN IT COMES TO MUTUAL FUNDS
Many people overlook tax considerations when planning their mutual fund investments. This article examines four techniques investors might consider, including avoiding year-end investments and investing in tax-efficient funds, if their portfolios include mutual funds. A sidebar explains how to account for cost basis....
Passage of the Tax Cuts and Jobs Act has led to confusion over some longstanding deductions. In response, the IRS recently issued a statement clarifying the rules surrounding the deductibility of home equity interest. This article compares the old rules to these new ones....
Legal, Taxes / 11.06.2018
3 COMMON TYPES OF IRS TAX PENALTIES
Around this time of year, many people have filed and forgotten about their 2017 tax returns. But one could get an abrupt reminder in the form of an IRS penalty. This article discusses three common types and how to seek relief....
Growth, Legal, Taxes / 01.06.2018
BEWARE OF TAX TRAPS WHEN MAKING AN EMPLOYEE A PARTNER
In today’s competitive employment market, a business organized as a partnership may want to promote an employee to a full partner. This brief article advises caution before acting, explaining some of the potential tax traps of doing so....
Budgeting, Growth, Insurance / 28.05.2018
DO YOU HAVE YOUR OWN WEALTH MANAGEMENT PLAN?
Everyone should have a wealth management plan. But taking a boilerplate approach could prevent you from achieving your specific goals. This article raises some key points to consider when devising a truly customized plan....
Everyone loves a juicy tax refund, but why wait to receive the money? By adjusting one’s withholding and/or estimated tax payments, a taxpayer can enjoy that money throughout the year. This article lists some circumstances under which adjustments are particularly advisable and explains how to...
In an increasingly globalized society, many people choose to open offshore accounts to deposit a portion of their wealth. This article details how to disclose offshore accounts to the federal government and explains the penalties that can result from failing to do so....
Virtually everyone has a credit and debit card these days. But many people still live in fear of these plastic necessities because they’re unfamiliar with the fine print of the arrangements involved. This article explores the potential liability of both credit and debit cards, and...
Taxes / 23.04.2018
NO KIDDING: CHILD CREDIT TO GET EVEN MORE VALUABLE
The child credit has long been a valuable tax break. But, with the passage of the Tax Cuts and Jobs Act (TCJA) late last year, it’s now even better — at least for a while. This article provides some details that every family should know....
Legal, Taxes / 16.04.2018
WHAT IS “REASONABLE COMPENSATION,” ANYWAY?
The issue of reasonable owners’ compensation often comes up in federal tax inquiries, shareholder disputes and divorce cases. Determining what’s reasonable, and therefore defensible in court, requires a financial expert. This article describes some of the ways that such experts do their work....
Taxes / 13.04.2018
THE NEW DEAL ON EMPLOYEE MEALS (AND ENTERTAINMENT)
As a matter of convenience, many of today’s employers provide meals to employees. A recent tax law change, however, may curtail this practice because it limits the tax benefits. This brief article looks at the changing deductibility rules brought forth by the recently passed Tax...
Taxes / 09.04.2018
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2018....
Taxes / 26.03.2018
THE CHANGING FACE OF PERSONAL EXEMPTIONS AND
Changes lie ahead for two fundamental elements of individual tax planning: personal exemptions and the standard deduction. This brief article clarifies key amounts for both the 2017 tax year and for 2018 through 2025....
Legal / 19.03.2018
HEED THE WARNING SIGNS OF W-2 PHISHING SCAMS
A growing number of businesses have been victimized by W-2 phishing scams by which criminals trick business owners or employees into divulging sensitive personal data. This article explores how the crime works and what employers can do to stop it....
Inheritance, Legal, Taxes / 12.03.2018
BUSINESS OWNERS: BRUSH UP ON BONUS DEPRECIATION
Business owners who go shopping for company assets this year should brush up on the enhanced bonus depreciation tax breaks created under the Tax Cuts and Jobs Act passed late last year. This article explains how the rules differ under previous tax law and the...
