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…
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…
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;…
As the end of 2019 approaches, more and more information and guidance is released by the IRS relating to the Tax Cuts and Jobs Act, as well as guidance relating to a number of different areas not impacted by the landmark tax reform act. While one of the claimed benefits of tax reform was the…
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…
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…
Deciding whether to switch to an S Corporation isn’t a straightforward decision. There are three main upsides to making the switch, and four main downsides to making the switch. First, you can reduce your taxes by eliminating self employment tax. When taxed as a proprietor or partnership, the IRS requires all of your wages to…
Many S-Corp owners don’t realize it but as small-business owners they have more options to save on healthcare costs than any other group of Americans. For example, in order to get the HSA deduction in 2018, you needed to have a high deductible health insurance plan in place by December 15, 2017. You should at…
The 2018 tax year will mark the first year subject to the changes in effect from the Tax Cuts and Jobs Act (TCJA). We have compiled a list of potential planning strategies that may benefit your business. We have placed a special emphasis on strategies connected to changes from the TCJA. We encourage you to…