Blogging Beyond the Numbers

Planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA or SIMPLE-IRA).  In addition, it’s even more critical that you plan for the eventual withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the technical points of the IRA distribution rules can make a big difference in how much you and your family will...

When spouses are going through a divorce, tax implications may be the least important issue on their minds. But for a fair settlement and most favorable tax impact, people should address these tax considerations and speak with their tax advisor. Some of the common issues that should be addressed in the marital separation agreement include: Alimony and child support payments After the passage of ...

Unfortunately, the COVID-19 pandemic has forced many businesses to shut down permanently. Legally closing your business can require several steps to wrap up the company’s financial affairs and notify the government and tax authorities.  If this is your situation, we’re here to assist you in any way we can, including taking care of the various tax compliance obligations that must be met. Of cour...

If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling fund shares. Did you sell fund shares and not know it? You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way these surprise sales can happen is if your mutual fund allows you to write checks against your fund investment. Every time you write a...

October 15 was the extended due date for filing 2019 individual tax. If you didn't file by then… you’re late! For those that have filed, you might wonder: Which tax records can you toss once you’re done? Now is a good time to go through old tax records and see what you can discard. General Rule – 6-year retention period At minimum, you should keep tax records for as long as the IRS and state ...

Getting a letter from the IRS that your tax return is being audited may strike fear into the hearts of individuals and business owners. But with a little advance preparation and planning, you should fare well. In the fiscal year 2019, the IRS audited approximately 0.4% of individuals. Generally, self-employed businesses, flow-through businesses (LLC & S Corporations), large corporations, and high-in...

If you’re selling a business interest, real estate or other highly appreciated property, you could get hit with a substantial capital gains tax bill. One way to soften the blow — if you’re willing to tie up the funds long term — is to “roll over” the gain into a qualified opportunity fund (QOF). What is a QOF? A QOF is an investment fund, organized as a corporation or partnership, designe...

Questions often arise related to estate planning and gifting.  Fortunately, the current estate tax exemption amount for 2020 is $11.58 million, so many individuals no longer need to be concerned with federal estate tax.  This exemption amount is per person, so a married couple could potentially shield up to $23.16 million.  However, the current exemption amounts are scheduled to revert to pre-2018 level...

To provide businesses and their owners with some relief from the financial effects of the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act eases the rules for claiming certain tax losses. Here’s a look at the — mostly temporary — modifications. Liberalized rules for NOL carryforwards The CARES Act includes favorable changes to the rules for deducting net operating...

If a relative needs financial help, offering an intrafamily loan might seem like a good idea. But if not properly executed, such loans can carry negative tax consequences — such as unexpected taxable income, gift tax or both. Here are five tips to help avoid any unwelcome tax surprises: Create a paper trail In general, to avoid undesirable tax consequences, you need to be able to show that the loan...