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Year-End Planning for Investors

Regardless of future legislation, some tried and true strategies will help investors trim their tax bill in 2017. Year-end loss harvesting can be worthwhile. Example 1: Nick Rogers tallies his investment trades so far in 2017 and discovers he has realized $30,000 worth of net capital gains: his trading profits versus his trading losses. If those gains are all long-term (the assets were held more than one... Read More

Koskinsen Warns of Impending IRS IT System Failure

Current IRS Commissioner John Koskinen’s term is scheduled to end November 12, 2017. Speaking at the Urban-Brookings Tax Policy Center on October 31, Koskinen sent a strong warning to lawmakers of an impending IRS IT System failure. As the IRS’s available resources dwindle, “it’s not a question of whether, but when this system will fail,” he said. Koskinen noted the IRS is currently... Read More

Year-End Retirement Tax Planning

If your company sponsors a 401(k) plan, your employer may offer a match. Make certain that you’re contributing at least enough in 2017 to get the full match, which is essentially free money. The same is true when you’re setting up your 2018 contributions late this year. Example 1: Jill Myers earns $100,000 a year working for a company that offers a 50% match on 6% of pay. For Jill, 6% of pay is $6,000,... Read More

How to Reduce Your Liability & Turn Your Defined Contribution Plan Into An Asset

Often a business owner will start a defined benefit plan to both retain and attract quality employees to their company. Over time, and without some expert guidance, these plans can turn into more of a burden, especially if a company experiences significant growth or is in a high turnover industry. When speaking with plan sponsors, the three questions that come up most often are: • How can I reduce... Read More

Disaster Relief Bill Signed into Law

President Trump on September 29 signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (HR 3823). Congress approved the bill the day before. In a Statement of Administration Policy, the White House had explained that HR 3823 would “provide targeted tax relief for taxpayers impacted by Hurricanes Harvey, Irma and Maria. In addition to supporting these tax relief measures, the... Read More

New IRS Ruling May Rescue Estate Plans

President Trump’s campaign promise to abolish the federal estate tax may or may not be realized. Meanwhile, the “death tax” still exists, and it continues to be a major concern for high net-worth taxpayers, including the owners of successful small companies. If a deceased taxpayer has a surviving spouse, the estate of the deceased spouse may make a portability election. If this election is made, the... Read More

October/November Dates to Remember

October 16 Individuals. If you have an automatic six-month extension to file your income tax return for 2016, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, or penalties due. Corporations. File a 2016 calendar-year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic six-month extension. Employers. For Social... Read More

Prepare Your Kids for Financial Independence

An AICPA survey discovered that parents are more likely to talk with their children about manners, eating habits, school grades, and substance abuse than about finances. All these topics are important, but it’s also vital to teach your kids the basics of handling money. This conversation can begin when children are very young—even before they start kindergarten. One tactic is to give each child a piggy... Read More

How to Get 100% Reimbursed for Employee Meal Expenses

Many business owners, self-employed individuals, and other taxpayers are aware that business meals and entertainment expenses are only 50% deductible. You might treat a key client to a restaurant meal and spend $100. Even if this meal has a definite business purpose (you wind up with an important contract), only $50 will be tax deductible. Nevertheless, some business meals can be fully deductible. The Tax... Read More