10 Dec 2019
0

How to Fix a Broken Trust

Roger Rossmeisl, CPA
Estate Planning Briefs
How to Fix a Broken Trust

There are good reasons why estate planning advisors recommend you revisit and, if necessary, revise your estate plan periodically: changing circumstances, including family situations and new tax laws. While it’s relatively simple to change a beneficiary, what if an irrevocable trust no longer serves your purposes? Depending on applicable state law, you may have options for how to fix a broken trust. Reasons why a trust can break A trust that works just fine when it’s established may no longer achieve its original goals if your family circumstances change. If you divorce, for example, a trust for the benefit of your spouse may no longer be desirable. If your children grow up to be financially independent, they may prefer that you leave your wealth to their children....

10 Dec 2019
0

How You Can Help Stop Elder Financial Abuse

Roger Rossmeisl, CPA
Fraud Briefs
Help Stop Elder Financial Abuse

It’s one of the most difficult types of fraud to unearth. But it doesn’t directly affect businesses or the average consumer — in large part because its victims rarely report it. In fact, they’re often prevented from doing so by perpetrators.  What is it? Financial abuse of seniors, or elder fraud. Many thousands of Americans are victimized each year and some observers fear these crimes are becoming more widespread. But you can help stop elder financial abuse. Learn the signs and, as the saying goes, if you see something, say something. Vulnerable targets Older individuals with retirement savings, accumulated home equity and other significant assets make appealing targets for unscrupulous family members, caregivers, financial advisors, fiduciaries and scam artists who insinuate themselves into their victims’ lives. Seniors could...

10 Dec 2019
0

Self-Directed IRA Pitfalls and Advantages

Roger Rossmeisl, CPA
Estate Planning Briefs
Self-Directed IRA Pitfalls

Traditional and Roth IRAs can be powerful estate planning tools. With a “self-directed” IRA, you may be able to amp up the benefits of these tools by enabling them to hold nontraditional investments that offer potentially greater returns. However, there are self-directed IRA pitfalls that can lead to unfavorable tax consequences. Consequently, you need to handle these vehicles with care. Estate planning benefits IRAs are designed primarily as retirement-saving tools, but if you don’t need the funds for retirement, they can provide a tax-advantaged source of wealth for your family. For example, if you name your spouse as beneficiary, your spouse can roll the funds over into his or her own IRA after you die, enabling the funds to continue growing on a tax-deferred basis. If you name...

10 Dec 2019
0

3 Last Minute Tips That May Help Trim Your Tax Bill

Roger Rossmeisl, CPA
Individual Tax Briefs
3 Last Minute Tips that May Help Trim Your Tax Bill

If you’re starting to fret about your 2019 tax bill, there’s good news — you may still have time to trim your tax bill for 2019. Three strategies are available that may help you cut your taxes before year-end, including: 1. Accelerate deductions/defer income Certain tax deductions are claimed for the year of payment, such as the mortgage interest deduction. So, if you make your January 2020 payment this month, you can deduct the interest portion on your 2019 tax return (assuming you itemize). Pushing income into the new year also will reduce your taxable income. If you’re expecting a bonus at work, for example, and you don’t want the income this year, ask if your employer can hold off on paying it until January. If you’re self-employed,...

08 Dec 2019
0

Holiday Parties Provide Tax Breaks

Roger Rossmeisl, CPA
Small Business Tax Briefs
Holiday Parties Provide Tax Breaks

With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand the tax rules associated with these expenses. Holiday parties provide tax breaks.  Employee/client gifts may also be tax deductible by your business, but is the value taxable to the recipients? Customer and client gifts If you make gifts to customers and clients, the gifts are deductible up to $25 per recipient per year. For purposes of the $25 limit, you don’t need to include “incidental” costs that don’t substantially add to the gift’s value, such as engraving, gift wrapping, packaging or shipping. Also excluded from...

05 Dec 2019
0

Put the Brakes on Lapping Schemes

Roger Rossmeisl, CPA
Fraud Briefs
Put the Brakes on Lapping Schemes

Lapping is one of the most common ways crooked employees skim money from their employers. In these schemes, a perpetrator uses receipts from one account to cover theft from another. Here’s what it looks like and how you can put the brakes on lapping schemes. Starting small Lapping scams usually start small, with an employee pocketing a payment from ABC company and using a payment from XYZ company to hide the loss. As time goes on, however, the amounts get larger and the employee is forced to maintain detailed records to track the movement of money. This house of cards usually tumbles when the employee makes an error. One commonly cited example is the man who stole $150,000 by programming an elaborate computer scam based on 29-day cycles....

04 Dec 2019
0

Avoid the Wash Sale Rule When Selling Securities

Roger Rossmeisl, CPA
Individual Tax Briefs
Avoid the Wash Sale Rule When Selling Securities

If you’re planning to sell assets at a loss to offset gains that have been realized during the year, it’s important to be aware of, and avoid the wash sale rule. Avoid the wash sale rule: How the rule works Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities back within the 30-day period before or after the sale date, the loss can’t be claimed for tax purposes. The rule is designed to prevent taxpayers from using the tax benefit of a loss without parting with ownership in any significant way. Note that the rule applies to a 30-day period before or after the sale date to prevent “buying the stock back” before it’s even sold. (If...

03 Dec 2019
0

Cost Segregation Studies Accelerate Depreciation

Roger Rossmeisl, CPA
Small Business Tax Briefs
Accelerate Depreciation Deductions with a Cost Segregation Study

Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of cost segregation studies are now even greater than they were a few years ago due to enhancements to certain depreciation-related tax breaks. Depreciation basics Business buildings generally have a 39-year depreciation period (27.5 years for residential rental properties). Most times, you depreciate a building’s structural components, including walls, windows, HVAC systems, elevators, plumbing and wiring, along with the building. Personal property — such as equipment, machinery, furniture and fixtures — is eligible for...

02 Dec 2019
0

Importance of an Estate Plan

Roger Rossmeisl, CPA
Estate Planning Briefs
Importance of an Estate Plan

Despite what you might think, the importance of an estate plan isn’t limited to only the rich and famous. In fact, your family is likely to benefit from a comprehensive plan that divides your wealth, protects your well-being and provides a compass for your family’s future. Dividing your wealth Estate planning is often associated with the division of your assets, and this is certainly a key component. It’s typically accomplished, for the most part, by drafting a will, which is the foundation of an estate plan. With a valid will, you determine who gets what. It can cover everything from the securities in your portfolio to personal property, such as cars, artwork or other family heirlooms. In contrast, if you die without a will — referred to as dying...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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