Roger Rossmeisl, CPA, Author at Roger Rossmeisl, CPA

06 Aug 2018

(#368) “The Crash Course” Chapter 12: How Much is a Trillion?

As posted on the Peak Prosperity.com and the Chris Martenson's Peak Prosperity YouTube Channel Background The Crash Course has provided millions of viewers with the context for the massive changes now underway, as economic growth as we've known it is ending due to depleting resources. But it also offers real hope. Those individuals who take informed action today, while we still have time, can lower their exposure to these coming trends -- and even discover a better way of life in the process. In this Blog, I am presenting the 27 (inclusive of the introduction) installments of The Crash Course, one per week. Previous installments of "The Crash Course" can be found here: Blog (#311) Introducing "The Crash Course" Blog (#314) Chapter 1: Three Beliefs Blog (#319) Chapter 2: "The Three 'Es'" Blog...

30 Jul 2018

(#367) You Take Vacations . . . Fraud Doesn’t

Roger Rossmeisl, CPA

Infographics

30 Jul 2018

(#366) Why the “Kiddie Tax” is More Dangerous Than Ever

Roger Rossmeisl, CPA

Taxes

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 in 1986. Since then, this tax has gradually become more far-reaching. Now, under the Tax Cuts and Jobs Act (TCJA), the kiddie tax has become more dangerous than ever. A short history Years ago, the kiddie tax applied only to children under age 14 — which still provided families with ample opportunity to enjoy significant tax savings from income shifting. In 2006, the tax was expanded to children under age 18. And since 2008, the kiddie tax has generally applied to children under age 19 and to...

30 Jul 2018

(#365) Business Deductions for Meal, Vehicle and Travel Expenses: Document, Document, Document

Roger Rossmeisl, CPA

Taxes

Meal, vehicle and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS. A critical requirement Subject to various rules and limits, business meal (generally 50%), vehicle and travel expenses may be deductible, whether you pay for the expenses directly or reimburse employees for them. Deductibility depends on a variety of factors, but generally the expenses must be “ordinary and necessary” and directly related to the business. Proper documentation, however, is one of the most critical requirements. And all too often, when the IRS scrutinizes these deductions, taxpayers don’t have the necessary documentation. What you need to do Following some simple steps can help ensure you have documentation that will pass muster with the IRS: Keep receipts...

30 Jul 2018

(#364) 3 Traditional Mid-Year Tax Planning Strategies for Individuals that Hold Up Post-TCJA

Roger Rossmeisl, CPA

Taxes

With its many changes to individual tax rates, brackets and breaks, the Tax Cuts and Jobs Act (TCJA) means taxpayers need to revisit their tax planning strategies. Certain strategies that were once tried-and-true will no longer save or defer tax. But there are some that will hold up for many taxpayers. And they’ll be more effective if you begin implementing them this summer, rather than waiting until year end. Take a look at these three ideas, and contact us to discuss what midyear strategies make sense for you. Look at your bracket Under the TCJA, the top income tax rate is now 37% (down from 39.6%) for taxpayers with taxable income over $500,000 (single and head-of-household filers) or $600,000 (married couples filing jointly). These...

30 Jul 2018

(#363) “The Crash Course” Chapter 11: Inflation

Roger Rossmeisl, CPA

Economic Concepts

30 Jul 2018

(#362) Determining Which Meal and Entertainment Expenses Remain Deductible under TCJA (Part 2)

Roger Rossmeisl, CPA

Taxes

The Tax Cuts and Jobs Act (TCJA) ushered in significant changes to familiar business expenses . . . expenditures for meals and entertainment. This Tax Planning Letter, as well as Part 1 (#356), seeks to demonstrate that, while the deductibility of many entertainment expenses have been terminated after 2017, some do remain. A number of meal expenses also evade the clampdown. Part 2 covers: the rules for the deduction of employer-provided employee meals on company premises, and genres of expenses exempt from statutory restrictions on meals and entertainment See Part 1 (#356) for an overview of TCJA changes and a discussion of whether a so-called ''business meal'' (one in which a substantial and bona fide business discussion is present during the event) continues to be deductible...

23 Jul 2018

(#361) What’s in a Domain Name?

Roger Rossmeisl, CPA

Infographics

23 Jul 2018

(#360) Close-up on the New QBI Deduction’s Wage Limit

Roger Rossmeisl, CPA

Taxes

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to non-corporate 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 corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of QBI. But once taxable income exceeds $315,000 for married couples filing jointly or $157,500 for other filers, a wage limit begins to phase in. Full vs. partial phase-in When the wage limit is fully phased in, at $415,000 for joint filers and $207,500 for other filers, the QBI deduction generally can’t exceed the greater of the owner’s share of: 50% of the amount of W-2 wages paid to employees during the tax...

23 Jul 2018