Will States Conform to the New Tax Rules?
Many state legislatures are now in session. A major issue that state lawmakers may currently face is whether to conform their state income tax systems to all the changes included in the Tax Cuts and Jobs Act (TCJA). Some states are considering or have adopted legislation to address the following key provisions of the new…
9 Ways to Keep Your Benefit Plans Healthy
It takes time to regularly review your benefits, but the payoff can be big. Most important, periodic checkups help your company remain compliant. But a recurrent review might also uncover ways to reduce costs without eliminating benefits. Here are nine measures you can and should take to keep your benefit plans healthy: 1. Put a…
Measuring the Value of a Financial Advisor
What’s the value of a financial advisor? Two studies found that working with a financial professional can result in higher returns and potentially lower personal stress.1,3 Lower Stress Seventy-six percent of people within 15 years of retirement are stressed when thinking about retirement savings and investments.2 Working with a financial advisor to develop a written…
Entities that Do Not Qualify for 501(c)(3) Status
Organizations that are created to provide goods or services exclusively (or primarily) to Section 501(c)(3) organizations (or governmental entities) may think that this purpose is sufficient to also qualify them under tax law. However, providing commercial type services exclusively to exempt organizations is not by itself an exempt purpose. Much more is required for qualification…
New Tax Benefits of Hiring Your Kid
Summer jobs can be an effective way to teach children about financial responsibility, encourage them to save for college or retirement, and provide them with spending money during the school year. If you own a business, consider hiring your child (or grandchild) as a legitimate employee. It can be a smart tax-saving strategy for employee and…
Rx for Itemizing Medical Expenses
Medical expenses can be costly — and they’re not always covered by insurance. But there may be a silver lining: You may be able to claim an itemized deduction for the amounts you pay for medical, dental and vision care, if you incur enough costs to exceed the applicable threshold for the tax year. Here are…
You May Want to Separate Real Estate Assets from Your Business
Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as…
Plan Now to Reduce AMT Exposure
First the bad news: Despite passage of the Tax Cuts and Jobs Act (TCJA), the individual alternative minimum tax (AMT) is still in place. But there’s some good news: The law has made AMT rules more taxpayer-friendly for 2018 through 2025. In addition, other TCJA changes reduce the odds that you’ll owe the AMT for those…
The Concept of Asset Allocation
If you live in or have visited a big city, you’ve probably run into street vendors — people who sell everything from hot dogs to umbrellas in carts on the streets and sidewalks. Many of these entrepreneurs sell completely unrelated products, such as coffee and ice cream. At first glance, this approach seems a bit odd,…
Know the Rules Before Checking Employee Medical Records
When employees request time off under the Family and Medical Leave Act (FMLA), employers need to tread carefully. The FMLA can be a minefield in several ways, including how to document eligibility for leave. In the simple words of the Department of Labor, employees would qualify for time off under the act if a serious…