Inheritance, Legal, Taxes / 05.03.2018
DYNASTY TRUSTS ARE MORE VALUABLE THAN EVER
The Tax Cuts and Jobs Act, signed into law this past December, has brought great changes to estate planning. In doing so, it bolstered the potential value of dynasty trusts. This article explains why these trusts are well worth considering for tax purposes, while a...
The domestic production activities deduction provides a tax break for certain “domestic production activities.” Unfortunately, many businesses tend to overlook it because they believe the tax break applies only to a few industries. This article points out that the deduction remains available to a wide...
Budgeting, Taxes / 16.02.2018
MAKING 2017 RETIREMENT PLAN CONTRIBUTIONS IN 2018
The clock is ticking down to the tax filing deadline. The good news is that individuals may still be able to save on their impending 2017 tax bills by making contributions to certain retirement plans. This article looks at deadlines, limits and phaseout ranges for...
Taxes / 09.02.2018
DO YOU KNOW THE TAX IMPACT OF YOUR COLLECTIBLES?
They say one person’s trash is another person’s treasure. This may hold true when it comes to collectibles — those various objects d’art for which many people will pay good money. This article touches on some of the important points regarding how the sale or...
It’s not uncommon for adult children to help support their aging parents. Those in this position might qualify for an adult-dependent exemption on their 2017 tax returns. This article explores the basic qualifications and some important factors related to this tax break....
Legal, Taxes / 26.01.2018
STILL IMPORTANT: THE TAX IMPACT OF BUSINESS TRAVEL
With conference calls and Web meetings increasingly prevalent, business travel isn’t what it used to be. But many companies still send employees out on the road. This article describes important concepts related to travel, such as travel expenses as a fringe benefit, establishing an accountable...
Legal, Taxes / 19.01.2018
HELP PREVENT TAX IDENTITY THEFT BY FILING EARLY
Many people might not start thinking about filing a tax return until close to this year’s April 17 deadline. But there’s another date to keep in mind: the day the IRS begins accepting 2017 returns in 2018. As this article explains, filing as close to...
Keeping up with the complexity of the Internal Revenue Code is challenging enough for employed individuals. But for owner-employees, the difficulty level is particularly high. This article explains how your business structure determines the rules you must abide by....
Budgeting, Legal, Taxes / 08.01.2018
4 FINANCIAL PLANNING TIPS FOR SECOND MARRIAGES
Every year, a substantial percentage of weddings aren’t first-time nuptials but second (or subsequent) marriages. This brief article offers four tips to help such partners better manage the situation....
Businesses with employees headed for retirement can provide a helpful service by educating these workers on rules regarding required minimum distributions (RMDs). If violated, these rules could trigger hefty penalties. This article explains RMD requirements for IRAs and 401(k)s. A sidebar looks at other RMD...
The most effective way to protect assets from future creditors is to transfer them to children or other family members with no strings attached. But, understandably, many wealthier individuals want to retain some control over their wealth. This article looks at one potential option of...
Budgeting, Taxes / 11.12.2017
5 COMMON MISTAKES WHEN APPLYING FOR FINANCIAL AID
Given the astronomical cost of college, even well-off parents should consider applying for financial aid. A single misstep, however, can harm a child’s eligibility. This article looks at five common mistakes....
Taxes / 04.12.2017
ENSURING YOUR YEAR-END DONATIONS ARE TAX DEDUCTIBLE
Many people decide to make donations at the end of the year. When doing so, it’s important to know the rules about whether such contributions will be considered tax deductible for 2017. This brief article discusses two important concepts: delivery dates and qualified charities....
Growth, Taxes / 29.11.2017
HANDLE WITH CARE: MUTUAL FUNDS AND TAXES
Many people overlook tax considerations when planning their mutual fund investments. This article offers some tax-savvy tips, including avoiding year-end investments and watching out for reinvested distributions. A sidebar explains why tax-inefficient funds should be directed to nontaxable accounts....
