Consider providing your beneficiaries with the power to remove a trustee
To ensure that a trust operates as intended, it’s critical to appoint a trustee that you can count on to carry out your wishes. But to avoid protracted court battles in the event the trustee isn’t doing a good job, consider giving the trust beneficiaries the right to remove and replace the trustee. What’s the […]
11 Exceptions to the 10% penalty tax on early IRA withdrawals
If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here’s what you need to know about the tax implications, including when the 10% […]
As year end approaches, small business owners should review their tax situations to determine ways to lower federal income taxes for the current tax year — and beyond. Fortunately, no significant unfavorable federal tax law changes that would affect 2023 or 2024 are expected. So, there’s more certainty regarding the tax rules today than this […]
“Improving a company’s sales is challenging. Consider value-based sales as an approach where sales reps function as business consultants, collaborating closely with customers to address specific needs or problems. The goal is to maximize the value in sales, defined as dollars gained, saved, risk reduced, or qualitative improvements. This method is labor-intensive, requiring extensive research, […]
“Many people own vacation homes in various scenic locations and consider renting them out part of the year. The tax implications can be intricate, depending on the rental duration and personal use. Personal use encompasses your vacations, as well as those of certain relatives and nonrelatives if market rent isn’t charged. However, if you rent […]
A refresher on the trust fund recovery penalty for business owners and executives
“The trust fund recovery penalty is not related to estate planning. It is enforced by the IRS to hold “responsible persons” accountable for deliberately withholding income and payroll taxes from employees’ wages without remitting them to the government. This penalty is 100% of the unpaid taxes, specifically the employees’ share. The IRS can designate anyone, […]
Are you considering moving to a new state to minimize estate tax?
“Although only a small percentage of families are subject to federal estate tax, it’s crucial to consider your state’s estate tax. While many states align their exemption amounts with the federal threshold, some have considerably lower exemptions. If you’re thinking of retiring in a state with no or lower state estate tax, keep in mind […]
Casualty loss tax deductions may help disaster victims in certain cases
“Discover the value of regular financial reporting beyond year-end statements. Depending on your company’s size and industry, consider monthly, quarterly, or midyear reports to spot trends and issues early. Keep in mind that internal accounting practices may create anomalies, but we’re here to help.”
Inflation is generally bad news. But a favorable side effect is bigger annual inflation adjustments to federal tax breaks. In fact, many federal tax parameters for the 2023 tax year are up about 7% over the amounts for 2022. Here are the details — plus inflation-adjusted estimates for the 2024 tax year to tide you […]
What are the pros and cons of custodial accounts for minors?
“Creating a tax-efficient investment account for your child’s future expenses, like college, is smart. Open a custodial account under UGMA or UTMA for simplicity. These accounts are owned by the child but managed by an adult until the child comes of age (usually 18 or 21). They offer a straightforward way to pass assets to […]
Plan now for year-end gifts with the gift tax annual exclusion
“The estate and gift tax exemption amount is scheduled to be cut drastically in 2026 when the related Tax Cuts and Jobs Act provisions expire (unless Congress acts to extend them). Making tax-free gifts before then can cut the size of your taxable estate and may be one way to address this potential threat.”
Could your business benefit from interim financial reporting?
“Discover the value of regular financial reporting beyond year-end statements. Depending on your company’s size and industry, consider monthly, quarterly, or midyear reports to spot trends and issues early. Keep in mind that internal accounting practices may create anomalies, but we’re here to help.”
