
Tax Briefs
Holiday parties and gifts can help show your appreciation and provide tax breaks
With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea … Read More »
December 3rd
Tax Planning. Comments Off on Holiday parties and gifts can help show your appreciation and provide tax breaks
Medical expenses: What it takes to qualify for a tax deduction
As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, … Read More »
November 26th
Tax Planning. Comments Off on Medical expenses: What it takes to qualify for a tax deduction
What is your taxpayer filing status?
For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of … Read More »
November 19th
Tax Planning. Comments Off on What is your taxpayer filing status?
Using your 401(k) plan to save this year and next
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg.
If you’re not already … Read More »
November 12th
Tax Planning. Comments Off on Using your 401(k) plan to save this year and next
Small businesses: Stay clear of a severe payroll tax penalty
One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal … Read More »
November 5th
Tax Planning. Comments Off on Small businesses: Stay clear of a severe payroll tax penalty
Use a Coverdell ESA to help pay college, elementary and secondary school costs
There are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions … Read More »
October 15th
Tax Planning. Comments Off on Use a Coverdell ESA to help pay college, elementary and secondary school costs
Take advantage of the gift tax exclusion rules
As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use … Read More »
October 1st
Tax Planning. Comments Off on Take advantage of the gift tax exclusion rules
When is tax due on Series EE savings bonds?
You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE … Read More »
September 24th
Tax Planning. Comments Off on When is tax due on Series EE savings bonds?
Uncle Sam may provide relief from college costs on your tax return
We all know the cost of college is expensive. The latest figures from the College Board show that the average annual cost of tuition and fees was $10,230 for in-state students at public four-year universities — and $35,830 for students … Read More »
September 17th
Tax Planning. Comments Off on Uncle Sam may provide relief from college costs on your tax return
The next estimated tax deadline is September 16: Do you have to make a payment?
If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The third 2019 estimated tax payment deadline for individuals is Monday, … Read More »
September 3rd
Tax Planning. Comments Off on The next estimated tax deadline is September 16: Do you have to make a payment?
Taking distributions from your traditional IRA
If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (including a SEP-IRA). It’s even more critical to carefully plan for withdrawals from these retirement-savings vehicles.
Knowing the fine points of the IRA … Read More »
August 20th
Tax Planning. Comments Off on Taking distributions from your traditional IRA
What to do if your business receives a “no-match” letter
In the past few months, many businesses and employers nationwide have received “no-match” letters from the Social Security Administration (SSA). The purpose of these letters is to alert employers if there’s a discrepancy between the agency’s files and data reported … Read More »
August 13th
Tax Planning. Comments Off on What to do if your business receives a “no-match” letter
The tax implications of being a winner
If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune.
Winning at gambling
Whether you win at the casino, a bingo hall, or … Read More »
August 6th
Tax Planning. Comments Off on The tax implications of being a winner
The “kiddie tax” hurts families more than ever
Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, … Read More »
July 30th
Tax Planning, Uncategorized. Comments Off on The “kiddie tax” hurts families more than ever
The “nanny tax” must be paid for more than just nannies
You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal … Read More »
July 23rd
Tax Planning. Comments Off on The “nanny tax” must be paid for more than just nannies
It’s a good time to buy business equipment and other depreciable property
There’s good news about the Section 179 depreciation deduction for business property. The election has long provided a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time. And it … Read More »
July 16th
Tax Planning. Comments Off on It’s a good time to buy business equipment and other depreciable property
Volunteering for charity: Do you get a tax break?
If you’re a volunteer who works for charity, you may be entitled to some tax breaks if you itemize deductions on your tax return. Unfortunately, they may not amount to as much as you think your generosity is … Read More »
July 9th
Tax Planning. Comments Off on Volunteering for charity: Do you get a tax break?
You may have to pay tax on Social Security benefits
During your working days, you pay Social Security tax in the form of withholding from your salary or self-employment tax. And when you start receiving Social Security benefits, you may be surprised to learn that some of the payments may … Read More »
July 2nd
Tax Planning. Comments Off on You may have to pay tax on Social Security benefits
If your kids are off to day camp, you may be eligible for a tax break
Now that most schools are out for the summer, you might be sending your children to day camp. It’s often a significant expense. The good news: You might be eligible for a tax break for the cost.
The value of a … Read More »
June 26th
Tax Planning. Comments Off on If your kids are off to day camp, you may be eligible for a tax break
2019 Q3 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
June 18th
Tax Planning. Comments Off on 2019 Q3 tax calendar: Key deadlines for businesses and other employers
Donating your vehicle to charity may not be a taxwise decision
You’ve probably seen or heard ads urging you to donate your car to charity. “Make a difference and receive tax savings,” one organization states. But donating a vehicle may not result in a big tax deduction — or any deduction … Read More »
June 11th
Tax Planning. Comments Off on Donating your vehicle to charity may not be a taxwise decision
Thinking about moving to another state in retirement? Don’t forget about taxes
When you retire, you may consider moving to another state — say, for the weather or to be closer to your loved ones. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes … Read More »
June 4th
Tax Planning. Comments Off on Thinking about moving to another state in retirement? Don’t forget about taxes
The chances of IRS audit are down but you should still be prepared
The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined as compared with prior years. However, even though a small percentage of tax returns are being chosen for audit these days, … Read More »
May 28th
Tax Planning. Comments Off on The chances of IRS audit are down but you should still be prepared
Hire your children this summer: Everyone wins
If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you … Read More »
May 22nd
Tax Planning. Comments Off on Hire your children this summer: Everyone wins
Selling your home? Consider these tax implications
Spring and summer are the optimum seasons for selling a home. And interest rates are currently attractive, so buyers may be out in full force in your area. Freddie Mac reports that the average 30-year fixed mortgage rate was 4.14% … Read More »
May 15th
Tax Planning. Comments Off on Selling your home? Consider these tax implications
Check on your refund — and find out why the IRS might not send it
It’s that time of year when many people who filed their tax returns in April are checking their mail or bank accounts to see if their refunds have landed. According to the IRS, most refunds are issued in less than … Read More »
May 7th
Tax Planning. Comments Off on Check on your refund — and find out why the IRS might not send it
Plug in tax savings for electric vehicles
While the number of plug-in electric vehicles (EVs) is still small compared with other cars on the road, it’s growing — especially in certain parts of the country. If you’re interested in purchasing an electric or hybrid vehicle, you may … Read More »
April 30th
Tax Planning. Comments Off on Plug in tax savings for electric vehicles
How entrepreneurs must treat expenses on their tax returns
Have you recently started a new business? Or are you contemplating starting one? Launching a new venture is a hectic, exciting time. And as you know, before you even open the doors, you generally have to spend a lot of … Read More »
April 23rd
Tax Planning. Comments Off on How entrepreneurs must treat expenses on their tax returns
Three questions you may have after you file your return
Once your 2018 tax return has been successfully filed with the IRS, you may still have some questions. Here are brief answers to three questions that we’re frequently asked at this time of year.
Question #1: What … Read More »
April 16th
Tax Planning. Comments Off on Three questions you may have after you file your return
Seniors: Medicare premiums could lower your tax bill
Americans who are 65 and older qualify for basic Medicare insurance, and they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially if you’re married and both … Read More »
April 9th
Tax Planning. Comments Off on Seniors: Medicare premiums could lower your tax bill
Make a deductible IRA contribution for 2018. It’s not too late!
Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2018 tax year between now and the tax filing deadline and claim … Read More »
April 2nd
Tax Planning. Comments Off on Make a deductible IRA contribution for 2018. It’s not too late!
Still working after age 70½? You may not have to begin 401(k) withdrawals
If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required withdrawals from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception … Read More »
March 26th
Tax Planning. Comments Off on Still working after age 70½? You may not have to begin 401(k) withdrawals
Stretch your college student’s spending money with the dependent tax credit
If you’re the parent of a child who is age 17 to 23, and you pay all (or most) of his or her expenses, you may be surprised to learn you’re not eligible for the child tax credit. But there’s … Read More »
March 19th
Tax Planning, Uncategorized. Comments Off on Stretch your college student’s spending money with the dependent tax credit
The 2018 gift tax return deadline is almost here
Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if … Read More »
March 12th
Tax Department, Tax Planning. Comments Off on The 2018 gift tax return deadline is almost here
Vehicle-expense deduction ins and outs for individual taxpayers
It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return.
