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…
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…
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…
Beware of Scams Surrounding Long-Term Care Coverage
Studies show a rising number of people will enter a long-term care facility at some point in their lives, often at a younger age than they expect. Many more will require the help of medical personnel in their homes. Either way, the costs range from expensive to insurmountable. That’s where long-term care (LTC) insurance becomes…
When Dollar-Cost Averaging Makes Sense … and Doesn’t
The benefits of dollar-cost averaging (DCA) are generally extolled by market commentators and investment providers. But this well-regarded strategy may not always be the best approach for individual investors.1 What is Dollar-Cost Averaging? Dollar-cost averaging is the practice of buying a fixed-dollar amount of a particular investment on a regular schedule over a period of time….
How to Make the Tax Code Work for You
By April 20, 2018, 138 million taxpayers had dutifully filed their federal income tax returns.¹ And all of them made decisions about deductions and credits — whether they knew it or not. When you take the time to learn more about how it works, you may be able to put the tax code to work…
IRS Offers QBI Deduction Safe-Harbor Rule for Rental Real Estate
The IRS recently issued guidance on the new deduction for up to 20% of qualified business income (QBI) from pass-through entities under the Tax Cuts and Jobs Act (TCJA). It aims to clarify when the QBI deduction is available for income from rental real estate enterprises. The QBI deduction is allowed only for income from…
DOs and DON’Ts to Help Avoid Collection Problems
Many companies run into problems with customers or clients not paying their bills on time — or not paying at all. The best way to avoid uncollectible bills depends on several factors — such as whether you sell products or services and the type of payment practices that are customary in your industry. For example, payment…