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Qualified IRA Charitable Distributions Alternative to Taxable RMDs
Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. They're called Qualified IRA Charitable Distributions (QCDs). IRA distribution basics A popular way to transfer IRA assets [...]
Should Homeowners Prepay 2020 Property Taxes?
(This is Blog Post #677)
Last Chance to Cut Your 2019 Taxes
Don’t let the holiday rush keep you from taking some important steps to cut your 2019 taxes. You still have time to execute a few strategies, including: Buying Assets Thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy it and place it in service by [...]
Using Your 401k Plan to Save
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401k or Roth 401k plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. [...]
Year End Tax Saving Tools for Your Business
At this time of year, many business owners ask if there’s any year end tax saving tools they can implement. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or other [...]
Protecting Against International Trade Fraud
The U.S. economy depends on import and export markets to run as designed. After all, revenue from trade tariffs and duties contribute $30 billion annually to federal government coffers. Unfortunately, fraud regularly throws a wrench in the works of global trade, and individual businesses suffer. Your company might, for example, lose money if a seller [...]
How the Net Investment Income Tax Can Affect Your Estate Plan
The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates, but it left the 3.8% net investment income tax (NIIT) in place. It’s important to address the NIIT in your estate plan, because it can erode your earnings from interest, dividends, capital gains and other investments, leaving less for your heirs. Net Investment [...]
C to S Corporation Conversion
The right entity choice can make a difference in the tax bill you owe for your business. Although S corporations can provide substantial tax advantages over C corporations in some circumstances, there are plenty of potentially expensive tax problems that you should assess before making the decision to initiate a C to S corporation conversion. [...]
How to Have More Willpower
As posted to the FightMediocrity YouTube Channel on 6/30/15 (Run time: 4 min, 39 sec) In this thought provoking clip, FightMediocrity provides a quick review and recommendation of "The Willpower Instinct" by Kelly McGonigal. The book reports that 3 scientifically proven ways to have more willpower are: Get enough sleep Meditate Do important things first [...]
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 [...]
How You Can 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 [...]
Self-Directed IRA Pitfalls and Advantages
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 [...]
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 [...]
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 [...]
Understanding the FDIC Limit
(This is Blog Post #664)
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
