With the third estimated tax payment behind us, it’s time for small businesses to focus on year-end tax planning.  Proactive steps now can help lower your taxes for this year and next. Common strategies include deferring income and accelerating deductions, or bunching deductible expenses to maximize their value.  However, if you expect to be in […]

High-income earners may face additional taxes: the 3.8% Net Investment Income Tax (NIIT) and a 0.9% additional Medicare tax on wages and self-employment income. Let’s explore the potential impact these taxes could have on you How the NIIT impacts high-income earners In addition to income tax, the NIIT applies to net investment income if your […]

Buying a business with co-owners or already sharing the reins? A buy-sell agreement isn’t just a smart move–it’s essential. It gives you a more flexible ownership stake, prevents unwanted changes in ownership, and avoids potential IRS complications.  The basics There are two main types of buy-sell agreements: cross-purchase and redemption agreements (also known as liquidation […]

Believe it or not, there are effective strategies to generate income and gains without triggering federal income tax. Here are some tips to keep your money in your pocket, tax-free: Roth IRAs  Roth IRAs are among the most powerful tools for generating tax-free income. Unlike traditional IRAs, qualified withdrawals from a Roth IRA are exempt […]

A 2019 change to tax law ended the “stretch IRAs” strategy for most inherited IRAs. This means that beneficiaries now have 10 years to withdraw all of the funds. Since then, there’s been a lot of confusion about required minimum distributions (RMDs). Thankfully, the IRS has now issued final regulations clarifying the “10-year rule” for […]

If you are one of the many Americans who rely on disability benefits, you might be wondering how that income is taxed. The short answer is it depends on the type of disability income you receive and your overall earnings. Taxable Disability Income The key factor is who paid for the benefit. When the income […]

If you own real estate held for over a year and sell it for a profit, you typically face capital gains tax. This applies even to indirect ownership passed through entities like LLCs, partnerships, or S corporations. You can expect to pay the standard 15% or 20% federal income tax rate for long-term capital gains. […]

Your business can choose between cash or accrual accounting for tax purposes. While the cash method can provide certain tax advantages to those that qualify, the accrual method might be a better fit for some businesses.  To maximize tax savings, you need to weigh both methods before deciding on one for your business.  Small business […]

Divorce is a complex legal process, both financially and emotionally. Taxes are likely the farthest thing from your mind. But, you need to keep in mind the tax implications and consider seeking professional assistance to minimize your tax bill and navigate the separation process more smoothly.  Here are six issues to keep top of mind […]