Taxes / 27.11.2017
BAD DEBTS AREN’T ALWAYS BAD NEWS
No business owner goes out of his or her way to acquire a bad debt. But they’re not always bad news. This article discusses how a company may be able to write off the noncollectable amount for tax purposes....
Budgeting, Insurance, Taxes / 13.11.2017
PONDERING THE PURCHASE OF A LIFE INSURANCE POLICY
What, if any, role life insurance should play in one’s financial plan depends on a variety of factors. This article examines some of those factors, including whether a person has dependents and his or her net worth....
Budgeting, Legal, Taxes / 06.11.2017
ARE FREQUENT FLYER MILES EVER TAXABLE?
Many people who accumulate frequent flyer miles assume that these valuable rewards aren’t taxable. This brief article explores the validity of this assumption....
Budgeting, Legal, Taxes / 27.10.2017
WILLS AND LIVING TRUSTS: ESTATE PLANNING IMPERATIVES
A well-crafted, up-to-date estate plan is an imperative for everyone. It can truly help ease the burdens on your family during a difficult time. This article looks at wills, living trusts and other important documents....
Budgeting, Taxes / 23.10.2017
3 STRATEGIES FOR HANDLING ESTIMATED TAX PAYMENTS
Estimated tax payments are required by self-employed individuals and sometimes those with income from interest, rent or dividends. Mishandling these payments could trigger penalties. This brief article offers three strategies for getting it right....
As its market and technological needs evolve, every company needs to change. At some point in the existence of many companies, the organization needs to go beyond change to transformation. This article examines the difference between the two concepts and how to go about transforming...
Taxes / 13.10.2017
TAX CALENDAR
This calendar notes important tax deadlines for the fourth quarter of 2017....
Owners occasionally borrow funds from their businesses. This article explains the importance of treating these transactions as bona fide loans and charging an “adequate” rate of interest. It also provides a list of factors the IRS considers when evaluating corporate advances to shareholders....
Budgeting, Insurance / 22.09.2017
5 KEYS TO DISASTER PLANNING FOR INDIVIDUALS
Disaster planning is usually associated with businesses. But individuals need to be prepared, too. This brief article covers five keys to such planning — insurance, asset documentation, document storage, cash and an emergency plan....
Tax-friendly ways to pay for health care are very much in play for many people. The three primary players are Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs). This article offers a brief overview of each one....
Independent contractors are playing a bigger and bigger role in our economy. But the federal government still has a vested interest in ensuring workers aren’t misclassified as independent contractors when they’re really bona fide employees. This article reviews the key factors used by the IRS...
Anyone who serves as a director or officer of a company, or even sits on the board of a nonprofit, needs to consider that this could make their personal assets vulnerable. This article suggests one way to gain some protection: through a directors and officers...
Inheritance, Taxes / 22.08.2017
SHIFTING CAPITAL GAINS TO YOUR CHILDREN
If you’re an investor looking to save tax dollars, your kids might be able to help you out. Giving appreciated stock or other investments to your children can minimize the impact of capital gains taxes. For this strategy to work best, however, your child must not...
Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, you may consider converting to an S corporation. This isn’t necessarily a bad idea, but it’s important to know the ramifications involved. Similarities and differences S and C corporations use...
Taxes / 28.07.2017
WHY YOU SHOULD (OR SHOULDN’T) PURSUE AN ACQUISITION
Like so many aspects of the national and global economies, merger and acquisition (M&A) activity tends to wax and wane. Nonetheless, billions of dollars continue to change hands annually, and an acquisition can be a great way to grow a business. So if one of...
Taxes / 02.07.2017
TAX CALENDAR
July 17 — If the monthly deposit rule applies, employers must deposit the tax for payments in June for Social Security, Medicare, withheld income tax and nonpayroll withholding. July 31 — If you have employees, a federal unemployment tax (FUTA) deposit is due if the FUTA liability through...
