Take intrafamily lending to the next level by establishing a family bank
Posted August 29, 2019 / No comments
One of the primary goals of estate planning is to put in writing how you want your wealth distributed to loved ones after your death. But what if you’d like to use that wealth to help a family member in need while you’re still alive? One way to do so is through intrafamily lending. If
Read MoreExpenses that teachers can and can’t deduct on their tax returns
Posted August 28, 2019 / No comments
As teachers head back for a new school year, they often pay for various expenses for which they don’t receive reimbursement. Fortunately, they may be able to deduct them on their tax returns. However, there are limits on this special deduction, and some expenses can’t be written off. For 2019, qualifying educators can deduct some
Read MoreThe untouchables: Getting a handle on intangibles
Posted August 27, 2019 / No comments
The average company’s balance sheet understates its value by 80%, according to Sarah Tomolonius, co-founder of the Sustainability Investment Leadership Council. Why? Intangible assets aren’t recorded on the balance sheet under U.S. Generally Accepted Accounting Principles (GAAP), unless they’re acquired from a third party. Instead, GAAP generally calls for the costs associated with creating and
Read MoreThe tax implications of a company car
Posted August 26, 2019 / No comments
The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This benefit results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefits of driving the cars!) Even better, recent
Read MoreExpanded 529 plans offer unique estate planning benefits
Posted August 25, 2019 / No comments
If you’re putting aside money for college or other educational expenses, consider a tax-advantaged 529 savings plan. Also known as “college savings plans,” 529 plans were expanded by the Tax Cuts and Jobs Act (TCJA) to cover elementary and secondary school expenses as well. And while these plans are best known as an educational funding
Read MoreWhat to expect during a franchise audit
Posted August 24, 2019 / No comments
It’s important for franchisors to periodically audit individual franchisees. These routine “check-ups” are especially valuable in a store’s early years of operations or if performance starts to deteriorate. They can be used to detect symptoms of unhealthy performance and treat problems before they spiral out of control. Focus on royalty payments Royalties are a franchisor’s
Read MoreTaking distributions from your traditional IRA
Posted August 22, 2019 / No comments
If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (including a SEP-IRA). It’s even more critical to carefully plan for withdrawals from these retirement-savings vehicles. Knowing the fine points of the IRA distribution rules can make a significant difference in how much you and your family
Read MoreShould you elect S corporation status?
Posted August 20, 2019 / No comments
Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. But
Read MorePrevent human errors with safety coaching
Posted August 17, 2019 / No comments
Workplace accidents are often caused by human error, not faulty equipment. Typically, if an employee has an unsafe attitude, his or her job performance will become careless and a mishap (large or small) will soon follow. “Unsafe” doesn’t necessarily mean “on purpose,” and “attitude” doesn’t necessarily mean “insubordinate.” Some workers are physically exhausted or stressed;
Read MoreA poorly worded apportionment clause can upend an estate plan
Posted August 15, 2019 / No comments
Federal estate tax liability is no longer an issue for many families, now that the gift and estate tax exemption stands at $11.4 million for 2019. But there are still affluent individuals whose estates may be subject to hefty estate tax bills. If you expect your estate to have significant estate tax liability at your
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