When a couple is drafting estate documents, the lawyer will setup provisions for how the estate is to be distributed upon the death of the first spouse. Many attorneys and clients will ask their tax accountant what their will should say. The only truthful answer is, “it depends what you want to happen.” The most…

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A 529 plan is tax benefit that is designed to promote saving for college.  Typically, a taxpayer will contribute to a 529 plan because it allows an individual to make significant contributions with money that grows tax- free. Money from a 529 plan can be used to pay for any college related expenses, including, but…

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New Tax Legislation

Last week, congress passed new tax legislation. Among the important provisions, some of the taxpayers effected by this legislation include: those who itemize for medical and dental expenses, or mortgage insurance premiums; have tuition & fees deductions; investors in empowerment zones; solar, business and non-business energy efficient property purchasers; employers providing Family and Medical Leave;…

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Stocking ideas, white elephant gifts, and presents for that one uncle whose name is hard to remember all have one thing in common, gift cards. But, before buying the catchall to last minute shopping, get all the facts about gift cards and their bottom line. Here is a great article from FDIC (Federal Deposit Insurance…

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It’s the end of another year, and with it come changes in payroll tax reporting and withholding rates. The following information will be effective for all payroll paid after December 31, 2019. Additionally, we are providing some reminders to help get through the 2019 annual reporting process. PAYROLL REMINDERS Remember to add health insurance for…

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As year-end approaches, each business should consider the many opportunities that might be lost if year-end tax planning is not explored. A business may want to consider several general strategies, such as use of traditional timing techniques for delaying income recognition and accelerating deductions. A business should also consider customized strategies tailored to its particular…

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Most employers who want to avoid the administration costs of a 401(k), deliberate between the traditional (or Roth IRA), SIMPLE plan, or a SEP IRA. The SEP IRA is usually appealing because it allows for contributions up to $56,000 annually. Compare this with the traditional IRA or Roth limits up to $6,000 – $7,000 a…

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