For 2017, miles … Read More »
March 6th
Tax Department, Tax Planning. Comments Off on Vehicle-expense deduction ins and outs for individual taxpayers
Beware the Ides of March — if you own a pass-through entity
Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March … Read More »
February 27th
Tax Department, Tax Planning. Comments Off on Beware the Ides of March — if you own a pass-through entity
Some of your deductions may be smaller (or nonexistent) when you file your 2018 tax return
While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks, it limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. Here are five deductions you may see … Read More »
February 19th
Tax Department, Tax Planning. Comments Off on Some of your deductions may be smaller (or nonexistent) when you file your 2018 tax return
3 big TCJA changes affecting 2018 individual tax returns and beyond
When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act … Read More »
February 12th
Tax Department, Tax Planning. Comments Off on 3 big TCJA changes affecting 2018 individual tax returns and beyond
Why you shouldn’t wait to file your 2018 income tax return
The IRS opened the 2018 income tax return filing season on January 28. Even if you typically don’t file until much closer to the April 15 deadline, this year consider filing as soon as you can. Why? You can potentially … Read More »
February 5th
Tax Department, Tax Planning. Comments Off on Why you shouldn’t wait to file your 2018 income tax return
Depreciation-related breaks on business real estate: What you need to know when you file your 2018 return
Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But special tax breaks that allow deductions to be taken … Read More »
January 29th
Tax Planning. Comments Off on Depreciation-related breaks on business real estate: What you need to know when you file your 2018 return
There’s still time to get substantiation for 2018 donations
If you’re like many Americans, letters from your favorite charities have been appearing in your mailbox in recent weeks acknowledging your 2018 year-end donations. But what happens if you haven’t received such a letter — can you still claim an … Read More »
January 22nd
Tax Planning. Comments Off on There’s still time to get substantiation for 2018 donations
What will your marginal income tax rate be?
While the Tax Cuts and Jobs Act (TCJA) generally reduced individual tax rates for 2018 through 2025, some taxpayers could see their taxes go up due to reductions or eliminations of certain tax breaks — and, in some cases, due … Read More »
January 15th
Tax Department, Tax Planning. Comments Off on What will your marginal income tax rate be?
A refresher on major tax law changes for small-business owners
The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to … Read More »
January 2nd
Tax Planning. Comments Off on A refresher on major tax law changes for small-business owners
You may be able to save more for retirement in 2019
Retirement plan contribution limits are indexed for inflation, and many have gone up for 2019, giving you opportunities to increase your retirement savings:
Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans: $19,000 (up from $18,500)
Contributions to defined contribution plans: $56,000 … Read More »
December 27th
Retirement Planning, Tax Planning. Comments Off on You may be able to save more for retirement in 2019
Act soon to save 2018 taxes on your investments
Do you have investments outside of tax-advantaged retirement plans? If so, you might still have time to shrink your 2018 tax bill by selling some investments, you just need to carefully select which investments you sell.
Try balancing gains and losses
If … Read More »
December 18th
Tax Planning. Comments Off on Act soon to save 2018 taxes on your investments
Year-end tax and financial to-do list for individuals
With the dawn of 2019 on the near horizon, here’s a quick list of tax and financial to-dos you should address before 2018 ends:
Check your FSA balance. If you have a Flexible Spending Account (FSA) for health care expenses, you … Read More »
December 12th
Tax Department, Tax Planning. Comments Off on Year-end tax and financial to-do list for individuals
2019 Q1 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
December 4th
Tax Department, Tax Planning. Comments Off on 2019 Q1 tax calendar: Key deadlines for businesses and other employers
Does prepaying property taxes make sense anymore?
Prepaying property taxes related to the current year but due the following year has long been one of the most popular and effective year-end tax-planning strategies. But does it still make sense in 2018?
The answer, for some people, is yes … Read More »
November 27th
Tax Department, Tax Planning. Comments Off on Does prepaying property taxes make sense anymore?
Catch-up retirement plan contributions can be particularly advantageous post-TCJA
Will you be age 50 or older on December 31? Are you still working? Are you already contributing to your 401(k) plan or Savings Incentive Match Plan for Employees (SIMPLE) up to the regular annual limit? Then you may want … Read More »
November 20th
Retirement Planning, Tax Planning. Comments Off on Catch-up retirement plan contributions can be particularly advantageous post-TCJA
Mutual funds: Handle with care at year end
As we approach the end of 2018, it’s a good idea to review the mutual fund holdings in your taxable accounts and take steps to avoid potential tax traps. Here are some tips.
Avoid surprise capital gains
Unlike with stocks, you can’t … Read More »
November 13th
Tax Planning. Comments Off on Mutual funds: Handle with care at year end
Buy business assets before year end to reduce your 2018 tax liability
The Tax Cuts and Jobs Act (TCJA) has enhanced two depreciation-related breaks that are popular year-end tax planning tools for businesses. To take advantage of these breaks, you must purchase qualifying assets and place them in service by the end … Read More »
November 6th
Tax Department, Tax Planning. Comments Off on Buy business assets before year end to reduce your 2018 tax liability
Donate appreciated stock for twice the tax benefits
A tried-and-true year end tax strategy is to make charitable donations. As long as you itemize and your gift qualifies, you can claim a charitable deduction. But did you know that you can enjoy an additional tax benefit if you … Read More »
October 31st
Tax Planning. Comments Off on Donate appreciated stock for twice the tax benefits
Could “bunching” medical expenses into 2018 save you tax?
Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your … Read More »
October 23rd
Tax Department, Tax Planning. Comments Off on Could “bunching” medical expenses into 2018 save you tax?
Consider all the tax consequences before making gifts to loved ones
Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime … Read More »
October 17th
Tax Department, Tax Planning. Comments Off on Consider all the tax consequences before making gifts to loved ones
Tax-free fringe benefits help small businesses and their employees
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Benefits that are tax-free are especially attractive to employees. Let’s take a quick look … Read More »
October 11th
Tax Department, Tax Planning. Comments Off on Tax-free fringe benefits help small businesses and their employees
Charitable IRA rollovers may be especially beneficial in 2018
If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions. This break may be especially beneficial now because … Read More »
October 2nd
Tax Department, Tax Planning. Comments Off on Charitable IRA rollovers may be especially beneficial in 2018
Tax planning for investments gets more complicated
For investors, fall is a good time to review year-to-date gains and losses. Not only can it help you assess your financial health, but it also can help you determine whether to buy or sell investments before year end to … Read More »
September 25th
Tax Department, Tax Planning. Comments Off on Tax planning for investments gets more complicated
The tax deduction ins and outs of donating artwork to charity
If you’re charitably inclined and you collect art, appreciated artwork can make one of the best charitable gifts from a tax perspective. In general, donating appreciated property is doubly beneficial because you can both enjoy a valuable tax deduction and … Read More »
September 19th
Tax Department, Tax Planning. Comments Off on The tax deduction ins and outs of donating artwork to charity
2018 Q4 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
September 11th
Tax Department, Tax Planning. Comments Off on 2018 Q4 tax calendar: Key deadlines for businesses and other employers
Do you need to make an estimated tax payment by September 17?
To avoid interest and penalties, you must make sufficient federal income tax payments long before your April filing deadline through withholding, estimated tax payments, or a combination of the two. The third 2018 estimated tax payment deadline for individuals is … Read More »
September 4th
Tax Department, Tax Planning. Comments Off on Do you need to make an estimated tax payment by September 17?
Back-to-school time means a tax break for teachers
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 … Read More »
August 29th
Tax Department, Tax Planning. Comments Off on Back-to-school time means a tax break for teachers
Play your tax cards right with gambling wins and losses
If you gamble, be sure you understand the tax consequences. Both wins and losses can affect your income tax bill. And changes under the Tax Cuts and Jobs Act (TCJA) could also have an impact.
Wins and taxable income
You must report … Read More »
August 21st
Tax Planning. Comments Off on Play your tax cards right with gambling wins and losses
Choosing the right accounting method for tax purposes
The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures … Read More »
August 14th
Tax Cuts and Jobs Act (TCJA), Tax Planning. Comments Off on Choosing the right accounting method for tax purposes
The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible
Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But what if you convert your traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover … Read More »
August 7th
Tax Cuts and Jobs Act (TCJA), Tax Planning. Comments Off on The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible
Do you still need to worry about the AMT?
There was talk of repealing the individual alternative minimum tax (AMT) as part of last year’s tax reform legislation. A repeal wasn’t included in the final version of the Tax Cuts and Jobs Act (TCJA), but the TCJA will reduce … Read More »
July 31st
Tax Planning. Comments Off on Do you still need to worry about the AMT?