Taxes / 19.06.2017
IN DOWN YEARS, NOL RULES CAN OFFER TAX RELIEF
From time to time, a business may find that its operating expenses and other deductions for a particular year exceed its income. This is known as incurring a net operating loss (NOL). In such cases, companies (or their owners) may be able to snatch some tax...
Budgeting / 01.06.2017
THOUGHTS AND MUSINGS ON FAMILY BUDGETING
Simplicity is the key to a successful family budget. But every budget needs to cover all necessary items. To find the right balance, your budget should address two distinct facets of your family members’ lives: the near term and the long term. In the near term,...
Taxes / 03.05.2017
REVIEWING THE INNOCENT SPOUSE RELIEF RULES
Married couples don’t always agree — and taxes are no exception. In certain cases, an “innocent” spouse can apply for relief from the responsibility of paying tax, interest and penalties arising from a spouse’s (or former spouse’s) improperly handled tax return. Although it isn’t easy...
Once a relatively obscure concept, income in respect of a decedent (IRD) can create a surprisingly high tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there are ways to minimize or even eliminate the IRD...
Someone who’s terminally or chronically ill may lack the funds to cover significant medical costs. Although insurance policies have historically been held for the death benefits, it may be possible to sell a policy to a viatical settlement provider. This way, the individual can secure...
If your business has acquired, constructed or substantially improved a building recently, consider a cost segregation study. One of these studies can enable you to identify building costs that are properly allocable to tangible personal property rather than real property. And this may allow you...
Uncategorized / 07.03.2017
YOU’VE HIT THE JACKPOT! NOW WHAT?
When it comes to financial planning, most of us spend our time guarding against things that could go wrong. But what if something really good happens? Hitting the jackpot is obviously a nice problem to have. Yet an unexpected influx of cash can drive even...
As you file your 2016 income tax return, you may be wondering whether you’re eligible for tax breaks related to a niece who lives with you, or perhaps a stepson who spends only part of the year in your home. It all depends on whether,...
Uncategorized / 07.03.2017
4 TIPS FOR DONATING ARTWORK TO CHARITY
Individuals may want to donate artwork so it can be enjoyed by a wider audience or available for scholarly study or simply to make room for new artwork in their home. Here are four tips for donating artwork with an eye toward tax savings: 1. Get...
For many years, business owners had to ask themselves one question when it came to facing taxation in another state: Do we have “nexus”? This term indicates a business presence in a given state that’s substantial enough to trigger the state’s tax rules and obligations. Well,...
Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax...
Uncategorized / 01.12.2016
DON’T LET CAPITAL LOSSES GET YOU DOWN
DON’T LET CAPITAL LOSSES GET YOU DOWN...
They say timing is everything. And, when it comes to year-end tax planning, this expression certainly holds true for income and expenses. Know the basics When you don’t expect to be subject to the alternative minimum tax this year or next, deferring income to next year and...
Many business owners launch their companies from the front lines — as an employee. And it’s not uncommon for owners to stay in that role, working with their staff members to grow the business and guide its strategic direction. Come tax time, however, owner-employees face...
Uncategorized / 01.10.2016
HAVE A PENSION? BE SURE TO PLAN CAREFULLY
The traditional pension may seem like a thing of the past. But many workers are still counting on payouts from one of these “defined benefit” plans in retirement. If you’re among this group, it’s important to start thinking now about how you’ll receive the money...
Legal, Taxes, Technology / 01.10.2016
TAKE THE WORRY OUT OF BUSINESS VALUATIONS
Strategic perspectives Perhaps the most common purpose of a valuation is a prospective ownership transfer. Yet strategic investments (such as a new product or service line) can also greatly benefit from an accurate appraisal. As growth opportunities arise, business owners have only limited resources to pursue...
Uncategorized / 01.08.2016
TAX CALENDAR
October 17 — Personal returns that received an automatic six-month extension must be filed today and any tax, interest, and penalties due must be paid. · Electing large partnerships that received an additional six-month extension must file their Forms 1065-B today. · If the monthly deposit rule...