Dirty DozenTax Scams to Watch For
Every year, the Internal Revenue Service releases its list of tax scams, spotlighting the myriad ways that people try to separate you from your money.1 The 2018 “Dirty Dozen” Identity Theft Using your personal information, an identity thief can file a fraudulent tax return and claim for a refund. If you’ve been a victim of…
What Is Your Investment IQ?
Investing in the financial markets is now part of everyday life. Yet, many Americans remain in the dark about investment products and how they work. Interested in testing your knowledge? When a company goes bankrupt, who gets paid first?¹,² Preferred stockholders Bond owners Secured creditors Suppliers and contractors Which of the below is one difference…
Age 50 or Older? Consider Extra Retirement Contributions
2019 Contribution Limits Traditional and Roth IRAs $6,000 (up from $5,500 in 2018) 401(k), SARSEP, 403(b) Plan Deferrals & 457 Plan deferrals $19,000(up from $18,500 from 2018) SIMPLE deferrals $13,000 (up from $12,500 in 2018) Here’s an important reminder for those who want to max out before-tax contributions to employer-sponsored salary retirement plans, which…
Is it Time to Rebid Your Vendor Contracts?
While it’s great to have a good rapport with your vendors, it’s important to ensure the relationship remains businesslike. Vendors who know there is a threat that they could lose your contract are more likely to focus on staying competitive. And when the vendor is, for example, a retirement plan third-party administrator or recordkeeper, you’ve…
Getting Employees Back in the Loop
Employees returning to their jobs after a long absence can face a series of challenges that require good management. The Problem During a temporary transfer, maternity leave or sabbatical, employees lose touch with changes in the office and in fellow employees’ lives. New relationships and work dynamics have been formed. The successful manager needs to…
SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you’re eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here’s a series of side-by-side comparisons to help you decide. Eligibility Requirements SIMPLE…
Sell (or Buy) a Corporate Business With a Tax-Free Reorganization
There are two basic ways to sell an incorporated business — sell the assets or sell the stock. For two good tax reasons, sellers usually prefer stock sales: Assuming you’ve owned the shares for more than a year, your profits will generally be taxed at a maximum federal rate of 20%. This applies equally to…
Write Strong, Binding International Business Contracts
Is your business entering into a contract with a foreign entity? If so, you should be aware of certain legal terms that may be included — or are necessary to have — in the contract. These terms are important so you will not have difficulty pursuing or defending against potential claims with foreign entities. Contracts…
Handling Law Firm Start-Up Expenses For Tax Purposes
If you are starting a new law firm, you may incur several different types of “pre-opening expenses.” By pre-opening expenses, we mean those that are incurred during the period before the new firm is actually up and running and earning revenue. Special federal income tax rules apply to such pre-opening costs. This article summarizes how…
Think You Don’t Need a Written Contract? Think Again
You’ve probably heard the old saying, “a verbal contract isn’t worth the paper it’s written on.” Yet many business owners and executives still enter into handshake deals. For example, consider the case of a successful Irish pub with a 10-year lease. The property had a great location with lots of foot traffic and a loyal…