Why the “kiddie tax” is more dangerous than ever
Once upon a time, some parents and grandparents would attempt to save tax by putting investments in the names of their young children or grandchildren in lower income tax brackets. To discourage such strategies, Congress created the “kiddie” tax back … Read More »
July 24th
Tax Planning. Comments Off on Why the “kiddie tax” is more dangerous than ever
Close-up on the new QBI deduction’s wage limit
The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S … Read More »
July 18th
Tax Planning. Comments Off on Close-up on the new QBI deduction’s wage limit
What you can deduct when volunteering
Because donations to charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you — your time — would also be deductible. Unfortunately, that’s not … Read More »
July 10th
Tax Planning. Comments Off on What you can deduct when volunteering
Home green home: Save tax by saving energy
“Going green” at home — whether it’s your principal residence or a second home — can reduce your tax bill in addition to your energy bill, all while helping the environment, too. The catch is that, to reap all three … Read More »
July 3rd
Tax Planning. Comments Off on Home green home: Save tax by saving energy
Do you know the ABCs of HSAs, FSAs and HRAs?
There continues to be much uncertainty about the Affordable Care Act and how such uncertainty will impact health care costs. So it’s critical to leverage all tax-advantaged ways to fund these expenses, including HSAs, FSAs and HRAs. Here’s how to … Read More »
June 26th
Tax Planning. Comments Off on Do you know the ABCs of HSAs, FSAs and HRAs?
2018 Q3 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
June 19th
The tax impact of the TCJA on estate planning
The massive changes the Tax Cuts and Jobs Act (TCJA) made to income taxes have garnered the most attention. But the new law also made major changes to gift and estate taxes. While the TCJA didn’t repeal these taxes, it … Read More »
June 12th
Factor in state and local taxes when deciding where to live in retirement
Many Americans relocate to another state when they retire. If you’re thinking about such a move, state and local taxes should factor into your decision.
Income, property and sales tax
Choosing a state that has no personal income tax may appear to … Read More »
June 5th
Saving tax on restricted stock awards with the Sec. 83(b) election
Today many employees receive stock-based compensation from their employer as part of their compensation and benefits package. The tax consequences of such compensation can be complex — subject to ordinary-income, capital gains, employment and other taxes. But if you receive … Read More »
May 29th
The TCJA changes some rules for deducting pass-through business losses
It’s not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole … Read More »
May 22nd
Be aware of the tax consequences before selling your home
In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll … Read More »
May 16th
Get started on 2018 tax planning now!
With the April 17 individual income tax filing deadline behind you (or with your 2017 tax return on the back burner if you filed for an extension), you may be hoping to not think about taxes for the next several … Read More »
May 2nd
Tax document retention guidelines for small businesses
You may have breathed a sigh of relief after filing your 2017 income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and … Read More »
April 24th
Individual tax calendar: Important deadlines for the remainder of 2018
While April 15 (April 17 this year) is the main tax deadline on most individual taxpayers’ minds, there are others through the rest of the year that you also need to be aware of. To help you make sure you … Read More »
April 17th
Haven’t filed your 2017 income tax return yet? Beware of these pitfalls
The federal income tax filing deadline is slightly later than usual this year — April 17 — but it’s now nearly upon us. So, if you haven’t filed your individual return yet, you may be thinking about an extension. Or … Read More »
April 10th
You still have time to make 2017 IRA contributions
Tax-advantaged retirement plans like IRAs allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. The deadline for 2017 contributions is April 17, 2018. Deductible contributions will lower your 2017 tax bill, but even nondeductible … Read More »
April 4th
2018 Q2 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
March 27th
Home-related tax breaks are valuable on 2017 returns, will be less so for 2018
Home ownership is a key element of the American dream for many, and the U.S. tax code includes many tax breaks that help support this dream. If you own a home, you may be eligible for several valuable breaks when … Read More »
March 20th
Casualty losses can provide a 2017 deduction, but rules tighten for 2018
If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your 2017 federal income tax return. For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends … Read More »
March 13th
Size of charitable deductions depends on many factors
Whether you’re claiming charitable deductions on your 2017 return or planning your donations for 2018, be sure you know how much you’re allowed to deduct. Your deduction depends on more than just the actual amount you donate.
Type of gift
One of … Read More »
March 6th
Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future
If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, … Read More »
February 27th
Tax deduction for moving costs: 2017 vs. 2018
If you moved for work-related reasons in 2017, you might be able to deduct some of the costs on your 2017 return — even if you don’t itemize deductions. (Or, if your employer reimbursed you for moving expenses, that reimbursement … Read More »
February 21st
Families with college students may save tax on their 2017 returns with one of these breaks
Whether you had a child in college (or graduate school) last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return. One such break that had expired December 31, 2016, was … Read More »
February 13th
TCJA temporarily lowers medical expense deduction threshold
With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and … Read More »
February 6th
Two tax credits just for small businesses may reduce your 2017 and 2018 tax bills
Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or … Read More »
January 30th
Can you deduct home office expenses?
Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction.
Changes under the … Read More »
January 23rd
Personal exemptions and standard deductions and tax credits, oh my!
Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to … Read More »
January 16th
Don’t be a victim of tax identity theft: File your 2017 return early
The IRS has just announced that it will begin accepting 2017 income tax returns on January 29. You may be more concerned about the April 17 filing deadline, or even the extended deadline of October 15 (if you file for … Read More »
January 9th
The TCJA temporarily expands bonus depreciation
The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, … Read More »
January 2nd
How Might the New Tax Reform Law Affect You?
President Trump and Republican members of Congress say the Tax Cuts and Jobs Act (TCJA) will bring $3.2 trillion in tax cuts. Now that the bill has passed, everyone wants to know how much they’ll save.
Unfortunately, the tax bill won’t … Read More »
December 27th
Landmark Tax Reform Bill Passes
The new tax reform law — commonly referred to as the “Tax Cuts and Jobs Act” (TCJA) — is the most significant tax legislation in decades. Now businesses and individuals are trying to digest the details and evaluate how the … Read More »
December 27th
Tax Cuts and Jobs Act: Key provisions affecting individuals
On December 20, Congress completed passage of the largest federal tax reform law in more than 30 years. Commonly called the “Tax Cuts and Jobs Act” (TCJA), the new law means substantial changes for individual taxpayers.
The following is a brief … Read More »
December 26th
401(k) retirement plan contribution limit increases for 2018; most other limits are stagnant
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2018. But one piece of good news for taxpayers who’re already maxing out their contributions is that the 401(k) limit … Read More »
December 19th
What you need to know about year-end charitable giving in 2017
Charitable giving can be a powerful tax-saving strategy: Donations to qualified charities are generally fully deductible, and you have complete control over when and how much you give. Here are some important considerations to keep in mind this year to … Read More »
December 12th
2018 Q1 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
December 5th
Even if your income is high, your family may be able to benefit from the 0% long-term capital gains rate
We’re entering the giving season, and if making financial gifts to your loved ones is part of your plans — or if you’d simply like to reduce your capital gains tax — consider giving appreciated stock instead of cash this … Read More »
November 28th
You may need to add RMDs to your year-end to-do list
As the end of the year approaches, most of us have a lot of things on our to-do lists, from gift shopping to donating to our favorite charities to making New Year’s Eve plans. For taxpayers “of a certain age” … Read More »
November 21st
Why you may want to accelerate your property tax payment into 2017
Accelerating deductible expenses, such as property tax on your home, into the current year typically is a good idea. Why? It will defer tax, which usually is beneficial. Prepaying property tax may be especially beneficial this year, because proposed tax … Read More »
November 14th
2017 might be your last chance to hire veterans and claim a tax credit
With Veterans Day on November 11, it’s an especially good time to think about the sacrifices veterans have made for us and how we can support them. One way businesses can support veterans is to hire them. The Work Opportunity … Read More »
November 7th
The ins and outs of tax on “income investments”
Many investors, especially more risk-averse ones, hold much of their portfolios in “income investments” — those that pay interest or dividends, with less emphasis on growth in value. But all income investments aren’t alike when it comes to taxes. So … Read More »
October 31st
Retirement savings opportunity for the self-employed
Did you know that if you’re self-employed you may be able to set up a retirement plan that allows you to contribute much more than you can contribute to an IRA or even an employer-sponsored 401(k)? There’s still time to … Read More »
October 24th
2 ACA taxes that may apply to your exec comp
If you’re an executive or other key employee, you might be rewarded for your contributions to your company’s success with compensation such as restricted stock, stock options or nonqualified deferred compensation (NQDC). Tax planning for these forms of “exec comp,” … Read More »
October 18th
Accelerate your retirement savings with a cash balance plan
Business owners may not be able to set aside as much as they’d like in tax-advantaged retirement plans. Typically, they’re older and more highly compensated than their employees, but restrictions on contributions to 401(k) and profit-sharing plans can hamper retirement-planning … Read More »
October 10th
“Bunching” medical expenses will be a tax-smart strategy for many in 2017
Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only if they exceed that floor (typically a specific percentage of your income). One example is the medical expense deduction.
