IS “BUNCHING” MEDICAL EXPENSES STILL FEASIBLE IN 2019?

By | October 14th, 2019|Accounting and Auditing, Retirement, Taxation|

Some medical expenses may be tax deductible, but only if you itemize deductions and you have enough expenses to exceed the applicable floor for deductibility.  With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) made bunching such expenses beneficial for some [...]

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STEP CAREFULLY WITH LOANS BETWIXT A BUSINESS AND ITS OWNER

By | October 7th, 2019|Accounting and Auditing, Business, Taxation|

It’s common for owners of closely held businesses to transfer money into and out of the company.  But it’s critical to make such transfers properly.  If you don’t, you might hear from the IRS. WHY LOANS ARE BETTER When an owner withdraws funds from the company, the transfer can be characterized as compensation, a distribution [...]

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TAX CALENDAR

By | October 1st, 2019|Accounting and Auditing, Business, Taxation|

October 15 Personal federal income tax returns for 2018 that received an automatic six-month extension must be filed today and any tax, interest and penalties due must be paid. The Financial Crimes Enforcement Network (FinCEN) Report 114, “Report of Foreign Bank and Financial Accounts” (FBAR), must be filed by today, if not filed already, for [...]

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4 TYPES OF INFORMATION YOU NEED TO PREPARE FOR DISASTER

By | September 30th, 2019|Accounting and Auditing, Business|

When you read the phrase “disaster prep,” you may envision bottled water and boarded-up windows.  But information is also a critical asset to have the following a natural or manmade catastrophe.  Here are four specific types of information you need: Personal identification records. These documents will enable you to prove the identity of your family [...]

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THE TAX COST OF DIVORCE HAS RISEN FOR MANY

By | September 9th, 2019|Accounting and Auditing, Estate planning|

Are you divorced or in the process of divorcing?  If so, it’s critical to understand how the Tax Cuts and Jobs Act (TCJA) has changed the tax treatment of alimony.  Unfortunately, for many couples, the news isn’t good – the tax cost of divorce has risen. WHAT’S CHANGED Under previous rules, a taxpayer who paid [...]

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PLANNING FOR THE NET INVESTMENT INCOME TAX

By | August 30th, 2019|Accounting and Auditing, Taxation|

Despite its name, the Tax Cuts and Jobs Act (TCJA) didn’t cut all types of taxes.  It left several taxes unchanged, including the 3.8% tax on net investment income (NII) of high-income taxpayers. You’re potentially liable for the NII tax if your modified adjusted gross income (MAGI) exceeds $200,000 ($250,000 for joint filers and qualifying [...]

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