Roger Rossmeisl, CPA, Author at Roger Rossmeisl, CPA

26 Jun 2019

Leaving Specific Assets to Specific Heirs

Estate Plans That Leave Specific Assets to Specific Heirs

Planning your estate around specific assets is risky and, in most cases, should be avoided. If you are leaving specific assets to specific heirs (such as homes, cars or stock), you may inadvertently disinherit them. Leaving specific assets to specific heirs: Illustrating the problem Let’s say Debbie has three children — Abbie, Mary Kate and Lizzie. Debbie wishes to treat them equally in her estate plan. In her will, Debbie leaves a $500,000 mutual fund to Abbie and her home valued at $500,000 to Mary Kate. She also names Lizzie as beneficiary of a $500,000 life insurance policy. Now consider this scenario when Debbie dies years later: the mutual fund balance has grown to $750,000, Debbie had sold the home for $750,000, invested the proceeds in the mutual...

22 Jun 2019

Tax Implications of Selling Your Home

Roger Rossmeisl, CPA

Individual Tax Briefs

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% during the week of May 2, 2019, while the 15-year mortgage rate was 3.6%. This is down 0.41 and 0.43%, respectively, from a year earlier. But before you contact a realtor, you should review the tax implications of selling your home. Sellers can exclude some gain If you’re selling your principal residence, and you meet certain requirements, you can exclude up to $250,000 ($500,000 for joint filers) of gain. Gain that qualifies for the exclusion is also excluded from the 3.8% net investment income tax. To qualify for...

22 Jun 2019

Formula Funding Clause in Older Estate Plans

Roger Rossmeisl, CPA

Estate Planning Briefs

The gift and estate tax exemption is higher than it’s ever been. You can thank the Tax Cuts and Jobs Act (TCJA) for that. TCJA temporarily doubled the exemption to an inflation-adjusted $10 million. $20 million for married couples who design their estate plans properly. This year, the exemption amount is $11.4 million ($22.8 million for married couples). Because of this, estate plans containing a formula funding clause (FFC) should be reviewed. If you’re married and you executed your estate planning documents years ago, when the exemption was substantially lower, review your plan to ensure that the increased exemption doesn’t trigger unintended results. It’s not unusual for older estate planning documents to include a FFC. FFCs split assets between a credit shelter trust and the surviving...

22 Jun 2019

Consider Checking Your Payroll Withholding

Roger Rossmeisl, CPA

Individual Tax Briefs

Consider Checking Your Payroll Withholding

Due to the massive changes in the Tax Cuts and Jobs Act (TCJA), the 2019 filing season resulted in surprises. Some filers who have gotten a refund in past years wound up owing money. The IRS reports that the number of refunds paid this year is down from last year — and the average refund is lower. As of May 10, 2019, the IRS paid out 101,590,000 refunds averaging $2,868. This compares with 102,582,000 refunds paid out in 2018 with an average amount of $2,940. Of course, receiving a tax refund shouldn’t necessarily be your goal. It essentially means you’re giving the government an interest-free loan. Law changes and withholding Last year, the IRS updated the withholding tables that indicate how much employers should hold back from their...

19 Jun 2019

Facebook’s New Crypto “Libra” Explained

Roger Rossmeisl, CPA

Current Events, Social Thoughts, Technology

As posted to the Ben Swann YouTube Channel on 6/18/19 Facebook's New Crypto "Libra" Explained Investigative journalist Ben Swann gives his take on how Facebook's new crypto "Libra" is not actually decentralized. Plus, it's been established with a "pay to play" scheme for governence of the coin. The players are Facebook, Uber, Lyft, Spotify Visa, Mastercard. and other multinationals who paid a $10 million entry fee. Decentralization Ben goes on to explain "the concept of decentralization. Cryptocurriency's power, is to break the current financial systems that are in effect, and returning that power to the people. Libra does not do that, it has no interest in doing that. It only continues to reinforce the power structures that are already in place." Why Facebook Won't Know What You're Spending Your Libra...

19 Jun 2019

How to Spot Influencer Fraud

Roger Rossmeisl, CPA

Fraud Briefs

To increase brand awareness and influence consumer behavior, businesses of all sizes spend vast amounts on social media marketing. Social media “influencers” can help companies reach and engage customers. But not all influencers operate above board. Here’s how to spot influencer fraud. And in so doing, avoid hiring or associating with a dishonest influencer. How to spot influencer fraud: The more, the better There’s no commonly accepted definition of how many followers an influencer must have to claim such status. But in general, the more, the better. After all, clients want access to as many eyes as possible. Knowing how important followers, likes and shares are, some influencers find it hard to resist the temptation to inflate their numbers. In general, they can command higher fees and attract...

19 Jun 2019

Hire Your Children This Summer

Roger Rossmeisl, CPA

Small Business Tax Briefs

If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other non-tax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed income, Realize payroll tax savings (depending on the child’s age and how your business is organized), and Enable retirement plan contributions for the children. Hire your children, but it must be a real job When you hire your child, you get a business tax deduction for employee wage expenses. In turn, the deduction reduces your federal income tax bill, your self-employment tax bill (if applicable), and your state income tax bill (if applicable). However, in...

19 Jun 2019

Make Health Care Decisions While You’re Healthy

Roger Rossmeisl, CPA

Estate Planning Briefs

Estate planning isn’t just about what happens to your assets after you die. It’s also about protecting yourself and your loved ones. This includes having a plan for making critical medical decisions in the event you’re unable to make them yourself. And, as with other aspects of your estate plan, the time to act is now, while you’re healthy. If an illness or injury renders you unconscious or otherwise incapacitated, it will be too late. Without a plan that expresses your wishes, your family may have to make health care decisions on your behalf or petition a court for a conservatorship. Either way, there’s no guarantee that these decisions will be made the way you would want, or by the person you would choose. Health Care Decisions:...

18 Jun 2019

Estate Planning for Single Parents

Roger Rossmeisl, CPA

Estate Planning Briefs

Here’s a fast fact: The percentage of U.S. children who live with an unmarried parent has jumped from 13% in 1968 to 32% in 2017, according to Pew Research Center’s most recent poll. While estate planning for single parents is similar to estate planning for families with two parents, when only one parent is involved, certain aspects demand your special attention. Estate planning for single parents: 5 questions to ask Of course, parents want to provide for their children’s care and financial needs after they’re gone. If you’re a single parent, here are five questions you should ask: 1. Have I selected an appropriate guardian? If the other parent is unavailable to take custody of your children should you become incapacitated or unexpectedly die, your estate plan must designate...

17 Jun 2019

Ordinary and Necessary Business Expenses

Roger Rossmeisl, CPA

Small Business Tax Briefs

Ordinary and Necessary Business Expenses

If you've read the Internal Revenue Code, you may be surprised to find that most business deductions aren’t specifically listed. It doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule is contained in the first sentence of §162. It states you can write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” Ordinary and necessary business expenses basic definitions In general, an expense is ordinary if it’s considered common or customary in the particular trade or business. For example, insurance premiums to protect a store would be an ordinary business expense in the retail industry. A necessary expense is defined as...

Leaving Specific Assets to Specific Heirs

Tax Implications of Selling Your Home

Formula Funding Clause in Older Estate Plans

Consider Checking Your Payroll Withholding

How to Spot Influencer Fraud

Hire Your Children This Summer

Make Health Care Decisions While You’re Healthy

Estate Planning for Single Parents

Ordinary and Necessary Business Expenses

ROGER ROSSMEISL, CPA

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