09
Dec
YEAR-END TAX AND FINANCIAL TO-DO LIST FOR INDIVIDUALS
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:...
06
Dec
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....
25
Nov
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...
22
Nov
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...
18
Oct
IS “BUNCHING” MEDICAL EXPENSES STILL FEASIBLE IN 2019?
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....
14
Oct
STEP CAREFULLY WITH LOANS BETWIXT A BUSINESS AND ITS OWNER
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 —...
26
Aug
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...
19
Aug
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...
09
Aug
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...
02
Aug
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...
28
Jun
TCJA INSPIRES MANY BUSINESS OWNERS TO RECONSIDER ENTITY CHOICE
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...
24
Jun
CONSIDER THE TAX ADVANTAGES OF QUALIFIED SMALL BUSINESS STOCK
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....
17
Jun
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....
14
Jun
ENSURING YOUR LONG-TERM CARE POLICY IS TAX-QUALIFIED
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...
31
May
INNOCENT SPOUSE RULES OFFER PROTECTION UNDER SOME CIRCUMSTANCES
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...
24
May
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...
17
May
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...
10
May
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....
29
Apr
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...
26
Apr
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...
22
Apr
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...
15
Apr
SMALL BUSINESS OWNERS SHOULD DOUBLE-CHECK THEIR TAX RETURNS
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....
09:00 /
Taxes
08
Apr
TAX CALENDAR
This calendar notes important tax deadlines for the second quarter of 2019....
29
Mar
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...
22
Mar
DEDUCTING CHARITABLE GIFTS DEPENDS ON A VARIETY OF FACTORS
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...
15
Mar
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...
08
Mar
THERE MAY BE UNCLAIMED PROPERTY WITH YOUR NAME ON IT
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....
25
Feb
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...
18
Feb
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...
11
Feb
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...