There’s still time to set up a retirement plan for 2016

Post Date: May 30, 2016

Saving for retirement can be tough if you’re putting most of your money and time into operating a small business. However, many retirement plans aren’t difficult to set up and it’s important to start saving so you can enjoy a comfortable future. So if...

It’s critical to be aware of the tax rules surrounding your NQDC plan

Post Date: May 30, 2016

Nonqualified deferred compensation (NQDC) plans pay executives at some time in the future for services to be currently performed. They differ from qualified plans, such as 401(k)s, in that: NQDC plans can favor certain highly compensated employees, Although the executive’s tax liability on the...

Beware of income-based limits on itemized deductions and personal exemptions

Post Date: May 30, 2016

Many tax breaks are reduced or eliminated for higher-income taxpayers. Two of particular note are the itemized deduction reduction and the personal exemption phaseout. Income thresholds If your adjusted gross income (AGI) exceeds the applicable threshold, most of your itemized deductions will be reduced...

What the self-employed need to know about employment taxes

Post Date: May 30, 2016

In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. All earned income is...

Are you timing business income and expenses to your tax advantage?

Post Date: May 30, 2016

Typically, it’s better to defer tax. One way is through controlling when your business recognizes income and incurs deductible expenses. Here are two timing strategies that can help businesses do this: Defer income to next year. If your business uses the cash method of...

Tax-smart options for your old retirement plan when you change jobs

Post Date: May 30, 2016

There’s a lot to think about when you change jobs, and it’s easy for a 401(k) or other employer-sponsored retirement plan to get lost in the shuffle. But to keep building tax-deferred savings, it’s important to make an informed decision about your old plan....

Get 2 tax benefits from 1 donation: Give appreciated stock instead of cash

Post Date: May 30, 2016

If you’re charitably inclined, making donations is probably one of your key year-end tax planning strategies. But if you typically give cash, you may want to consider another option that provides not just one but two tax benefits: Donating long-term appreciated stock. More tax...

Prepaid tuition vs. college savings: Which type of 529 plan is better?

Post Date: May 30, 2016

Section 529 plans provide a tax-advantaged way to help pay for college expenses. Here are just a few of the benefits: Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. Some states offer tax incentives for contributing in the form of...

Documentation is the key to business expense deductions

Post Date: May 30, 2016

If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions. Case 1: Insufficient records In the...

Tax impact of investor vs. trader status

Post Date: May 30, 2016

If you invest, whether you’re considered an investor or a trader can have a significant impact on your tax bill. Do you know the difference? Investors Most people who trade stocks are classified as investors for tax purposes. This means any net gains are...