Because … Read More »
October 3rd
Investors: Beware of the wash sale rule
A tried-and-true tax-saving strategy for investors is to sell assets at a loss to offset gains that have been realized during the year. So if you’ve cashed in some big gains this year, consider looking for unrealized losses in your … Read More »
September 26th
Why you should boost your 401(k) contribution rate between now and year end
One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step.
If you’re not already contributing the … Read More »
September 20th
2017 Q4 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
September 12th
Watch out for potential tax pitfalls of donating real estate to charity
Charitable giving allows you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. For … Read More »
September 5th
The ABCs of the tax deduction for educator expenses
At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s … Read More »
August 29th
Yes, you can undo a Roth IRA conversion
Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA — subject to income taxes on all earnings and deductible contributions … Read More »
August 23rd
Put your audit in reverse to save sales and use tax
It’s a safe bet that state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — … Read More »
August 15th
Will Congress revive expired tax breaks?
Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep … Read More »
August 8th
A refresher on the ACA’s tax penalty on individuals without health insurance
Now that Affordable Care Act (ACA) repeal and replacement efforts appear to have collapsed, at least for the time being, it’s a good time for a refresher on the tax penalty the ACA imposes on individuals who fail to have … Read More »
August 1st
3 midyear tax planning strategies for individuals
In the quest to reduce your tax bill, year end planning can only go so far. Tax-saving strategies take time to implement, so review your options now. Here are three strategies that can be more effective if you begin executing … Read More »
July 25th
Three midyear tax planning strategies for business
Tax reform has been a major topic of discussion in Washington, but it’s still unclear exactly what such legislation will include and whether it will be signed into law this year. However, the last major tax legislation that was signed … Read More »
July 18th
Own a vacation home? Adjusting rental vs. personal use might save taxes
Now that we’ve hit midsummer, if you own a vacation home that you both rent out and use personally, it’s a good time to review the potential tax consequences:
If you rent it out for less than 15 days: You don’t … Read More »
July 11th
Summer is a good time to start your 2017 tax planning and organize your tax records
You may be tempted to forget all about taxes during summertime, when “the livin’ is easy,” as the Gershwin song goes. But if you start your tax planning now, you may avoid an unpleasant tax surprise when you file next … Read More »
July 5th
2017 Q3 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
June 20th
Pay attention to the details when selling investments
The tax consequences of the sale of an investment, as well as your net return, can be affected by a variety of factors. You’re probably focused on factors such as how much you paid for the investment vs. how much … Read More »
June 13th
Donating a vehicle might not provide the tax deduction you expect
All charitable donations aren’t created equal — some provide larger deductions than others. And it isn’t necessarily just how much or even what you donate that matters. How the charity uses your donation might also affect your deduction.
Take vehicle donations, … Read More »
May 30th
Business owners: When it comes to IRS audits, be prepared
If you recently filed your 2016 income tax return (rather than filing for an extension) you may now be wondering whether it’s likely that your business could be audited by the IRS based on your filing. Here’s what every business … Read More »
May 23rd
Real estate investor vs. professional: Why it matters
Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive … Read More »
May 16th
Operating across state lines presents tax risks — or possibly rewards
It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so … Read More »
May 9th
Turning next year’s tax refund into cash in your pocket now
Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government … Read More »
May 2nd
Do you know the tax implications of your C corp.’s buy-sell agreement?
Private companies with more than one owner should have a buy-sell agreement to spell out how ownership shares will change hands should an owner depart. For businesses structured as C corporations, the agreements also have significant tax implications that are … Read More »
April 25th
Individual tax calendar: Key deadlines for the remainder of 2017
While April 15 (April 18 this year) is the main tax deadline on most individual taxpayers’ minds, there are others through the rest of the year that are important to be aware of. To help you make sure you don’t … Read More »
April 18th
A timely postmark on your tax return may not be enough to avoid late-filing penalties
Because of a weekend and a Washington, D.C., holiday, the 2016 tax return filing deadline for individual taxpayers is Tuesday, April 18. The IRS considers a paper return that’s due April 18 to be timely filed if it’s postmarked by … Read More »
April 11th
Saving tax with home-related deductions and exclusions
Currently, home ownership comes with many tax-saving opportunities. Consider both deductions and exclusions when you’re filing your 2016 return and tax planning for 2017:
Property tax deduction. Property tax is generally fully deductible — unless you’re subject to the alternative minimum … Read More »
April 4th
2017 Q2 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to … Read More »
March 28th
Who can — and who should — take the American Opportunity credit?
If you have a child in college, you may be eligible to claim the American Opportunity credit on your 2016 income tax return. If, however, your income is too high, you won’t qualify for the credit — but your child … Read More »
March 21st
2016 IRA contributions — it’s not too late!
Yes, there’s still time to make 2016 contributions to your IRA. The deadline for such contributions is April 18, 2017. If the contribution is deductible, it will lower your 2016 tax bill. But even if it isn’t, making a 2016 … Read More »
March 14th
When an elderly parent might qualify as your dependent
It’s not uncommon for adult children to help support their aging parents. If you’re in this position, you might qualify for the adult-dependent exemption. It allows eligible taxpayers to deduct up to $4,050 for each adult dependent claimed on their … Read More »
March 7th
Tangible property safe harbors help maximize deductions
If last year your business made repairs to tangible property, such as buildings, machinery, equipment or vehicles, you may be eligible for a valuable deduction on your 2016 income tax return. But you must make sure they were truly “repairs,” … Read More »
February 28th
Deduct all of the mileage you’re entitled to — but not more
Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. But you might also be able to … Read More »
February 21st
Do you need to file a 2016 gift tax return by April 18?
Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason … Read More »
February 14th
What you need to know about the tax treatment of ISOs
Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a … Read More »
February 7th
The investment interest expense deduction: Less beneficial than you might think
Investment interest — interest on debt used to buy assets held for investment, such as margin debt used to buy securities — generally is deductible for both regular tax and alternative minimum tax purposes. But special rules apply that can … Read More »
January 24th
Deduction for state and local sales tax benefits some, but not all, taxpayers
The break allowing taxpayers to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes was made “permanent” a little over a year ago. This break can be valuable to those residing … Read More »
January 17th
Can you pay bonuses in 2017 but deduct them this year?
You may be aware of the rule that allows businesses to deduct bonuses employees have earned during a tax year if the bonuses are paid within 2½ months after the end of that year (by March 15 for a calendar-year … Read More »
December 6th
Tax Department, Tax Planning. Comments Off on Can you pay bonuses in 2017 but deduct them this year?
Ensure your year-end donations will be deductible on your 2016 return
Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible … Read More »
November 29th
Tax Planning. Comments Off on Ensure your year-end donations will be deductible on your 2016 return
Accelerating your property tax deduction to reduce your 2016 tax bill
Smart timing of deductible expenses can reduce your tax liability, and poor timing can unnecessarily increase it. When you don’t expect to be subject to the alternative minimum tax (AMT) in the current year, accelerating deductible expenses into the current … Read More »
November 22nd
Tax Planning. Comments Off on Accelerating your property tax deduction to reduce your 2016 tax bill
A brief overview of the President-elect’s tax plan for individuals
Now that Donald Trump has been elected President of the United States and Republicans have retained control of both chambers of Congress, an overhaul of the U.S. tax code next year is likely. President-elect Trump’s tax reform plan, released earlier … Read More »
November 15th
Tax Department, Tax Planning. Comments Off on A brief overview of the President-elect’s tax plan for individuals
There’s still time to set up a retirement plan for 2016
Saving for retirement can be tough if you’re putting most of your money and time into operating a small business. However, many retirement plans aren’t difficult to set up and it’s important to start saving so you can enjoy a … Read More »
November 8th
Tax Department, Tax Planning. Comments Off on There’s still time to set up a retirement plan for 2016
It’s critical to be aware of the tax rules surrounding your NQDC plan
Nonqualified deferred compensation (NQDC) plans pay executives at some time in the future for services to be currently performed. They differ from qualified plans, such as 401(k)s, in that:
NQDC plans can favor certain highly compensated employees,
Although the executive’s tax liability … Read More »
November 1st
Tax Department, Tax Planning. Comments Off on It’s critical to be aware of the tax rules surrounding your NQDC plan
Beware of income-based limits on itemized deductions and personal exemptions
Many tax breaks are reduced or eliminated for higher-income taxpayers. Two of particular note are the itemized deduction reduction and the personal exemption phaseout.
