Articles & newsletters

November 1, 2019

Act now to save 2019 taxes on your investments

Do you have investments outside of tax-advantaged retirement plans? If so, you might still have time to reduce your 2019 tax bill by selling some investments ― you just need to carefully select which investments you sell. Balance gains and losses If you’ve sold investments at a gain this year, consider selling some losing investments to absorb the gains. This … Continue reading Act now to save 2019 taxes on your investments

Making gifts to loved ones? Don’t forget tax planning

Many people want to pass assets to the next generation during their lifetimes, whether to reduce the size of their taxable estates, to help family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that the type of assets you give can produce substantially different tax … Continue reading Making gifts to loved ones? Don’t forget tax planning

Business owners, your bad debts may be deductible

If you hold a business-related debt that’s become worthless or uncollectible, a “bad debt” deduction may allow you to cut your losses. But there are a few hoops to jump through. Business or nonbusiness? Business bad debts generate ordinary losses; nonbusiness bad debts are reported as short-term capital losses. The latter can be used only to offset capital … Continue reading Business owners, your bad debts may be deductible

Living the dream of early retirement

Many people dream of retiring early so they can pursue activities other than work, such as volunteering, traveling and pursuing their hobbies full-time. But making this dream a reality requires careful planning and diligent saving during the years leading up to the anticipated retirement date. It all starts with retirement savings accounts such as IRAs … Continue reading Living the dream of early retirement

October 2, 2019

Tax calendar – 4th Quarter

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 … Continue reading Tax calendar – 4th Quarter

October 1, 2019

Mortgage matters: To pay down or not to pay down

If you’re a homeowner and manage your finances well, you might have extra cash after you’ve paid your monthly bills. What should you do with this extra money? Some would say make additional mortgage payments toward your principal to pay off your mortgage early. Others would say: No, invest those dollars in the stock market! … Continue reading Mortgage matters: To pay down or not to pay down

Cost segregation studies can benefit business owners

Any business owner who’s acquired, constructed or substantially improved a building this year — or even in previous years — should read up on the tax benefits of a cost segregation study. Undertaking one may allow you to accelerate depreciation deductions, which reduce current taxes and boost cash flow. Real vs. tangible IRS rules generally … Continue reading Cost segregation studies can benefit business owners

Is “bunching” medical expenses still feasible in 2019?

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 … Continue reading Is “bunching” medical expenses still feasible in 2019?

Step carefully with loans betwixt a business and its owner

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 … Continue reading Step carefully with loans betwixt a business and its owner

September 6, 2019

The tax cost of divorce has risen for many

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 alimony was … Continue reading The tax cost of divorce has risen for many