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....
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....
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....
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...
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...
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...
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....
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...
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....
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...
This calendar notes important tax deadlines for the fourth quarter of 2021....
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....
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...
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....
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...
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....
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....
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....
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....
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...
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...
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. ...
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...
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...
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....
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...
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....
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...
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...
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...