Income thresholds
If your adjusted gross income (AGI) exceeds the applicable threshold, most of your itemized deductions will … Read More »
October 25th
Tax Department, Tax Planning. Comments Off on Beware of income-based limits on itemized deductions and personal exemptions
What the self-employed need to know about employment taxes
In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. … Read More »
October 18th
Tax Department, Tax Planning. Comments Off on What the self-employed need to know about employment taxes
Are you timing business income and expenses to your tax advantage?
Typically, it’s better to defer tax. One way is through controlling when your business recognizes income and incurs deductible expenses. Here are two timing strategies that can help businesses do this:
Defer income to next year. If your business uses the … Read More »
October 11th
Tax Department, Tax Planning. Comments Off on Are you timing business income and expenses to your tax advantage?
Tax-smart options for your old retirement plan when you change jobs
There’s a lot to think about when you change jobs, and it’s easy for a 401(k) or other employer-sponsored retirement plan to get lost in the shuffle. But to keep building tax-deferred savings, it’s important to make an informed decision … Read More »
October 4th
Tax Department, Tax Planning. Comments Off on Tax-smart options for your old retirement plan when you change jobs
Get 2 tax benefits from 1 donation: Give appreciated stock instead of cash
If you’re charitably inclined, making donations is probably one of your key year-end tax planning strategies. But if you typically give cash, you may want to consider another option that provides not just one but two tax benefits: Donating long-term … Read More »
September 27th
Tax Department, Tax Planning. Comments Off on Get 2 tax benefits from 1 donation: Give appreciated stock instead of cash
Prepaid tuition vs. college savings: Which type of 529 plan is better?
Section 529 plans provide a tax-advantaged way to help pay for college expenses. Here are just a few of the benefits:
Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred.
Some states offer tax incentives for contributing in the … Read More »
September 21st
Tax Department, Tax Planning. Comments Off on Prepaid tuition vs. college savings: Which type of 529 plan is better?
Documentation is the key to business expense deductions
If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions.
Case 1: Insufficient … Read More »
September 13th
Tax Department, Tax Planning. Comments Off on Documentation is the key to business expense deductions
Tax impact of investor vs. trader status
If you invest, whether you’re considered an investor or a trader can have a significant impact on your tax bill. Do you know the difference?
Investors
Most people who trade stocks are classified as investors for tax purposes. This means any net … Read More »
September 6th
Tax Department, Tax Planning. Comments Off on Tax impact of investor vs. trader status
Are frequent flyer miles ever taxable?
If you recently redeemed frequent flyer miles to treat the family to a fun summer vacation or to take your spouse on a romantic getaway, you might assume that there are no tax implications involved. And you’re probably right — … Read More »
August 30th
Tax Department, Tax Planning. Comments Off on Are frequent flyer miles ever taxable?
Now’s the time to start thinking about “bunching” — miscellaneous itemized deductions, that is
Many expenses that may qualify as miscellaneous itemized deductions are deductible only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this “floor.” … Read More »
August 23rd
Tax Department, Tax Planning. Comments Off on Now’s the time to start thinking about “bunching” — miscellaneous itemized deductions, that is
Combining business and vacation travel: What can you deduct?
If you go on a business trip within the United States and tack on some vacation days, you can deduct some of your expenses. But exactly what can you write off?
Transportation expenses
Transportation costs to and from the location of your … Read More »
August 16th
Tax Department, Tax Planning. Comments Off on Combining business and vacation travel: What can you deduct?
3 strategies for tax-smart giving
Giving away assets during your life will help reduce the size of your taxable estate, which is beneficial if you have a large estate that could be subject to estate taxes. For 2016, the lifetime gift and estate tax exemption … Read More »
August 9th
Tax Department, Tax Planning. Comments Off on 3 strategies for tax-smart giving
Don’t roll the dice with your taxes if you gamble this year
For anyone who takes a spin at roulette, cries out “Bingo!” or engages in other wagering activities, it’s important to be familiar with the applicable tax rules. Otherwise, you could be putting yourself at risk for interest or penalties — … Read More »
August 2nd
Tax Planning. Comments Off on Don’t roll the dice with your taxes if you gamble this year
Should you make a “charitable IRA rollover” in 2016?
Last year a break valued by many charitably inclined retirees was made permanent: the charitable IRA rollover. If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable … Read More »
July 26th
Tax Department, Tax Planning. Comments Off on Should you make a “charitable IRA rollover” in 2016?
To deduct business losses, you may have to prove “material participation”
You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any … Read More »
July 19th
Tax Department, Tax Planning. Comments Off on To deduct business losses, you may have to prove “material participation”
There’s still time for homeowners to save with green tax credits
The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). So, you still have time to save both energy and taxes … Read More »
July 12th
Tax Department, Tax Planning. Comments Off on There’s still time for homeowners to save with green tax credits
3 mutual fund tax hazards to watch out for
Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering … Read More »
July 5th
Tax Department, Tax Planning. Comments Off on 3 mutual fund tax hazards to watch out for
Awards of RSUs can provide tax deferral opportunity
Executives and other key employees are often compensated with more than just salary, fringe benefits and bonuses: They may also be awarded stock-based compensation, such as restricted stock or stock options. Another form that’s becoming more common is restricted stock … Read More »
June 30th
Tax Department, Tax Planning. Comments Off on Awards of RSUs can provide tax deferral opportunity
Throw a company picnic for employees this summer and enjoy larger deductions
Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses.
Deduction limits
Generally, … Read More »
June 21st
Tax Department, Tax Planning. Comments Off on Throw a company picnic for employees this summer and enjoy larger deductions
Finding the right tax-advantaged account to fund your health care expenses
With health care costs continuing to climb, tax-friendly ways to pay for these expenses are more attractive than ever. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) all provide opportunities for tax-advantaged funding of health … Read More »
June 14th
Tax Department, Tax Planning. Comments Off on Finding the right tax-advantaged account to fund your health care expenses
Combine business travel and a family vacation without losing tax benefits
Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you’re not careful, you could lose the tax benefits of … Read More »
June 7th
Tax Department, Tax Planning. Comments Off on Combine business travel and a family vacation without losing tax benefits
Employers: Take payroll tax withholding responsibilities seriously
Employers must withhold income and employment taxes (including Social Security) on wages paid to their employees. The taxes must then be paid over to the IRS according to a deposit schedule.
Some business owners and executives facing a cash flow crunch … Read More »
June 7th
Tax Department, Tax Planning. Comments Off on Employers: Take payroll tax withholding responsibilities seriously
Stock market volatility can cut tax on a Roth IRA conversion
This year’s stock market volatility can be unnerving, but if you have a traditional IRA, this volatility may provide a valuable opportunity: It can allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.
Traditional … Read More »
May 31st
Tax Department, Tax Planning. Comments Off on Stock market volatility can cut tax on a Roth IRA conversion
How many employees does your business have for ACA purposes?
It seems like a simple question: How many full-time workers does your business employ? But, when it comes to the Affordable Care Act (ACA), the answer can be complicated.
The number of workers you employ determines whether your organization is an … Read More »
May 24th
Tax Department, Tax Planning. Comments Off on How many employees does your business have for ACA purposes?
How summer day camp can save you taxes
Although the kids might still be in school for a few more weeks, summer day camp is rapidly approaching for many families. If yours is among them, did you know that sending your child to day camp might make you … Read More »
May 17th
Tax Department, Tax Planning. Comments Off on How summer day camp can save you taxes
Putting your home on the market? Understand the tax consequences of a sale
As the school year draws to a close and the days lengthen, you may be one of the many homeowners who are getting ready to put their home on the market. After all, in many locales, summer is the best … Read More »
May 10th
Tax Department, Tax Planning. Comments Off on Putting your home on the market? Understand the tax consequences of a sale
QSB stock offers 2 valuable tax benefits
By investing in qualified small business (QSB) stock, you can diversify your portfolio and enjoy two valuable tax benefits:
1. Tax-free gain rollovers. If within 60 days of selling QSB stock you buy other QSB stock with the proceeds, … Read More »
May 3rd
Tax Department, Tax Planning. Comments Off on QSB stock offers 2 valuable tax benefits
Unexpected retirement plan disqualification can trigger serious tax problems
It’s not unusual for the IRS to conduct audits of qualified employee benefit plans, including 401(k)s. Plan sponsors are expected to stay in compliance with numerous, frequently changing federal laws and regulations.
