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(#535) Still Working After Age 70-1/2? You May Not Have to Begin 401(k) Withdrawals
If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required minimum withdrawals (RMDs) from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception that applies to certain plan participants who are still working for the entire [...]
(#534) 5 Ways to Prevent Fraud in Your Law Firm
Because they foster a collegial, trusting environment, law firms can be more vulnerable to fraud than many other types of businesses. Enforcing internal controls may simply seem unnecessary in an office of professionals dedicated to the law. Unfortunately, occupational thieves can take advantage of such complacency. A law firm’s accounting department — payroll and accounts [...]
(#533) Life Insurance Can Be a Powerful Estate Planning Tool for Non-Taxable Estates
For years, life insurance has played a critical role in estate planning, providing a source of liquidity to pay estate taxes and other expenses. Today, the gift and estate tax exemption has climbed to $11.4 million, so estate taxes are no longer a concern for the vast majority of families. But even for nontaxable estates, life [...]
(#532) USA’s Monsterous Debt Time Bomb Just Got Bigger
As posted to the GoldSilver YouTube Channel on 03/12/19 (transcript of documentary as appears on YouTube) Today (3/12/19) brings news of the latest federal budget proposal, a $4.75T presidential wishlist doomed to defeat in the House that spends money we don’t have. Perhaps most striking is that we are on pace to shatter the all-time debt-to-GDP [...]
(#531) Stretch Your College Student’s Spending Money With The Dependent Tax Credit
If you’re the parent of a child who is age 17 to 23, and you pay all (or most) of his or her expenses, you may be surprised to learn you’re not eligible for the child tax credit. But there’s a dependent tax credit that may be available to you. It’s not as valuable as [...]
(#530) How Fraud Can Scuttle the Purchase of Your Dream Home
Buying a home is stressful enough without also having to worry about potential fraud. Unfortunately, real estate fraud is surging. According to Realtor magazine, scams targeting the industry rose 1,100% from 2015 to 2017, resulting in losses of more than $1.6 billion. Home closing wire fraud should be of particular concern for prospective homebuyers. When [...]
(#529) Millennial Money: The Future of Our Economy
In this installment of Millennial Money, Robert Kiyosaki explains that, because the government has mismanaged our economy, millennials will have to be 10 times smarter than him to achieve the same result today that he achieved decades earlier. Being an Business Owner or Investor rather than being an Employee or Self-Employed is now more important [...]
(#528) Could Your Business Benefit from the Tax Credit for Family and Medical Leave?
The Tax Cuts and Jobs Act created a new federal tax credit for employers that provide qualified paid family and medical leave to their employees. It’s subject to numerous rules and restrictions and the credit is only available for two tax years — those beginning between January 1, 2018, and December 31, 2019. However, it [...]
(#527) Create a “Road Map” for your Estate Plan
No matter how much effort you’ve invested in designing your estate plan . . . your will, trusts and other official documents may not be enough. Consider creating a “road map” — an informal letter or other document that guides your family in understanding and executing your plan and ensuring that your wishes are carried [...]
(#526) The 2018 Gift Tax Return Deadline is Almost Here
Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required. Filing requirements Generally, you must file a gift tax return for 2018 [...]
(#525) There’s Still Time for Small Business Owners to Set Up a SEP Retirement Plan for Last Year
If you own a business and don’t have a tax-advantaged retirement plan, it’s not too late to establish one and reduce your 2018 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2018, and you can make contributions to it that you can deduct on your 2018 income tax return. Contribution [...]
(#524) Is Return Fraud Cutting Into Your Store’s Profits?
For brick-and-mortar retailers, return fraud can be a serious financial threat. There are several types of schemes. But when they’re successful, they all end the same way: Stores issue refunds that they shouldn’t have. Here’s what to look for and how to limit losses. Myriad schemes Return fraud perpetrators could be customers, employees or even [...]
(#523) Moving a Trust Over State Lines Can Offer Tax Savings and Other Benefits
People who live in states with high income taxes sometimes relocate to a state with a more favorable tax climate. A similar strategy can be available for trusts. If a trust is subject to high state income taxes, you may be able to change its residence — or “situs” — to a state with low [...]
(#522) Vehicle Expense Deduction Ins and Outs for Individual Taxpayers
It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through [...]
(#521) Prevent Fraud With The Help Of Your Audit Committee
Your board’s audit committee is a first line of defense against fraud. But to be effective, committee members need to do more than simply review financial statements and audit results. Members should also adopt the following best practices: Conduct risk assessments. Identify the types of risks faced by your company and their likelihood of occurrence. [...]
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.
