Blog and News

Dec
30
2018

It’s not too late: You can still set up a retirement plan for 2018

If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return. And funds can grow tax deferred. If you have employees, they generally must be allowed to participate in the plan, provided they meet the requirements.

Dec
29
2018

Buy business assets before year end to reduce your 2018 tax liability

Investing in business assets is a traditional and powerful year-end tax planning strategy, and it might make even more sense in 2018. Sec. 179 expensing and bonus depreciation both allow an immediate deduction for the cost of eligible asset purchases, rather than depreciating them over a number of years. The TCJA increases potential deductions under these breaks and expands the assets that are eligible. To qualify, you must place assets in service by the end of the year.

Dec
28
2018

Distribution from retirement plan

When a taxpayer under age 59-1/2 takes a distribution from a qualified retirement plan, a 10% penalty is generally imposed. However, exceptions may apply. In one case, a taxpayer argued that her gambling addiction qualified her for an exception due to disability. The gambling addiction arose, she said, from an addiction to medication, which led to compulsive behavior and then to financial problems. A U.S. Tax Court rejected her claim, finding she hadn’t established that she qualified for a disability exception.

Dec
28
2018





Dec
27
2018

Nonprofit member surveys: Dos and don’ts for the 5 D’s

Many not-for-profits take the pulse of their membership with regular surveys but fail to conduct them strategically and end up with useless information. Maximize your next survey’s effectiveness by focusing on your objectives during every stage of the process. For example, start by defining what you want to learn so that you don’t ask members for information you can’t use. Design your survey with specific questions and explain to participants how you plan to use the results.

Dec
26
2018

2018 Affordable Care Act forms

Employers are granted an extension to furnish 2018 Affordable Care Act (ACA) forms to recipients. Health insurers and health plan sponsors must give all covered individuals an annual information statement summarizing their health care coverage. The deadline to furnish individuals with 2018 Form 1095-B and Form 1095-C is now extended, from 1/31/19 to 3/4/19. No extension is granted for filing forms with the IRS. This deadline remains 2/28/19, or 4/1/19 if filing electronically. Late filing may result in penalties.

Dec
25
2018

Check deductibility before making year-end charitable gifts

With tax law changes going into effect in 2018 and many rules applying to the charitable deduction, it’s a good idea to check deductibility before making year-end donations. First, total up your potential itemized deductions for the year, including the donations you’re considering. The total must exceed your standard deduction (which has been nearly doubled by the TCJA) for year-end donations to provide a tax benefit. Next, make sure the organization is qualified: http://bit.ly/2gFacut  Finally,

Dec
25
2018

Happy Holidays Picket Fence





Dec
24
2018

Meals

The IRS sheds light on meals provided for the convenience of an employer. An individual’s gross income generally includes compensation for services, including fringe benefits. An exception is the value of meals furnished by an employer, which are excludable if they’re furnished on the business premises for the employer’s convenience. The IRS Associate Chief Counsel issued Legal Advice 2018-004 stating that a previous test applied by the U.S. Supreme Court will continue to be relevant to determine whether there’s a business reason for furnishing meals to employees.

Dec
24
2018