For example, have you identified all employees eligible for … Read More »
April 26th
Tax Department, Tax Planning. Comments Off on Unexpected retirement plan disqualification can trigger serious tax problems
Why it’s time to start tax planning for 2016
Now that the April 18 income tax filing deadline has passed, it may be tempting to set aside any thought of taxes until year end is approaching. But don’t succumb. For maximum tax savings, now is the time to start … Read More »
April 19th
Tax Department, Tax Planning. Comments Off on Why it’s time to start tax planning for 2016
What 2015 tax records can you toss once you’ve filed your return?
The short answer is: none. You need to hold on to all of your 2015 tax records for now. But this is a great time to take a look at your records for previous tax years and determine what you … Read More »
April 12th
Tax Department, Tax Planning. Comments Off on What 2015 tax records can you toss once you’ve filed your return?
Filing for an extension isn’t without perils
Yes, the federal income tax filing deadline is slightly later than usual this year—April 18—but it’s now nearly upon us. So, if you haven’t filed your return yet, you may be thinking about an extension.
Extension deadlines
Filing for an extension allows … Read More »
April 5th
Tax Department, Tax Planning. Comments Off on Filing for an extension isn’t without perils
Entrepreneurs: What can you deduct and when?
Starting a new business is an exciting time. But before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more.
Entrepreneurs are often … Read More »
March 29th
Tax Department, Tax Planning. Comments Off on Entrepreneurs: What can you deduct and when?
Tips for deducting losses from a disaster, fire or theft
If you suffer damage to your home or personal property, you may be able to deduct these “casualty” losses on your federal income tax return. A casualty is a sudden, unexpected or unusual event, such as a natural disaster (hurricane, … Read More »
March 22nd
Tax Department. Comments Off on Tips for deducting losses from a disaster, fire or theft
3 income-tax-smart gifting strategies
If your 2015 tax liability is higher than you’d hoped and you’re ready to transfer some assets to your loved ones, now may be the time to get started. Giving away assets will, of course, help reduce the size of … Read More »
March 15th
Tax Planning. Comments Off on 3 income-tax-smart gifting strategies
Make a 2015 contribution to an IRA before time runs out
Tax-advantaged retirement plans allow your money to grow tax-deferred—or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future years. So … Read More »
March 8th
Tax Planning. Comments Off on Make a 2015 contribution to an IRA before time runs out
2 benefits-related tax credits just for small businesses
Tax credits reduce tax liability dollar-for-dollar, making them particularly valuable. Two valuable credits are especially for small businesses that offer certain employee benefits. Can you claim one—or both—of them on your 2015 return?
Retirement plan credit
Small employers (generally those with 100 … Read More »
March 1st
Tax Planning. Comments Off on 2 benefits-related tax credits just for small businesses
What’s your charitable donation deduction?
When it comes to deducting charitable gifts, all donations are not created equal. As you file your 2015 return and plan your charitable giving for 2016, it’s important to keep in mind the available deduction:
Cash. This includes not just actual … Read More »
February 23rd
Tax Department, Tax Planning. Comments Off on What’s your charitable donation deduction?
How to max out education-related tax breaks
If there was a college student in your family last year, you may be eligible for some valuable tax breaks on your 2015 return. To max out your education-related breaks, you need to see which ones you’re eligible for and … Read More »
February 16th
Tax Department, Tax Planning. Comments Off on How to max out education-related tax breaks
Deduct home office expenses — if you’re eligible
Today it’s becoming more common to work from home. But just because you have a home office space doesn’t mean you can deduct expenses associated with it.
Eligibility requirements
If you’re an employee, your use of your home office must be for … Read More »
February 9th
Tax Department, Tax Planning. Comments Off on Deduct home office expenses — if you’re eligible
Extension means businesses can take bonus depreciation on their 2015 returns—but should they?
Bonus depreciation allows businesses to recover the costs of depreciable property more quickly by claiming additional first-year depreciation for qualified assets. The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) extended 50% bonus depreciation through 2017.
The break … Read More »
February 2nd
Tax Department, Tax Planning. Comments Off on Extension means businesses can take bonus depreciation on their 2015 returns—but should they?
File early to avoid tax identity theft
If you’re like many Americans, you may not start thinking about filing your tax return until the April 15 deadline (this year, April 18) is just a few weeks—or perhaps even just a few days—away. But there’s another date you … Read More »
January 26th
Tax Department, Tax Planning. Comments Off on File early to avoid tax identity theft
Why investing in small-business stock may make more tax sense than ever
By purchasing stock in certain small businesses, you can not only diversify your portfolio but also enjoy preferential tax treatment. And under a provision of the tax extenders act signed into law this past December (the PATH Act), such stock … Read More »
January 20th
Tax Department, Tax Planning. Comments Off on Why investing in small-business stock may make more tax sense than ever
Could you save more by deducting state and local sales taxes?
For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. This break can be valuable to those residing in states with no or low income taxes … Read More »
January 12th
Tax Department, Tax Planning. Comments Off on Could you save more by deducting state and local sales taxes?
2 extended credits can save businesses taxes on their 2015 returns
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks, in some cases making them permanent. Extended breaks include many tax credits — which are particularly valuable because they reduce taxes dollar-for-dollar (compared to … Read More »
January 5th
Tax Department, Tax Planning. Comments Off on 2 extended credits can save businesses taxes on their 2015 returns
No changes to retirement plan contributions for 2016
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, the limits remain unchanged for 2016:
Nevertheless, if you’re not already maxing out your contributions, you still have an opportunity to save more in 2016. And if you … Read More »
December 29th
Tax Department, Tax Planning. Comments Off on No changes to retirement plan contributions for 2016
Congress passes “extenders” legislation reviving expired tax breaks for 2015
Many valuable tax breaks expired December 31, 2014. For them to be available for 2015, Congress had to pass legislation extending them — which it now has done, with the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), … Read More »
December 22nd
Tax Department. Comments Off on Congress passes “extenders” legislation reviving expired tax breaks for 2015
Seven last-minute tax-saving tips
The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2015 tax liability—you just must act by December 31:
Pay your 2015 property tax bill that’s due in early 2016.
Make your January 1 … Read More »
December 15th
Tax Department, Tax Planning. Comments Off on Seven last-minute tax-saving tips
Avoid a 50% penalty: Take retirement plan RMDs by December 31
After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). You also could be required to take RMDs if you … Read More »
December 8th
Don’t miss your opportunity to make 2015 annual exclusion gifts
Recently, the IRS released the 2016 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in 2015). But even with the rising exemptions, annual exclusion … Read More »
December 1st
PTO contribution arrangements can help prevent the year-end vacation-time scramble
From the Thanksgiving kick-off of the holiday season through December 31, many businesses find themselves short-staffed as employees take time off to spend with family and friends. But if you limit how many vacation days employees can roll over to … Read More »
November 24th
Reduce taxes on your investments with these year-end strategies
While tax consequences should never drive investment decisions, it’s critical that they be considered — especially by higher-income taxpayers, who may be facing the 39.6% short-term capital gains rate, the 20% long-term capital gains rate and the 3.8% net investment … Read More »
November 18th
Protect your deduction: Verify that a charity is eligible to receive tax-deductible contributions before you donate
Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to … Read More »
November 11th
The 529 savings plan: A tax-smart way to fund college expenses
If you’re saving for college, consider a Section 529 plan. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. (Some states do offer tax incentives for contributing.)
Distributions used to pay qualified expenses (such as tuition, mandatory fees, … Read More »
November 4th
Save tax — or at least defer it — by carefully timing business income and expenses
The first step to smart timing is to project your business’s income and expenses for 2015 and 2016. With this information in hand, you can determine the best year-end timing strategy for your business.
If you expect to be in the … Read More »
October 27th
2 tax consequences to consider if you’re refinancing a home
Now may be a great time to refinance, because mortgage rates are still low but expected to increase. Before deciding to refinance, however, here are a couple of tax consequences to consider:
Cash-out refinancing. If you borrow more than you need … Read More »
October 21st
Your exec comp could be subject to the 0.9% additional Medicare tax or the 3.8% NIIT
The additional Medicare tax and net investment income tax (NIIT) apply when certain income exceeds the applicable threshold: $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for other taxpayers.
The following types of executive compensation could be … Read More »
October 13th
Gearing up for the ACA’s information reporting requirements
Starting in 2016, applicable large employers (ALEs) under the Affordable Care Act (ACA) will have to file Forms 1094-C and 1095-C to provide information to the IRS and plan participants regarding their health care benefits for the previous year. Both … Read More »
October 7th
Selling rather than trading in business vehicles can save tax
Although a vehicle’s value typically drops fairly rapidly, the tax rules limit the amount of annual depreciation that can be claimed on most cars and light trucks. Thus, when it’s time to replace a vehicle used in business, it’s not … Read More »
September 29th
Why you should contribute more to your 401(k) in 2015
Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, offers many benefits:
Contributions are pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the 3.8% … Read More »
September 23rd
Retirement Planning, Tax Department, Tax Planning. No Comments
How to determine if you need to worry about estate taxes
Here’s a simplified way to project your estate tax exposure. Take the value of your estate, net of any debts. Also subtract any assets that will pass to charity on your death.
Then, if you’re married and your spouse is a … Read More »
September 15th
When will Congress pass “extenders” legislation to revive expired tax breaks for 2015?
With Congress returning from its August recess, this is the question on tax-savvy Americans’ minds. Many valuable tax breaks aren’t permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the … Read More »
September 10th
All income investments aren’t alike when it comes to taxes
The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15% or 20%) rather … Read More »
September 3rd
Exporters and others: Save taxes with an IC-DISC
If your business exports American-made goods or performs architectural or engineering services for foreign construction projects, an interest-charge domestic international sales corporation (IC-DISC) can help slash your tax bill.
An IC-DISC is a “paper” corporation you set up to receive commissions … Read More »
August 25th
What you need to know before donating collectibles
If you’re a collector, donating from your collection instead of your bank account or investment portfolio can be tax-smart. When you donate appreciated property rather than selling it, you avoid the capital gains tax you would have incurred on a … Read More »
August 18th
Teens in your family with summer jobs? Set up IRAs for them!
Teenagers’ retirement may seem too far off to warrant saving now, but IRAs can be perfect for teens precisely because they’ll likely have many years to let their accounts grow tax-deferred or tax-free.
The 2015 contribution limit is the lesser of … Read More »
August 11th
Act soon if you want to help your child buy a home
Mortgage interest rates are still at historically low levels, but they’re expected to go up by year end. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are … Read More »
August 5th
Act soon if you want to help your child buy a home
Mortgage interest rates are still at historically low levels, but they’re expected to go up by year end. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are … Read More »
August 4th
Tread carefully when determining compensation for S corp. shareholder-employees
By distributing profits in the form of dividends rather than salary, an S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint … Read More »
July 31st
Tread carefully when determining compensation for S corp. shareholder-employees
By distributing profits in the form of dividends rather than salary, an S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint … Read More »
July 30th
Tax treatment of NQSOs differs from that of their better-known counterpart
With nonqualified stock options (NQSOs), if the stock appreciates beyond your exercise price, you can buy shares at a price below what they’re trading for. This is the same as for the perhaps better-known incentive stock options (ISOs).
The tax treatment … Read More »
July 21st
How to begin collecting your 2015 tax refund now
If you usually receive a large federal income tax refund, you’re essentially making an interest-free loan to the IRS. Rather than wait until you file your 2015 tax return in 2016, why not begin enjoying your “refund” now by reducing … Read More »
July 15th
Tax impact of the Supreme Court’s same-sex marriage decision
On June 26, the U.S. Supreme Court ruled that same-sex couples have a constitutional right to marry, making same-sex marriage legal in all 50 states. For federal tax purposes, same-sex married couples were already considered married, under the Court’s 2013 … Read More »
July 15th
Large employers: Time to start planning for ACA information reporting
With the U.S. Supreme Court’s June 25 decision upholding the Affordable Care Act (ACA) yet again, employers subject to the act’s information reporting provision can no longer afford to put off planning in the hope that the requirements might go … Read More »
July 15th
Opening the “back door” to a Roth IRA
A potential downside of tax-deferred saving through a traditional retirement plan is that you’ll have to pay taxes when you make withdrawals at retirement. Roth plans, on the other hand, allow tax-free distributions; the tradeoff is that contributions to these … Read More »
June 24th
Married with a large estate? Why you still need a credit shelter trust
Even though portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, this “easier” path isn’t necessarily the better path. For couples with large estates, making … Read More »
June 17th
FIRPTA amendments proposed to encourage foreign investment in U.S. real estate
Thomson Reuters Tax & Accounting News/Checkpoint Daily Newsstand
Two senior members of the U.S. House Ways & Means Committee, one Republican and one Democrat, have introduced amendments to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) that aim … Read More »
May 7th
Taking advantage of tangible property safe harbors
If your business has made repairs to tangible property, such as buildings, machinery, equipment and vehicles, you may be eligible for a deduction on your 2014 income tax return. But you must make sure they were truly “repairs,” and not … Read More »
March 12th
Make sure you have proper substantiation for your 2014 donations
If you don’t meet IRS substantiation requirements, your charitable deductions could be denied. To comply, generally you must obtain a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in … Read More »
February 25th
Should you forgo a personal exemption so your child can take the American Opportunity credit?
If you have a child in college, you may not qualify for the American Opportunity credit on your 2014 income tax return because your income is too high (modified adjusted gross income phaseout range of $80,000–$90,000; $160,000–$180,000 for joint filers), … Read More »
February 17th
The “manufacturers’ deduction”: It’s not just for manufacturers
The manufacturers’ deduction, also called the “Section 199” or “domestic production activities” deduction, is 9% of the lesser of qualified production activities income or taxable income. The deduction is also limited to 50% of W-2 wages paid by the taxpayer … Read More »
February 12th
Is your business ready for play-or-pay?
If you’re a “large” employer, time is running out to prepare for the Affordable Care Act’s (ACA’s) shared responsibility provision, commonly referred to as “play-or-pay.” It’s scheduled to go into effect in 2015.
Under transitional relief the IRS issued earlier this … Read More »
September 3rd
Vacation home owners: Adjusting rental vs. personal use might save taxes
With summer drawing to a close, if you own a vacation home that you both rent out and use personally, it’s a good time to review the potential tax consequences:
• If you rent it out for less than 15 days, you … Read More »
August 26th
Grandchild in college this fall? Paying tuition could save gift and estate taxes
Now’s the time of year when many young adults are about to head back to college — or to enter their first year of higher education. If you have a grandchild who’ll be in college this fall and you’re concerned … Read More »
August 19th
Installment sales offer both pluses and minuses
A taxable sale of a business might be structured as an installment sale if the buyer lacks sufficient cash or pays a contingent amount based on the business’s performance. An installment sale also may make sense if the seller wishes … Read More »
August 5th
Is a Roth IRA conversion right for you this year?
Is a Roth IRA conversion right for you this year?
If you have a traditional IRA, you might benefit from converting some or all of it to a Roth IRA. A conversion can allow you to turn tax-deferred future growth into … Read More »
July 30th
Give and receive with a charitable remainder trust
Would you like to benefit charity while reducing the size of your taxable estate yet maintain an income stream for yourself? Would you also like to divest yourself of highly appreciated assets and diversify your portfolio with minimal tax consequences? … Read More »
July 23rd
2 tax pitfalls of mutual funds
Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering … Read More »
July 16th
It’s not too late to make a 2013 contribution to an IRA
Tax-advantaged retirement plans allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future … Read More »
July 14th
Have you misclassified employees as independent contractors?
Have you misclassified employees as independent contractors?
An employer enjoys several advantages when it classifies a worker as an independent contractor rather than as an employee. For example, it isn’t required to pay payroll taxes, withhold taxes, pay benefits or comply … Read More »
July 10th
Why you need to know the value of your assets
With the gift and estate tax exemptions currently at $5.34 million, you might think that estate valuations are less important. But even if you believe that your estate’s value is under the exemption amount, it’s still important to know the … Read More »
July 2nd
If you’ve put your home on the market, you need to know the tax consequences of a sale
Summer is a common time to put a home on the market. If you’re among those who are following this trend, it’s important to be aware of the tax consequences.
If you’re selling your principal residence, you can exclude up to … Read More »
June 24th
Who’s subject to the 50% limit on meal and entertainment deductions?
n general, when meal and entertainment expenses are incurred in the context of an employer-employee or customer–independent contractor relationship, one party will be subject to a 50% limitation on the deduction. But which party? Last year, the IRS finalized regulations … Read More »
June 11th
What to do with your old retirement plan when you change jobs
First and foremost, don’t take a lump-sum distribution from your old employer’s retirement plan. It generally will be taxable and, if you’re under age 59½, subject to a 10% early-withdrawal penalty. Here are three alternatives:
1. Stay put. You may be … Read More »
June 3rd
Summer day camp may save you taxes
The passing of Memorial Day marks the beginning of summer in the minds of many Americans. Although the kids might still be in school for another week or two, summer day camp is rapidly approaching for many families. If yours … Read More »
June 2nd
3 tax traps when donating real estate to charity
If you’re considering donating a property to charity, here are three potential tax traps you need to be aware of:
1. If you donate real estate to a public charity, you generally can deduct the property’s fair market value. But if you … Read More »
May 22nd
Employers: Have you amended your FSA plan?
Health care Flexible Spending Accounts (FSAs) allow employees to redirect pretax income to an employer-sponsored plan that pays, or reimburses them for, qualified medical expenses not covered by insurance. A maximum employee contribution limit of $2,500 went into effect in … Read More »
May 14th
Don’t lose tax benefits when combining business travel with vacation pleasure
Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you’re not careful, you could lose the tax benefits of … Read More »
May 7th
Softening the blow of higher taxes on trust income
This year, trusts are subject to the 39.6% ordinary-income rate and the 20% capital gains rate to the extent their taxable income exceeds $12,150. And the 3.8% net investment income tax applies to undistributed net investment income to the extent … Read More »
May 1st
Your 2013 tax return is filed. What tax records can you toss?
The short answer is: none. You need to hold on to all of your 2013 tax records for now. But this is a great time to take a look at your records for previous tax years and determine what you … Read More »
April 23rd
Making the most of your business’s NOL
If during 2013 income tax return filing you found that your business had a net operating loss (NOL) for the year, the news isn’t all bad. While no one enjoys being unprofitable, an NOL does have an upside: tax benefits.
In … Read More »
April 16th
Don’t inadvertently miss filing deadlines
If you still file a paper return, it’s important to know the IRS’s “timely mailed = timely filed” rule: If your tax return is due April 15, it’s considered timely filed if it’s postmarked by midnight on April 15. But … Read More »
April 15th
Can I claim my elderly parent as a dependent?
For you to deduct up to $3,900 on your 2013 tax return under the adult-dependent exemption, in most cases the parent must have less gross income for the tax year than the exemption amount. Generally Social Security is excluded, but … Read More »
April 2nd
Your 2013 return may be your last chance for 2 depreciation-related breaks
If you purchased qualifying assets by Dec. 31, 2013, you may be able to take advantage of these depreciation-related breaks on your 2013 tax return:
1. Bonus depreciation. This additional first-year depreciation allowance is, generally, 50%. Among the assets that qualify … Read More »
March 18th
2013 higher education breaks may save your family taxes
Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses:
1. The American Opportunity credit — up to $2,500 per year per … Read More »
March 12th
Don’t overlook reinvested dividends
One of the most common mistakes investors make is forgetting to increase their basis in mutual funds to reflect reinvested dividends. Many mutual fund investors automatically reinvest dividends in additional shares of the fund. These reinvestments increase tax basis in … Read More »
March 10th
Could deducting state and local sales taxes save you more?
For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available … Read More »
February 26th
Short-term ACA relief now available for midsize and large employers
Recently released IRS final regulations for the Affordable Care Act’s (ACA’s) employer shared-responsibility provision provide some short-term relief for midsize and large employers.
Under the ACA, the shared-responsibility provision (commonly referred to as “play-or-pay”) applies to “large” employers — those … Read More »
February 19th
There’s still time to get substantiation for 2013 donations
To support a charitable deduction, you need to comply with IRS substantiation requirements. This generally includes obtaining a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in consideration for … Read More »
February 11th
Home office deduction 101
If your use of a home office is for your employer’s benefit or because you’re self employed, you may be able to deduct a portion of your mortgage interest, property taxes, insurance, utilities and certain other expenses, as well as … Read More »
February 5th
Time for an estate plan checkup
Now that we’re in the new year, it’s time for an estate plan checkup. Why? First, various exclusion, exemption and deduction amounts are adjusted for inflation and can change from year to year, so it’s a good idea to see … Read More »
January 14th
Should you increase your retirement plan contributions in 2014?
With the new year upon us, it’s time to start thinking about 2014 retirement plan contributions. Contributing the maximum you’re allowed to an employer-sponsored defined contribution plan is likely a smart move:
• Contributions are typically pretax.
• Plan assets can grow tax-deferred — … Read More »
January 6th
Avoid the year-end vacation-time scramble
Every December are your employees scrambling to use up their vacation time because of limits on what they can roll over to the new year? Or do you allow rollovers and have long-time employees who’ve built up large balances that … Read More »
December 23rd
Smart timing of business income and expenses can save tax — or at least defer it
By projecting your business’s income and expenses for 2013 and 2014, you can determine how to time them to save — or at least defer — tax. If you’ll be in the same or lower tax bracket in 2014, consider:
Deferring … Read More »
November 26th
Why you should max out your 2013 401(k) contribution
Contributing the maximum you’re allowed to an employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, is likely a smart move:
Contributions are typically pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce … Read More »
October 16th
Expiration date for home mortgage debt forgiveness rapidly approaching
Since 2007, homeowners have been allowed to exclude from their taxable income up to $2 million in cancellation-of-debt (COD) income ($1 million for married taxpayers filing separately) in connection with qualified principal residence indebtedness (QPRI). The exclusion had been available … Read More »
October 10th
IRS issues final regs on tangible property expenses
The regulations (IRS T.D. 9636) provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code. These sections require amounts paid to acquire, produce or improve tangible property to be capitalized but allow amounts for … Read More »
October 2nd
IRS makes more same-sex couples eligible for federal tax treatment as a married couple
In response to the U.S. Supreme Court’s June decision regarding same-sex marriage, the IRS recently clarified that married same-sex couples will be treated as married for all federal tax provisions in which marriage is a factor, such as filing status, … Read More »
September 11th
New IRS website provides health care law information for just about everyone
Many provisions of the Patient Protection and Affordable Care Act of 2010 have recently gone into effect, and some significant provisions will do so in 2014 and 2015. To help individuals and families, employers (both large and small), and other … Read More »
August 21st
Now’s the time to consider short-term GRATs
Congress’s decision not to include a proposed minimum term for grantor retained annuity trusts (GRATs) in the tax legislation passed back in January — combined with low interest rates — may make it an ideal time to add short-term GRATs … Read More »
August 13th
Don’t skimp on S corporation salaries
S corporation owners often take modest salaries as a tax-saving strategy. By distributing most of the corporation’s profits in the form of dividends rather than wages, the company and its owners can avoid payroll taxes on these amounts. The tax … Read More »
August 7th
Renting out your vacation home brings tax complications
If you rent out your vacation home for 15 days or more, you must report the income. But exactly what expenses you can deduct depends on whether the home is classified as a rental property for tax purposes, based on … Read More »
July 30th
Could your frequent flyer miles be taxable?
Now is the time of year when many Americans are using the frequent flyer miles they’ve built up from work-related travel or credit card rewards programs to take the family on a nice vacation. If you’re among them, you may … Read More »
July 23rd
Think twice before taking an early withdrawal from a retirement plan
If you’re in need of cash, early retirement plan withdrawals generally should be a last resort. With a few exceptions, distributions before age 59½ are subject to a 10% penalty on top of any income tax that ordinarily would be … Read More »
July 17th
Employers given another year to get into compliance with the health care act’s “play or pay” provision
The Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” was scheduled to take effect Jan. 1, 2014. But on July 2, the U.S. Treasury announced that the effective date would … Read More »
July 17th
How telecommuting can expose employers to unexpected taxes
If you allow employees to telecommute, be sure to consider the potential tax implications. Hiring someone in another state, for example, might create sufficient nexus to expose your company to that state’s income, sales and use, franchise, withholding, or unemployment … Read More »
June 25th
Work Opportunity credit for certain 2013 new hires can save you tax
If you’re considering expanding your staff, hiring from certain disadvantaged groups before the end of 2013 can save you tax. The American Taxpayer Relief Act of 2012 extended the Work Opportunity credit for hires from most eligible groups through 2013.
Examples … Read More »
May 29th
Planning to make a large cash gift for high school graduation? Consider paying some college tuition instead
With commencement ceremonies for high school seniors coming up, many parents and grandparents are contemplating making cash gifts the student can use for college expenses. But if gift and estate taxes are a concern, consider a potentially more tax-efficient gift: … Read More »
May 22nd
Why 2013 may be the year to make that car or boat purchase you’ve been thinking about
For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. The American Taxpayer Relief Act of 2012 has extended this break — … Read More »
May 15th
IRS Issues Guidance for Healthcare FSAs
Now that the 2012 tax return deadline is nearly upon us, if you haven’t filed your return yet, you may be thinking about an extension. This allows you to delay filing your return until the applicable extension deadline:
Individuals — Oct. … Read More »
January 2nd