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Tax Implications of Disability Income 850 500 smolinlupinco

Tax Implications of Disability Income

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…

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Understanding Taxes on Real Estate Gains 850 500 smolinlupinco

Understanding Taxes on Real Estate Gains

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.…

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Cash or Accrual Accounting: Which is Right for Your Business? 850 500 smolinlupinco

Cash or Accrual Accounting: Which is Right for Your Business?

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…

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Six Tax Issues to Consider During a Divorce 850 500 smolinlupinco

Six Tax Issues to Consider During a Divorce

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…

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Does a FAST Fit into Your Estate Plan? 850 500 smolinlupinco

Does a FAST Fit into Your Estate Plan?

Traditional estate planning often focuses on minimizing gift and estate taxes while protecting your assets from creditors or lawsuits. While these are important considerations, many people also hope to create a lasting legacy for their family. Dovetailing with the “technical” goals of your estate plan, such “aspirational” goals might include preparing your children or grandchildren…

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Tax Treatment of Business Website Expenses 850 500 smolinlupinco

Tax Treatment of Business Website Expenses

Most businesses today rely on websites, but despite their widespread use, the IRS hasn’t provided formal guidelines for deducting their costs. However, some guidance can be gleaned from existing tax laws that offer business taxpayers insights into the proper treatment of website cost deductions.  Tax implications of hardware versus software The hardware costs you might…

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Self-Directed IRAs: A Double-Edged Sword 850 500 smolinlupinco

Self-Directed IRAs: A Double-Edged Sword

Traditional and Roth IRAs are already powerful tools for estate planning, but a “self-directed” IRA can take their benefits to the next level. They can allow you to invest in alternative assets that might offer higher returns but they also come with their own set of risks that could lead to unfavorable tax consequences.  It’s…

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Maximize Your Estate Planning with the Roth 401(k) Contributions 850 500 smolinlupinco

Maximize Your Estate Planning with the Roth 401(k) Contributions

When deciding on contributions to your 401(k) plan, you might wonder whether it’s better to choose pre-tax (traditional) contributions or after-tax (Roth) contributions.  The best choice depends on your current and anticipated future tax circumstances, as well as estate planning goals. Traditional vs. Roth 401(k)s The main difference between a traditional and a Roth 401(k)…

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Tax Considerations When You Decide to Close a Business 850 500 smolinlupinco

Tax Considerations When You Decide to Close a Business

Shuttering your business is a significant milestone, often marked by a mix of relief and uncertainty. If you’ve opted to wind down operations on your business, it’s essential to tie up certain loose ends, especially tax-related ones.  Return filings Businesses must file specific federal income tax returns to finalize their situation. The type of return…

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Could Borrowing From Your Corporation Equal Lower Rates, Bigger Risks? 850 500 smolinlupinco

Could Borrowing From Your Corporation Equal Lower Rates, Bigger Risks?

Did you know that you can borrow funds from your own closely held corporation at rates much lower than those charged by a bank? This strategy can be advantageous in some aspects but careful planning is crucial to avoid certain risks.   The Basics Interest rates have risen sharply over the last couple of years, making…

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Maximize Giving and Minimize Taxes with the Power of Qualified Charitable Distributions 850 500 smolinlupinco

Maximize Giving and Minimize Taxes with the Power of Qualified Charitable Distributions

Are you a philanthropic person nearing or past retirement age and facing required minimum distributions (RMDs) from your traditional IRA? There is a smart strategy that allows you to support the causes you care about while reducing your tax burden: Qualified Charitable Distributions (QCDs). Here’s how it works: Once you reach age 70½, you can…

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Decoding Corporate Estimated Tax: Which Method is Best for You? 850 500 smolinlupinco

Decoding Corporate Estimated Tax: Which Method is Best for You?

With the next quarterly estimated tax payment deadline coming up on September 16, it’s the perfect time to brush up on the rules for computing your corporate federal estimated payments. Ideally, your business can pay the minimum amount of estimated tax without triggering any penalties for underpayment.  But how do you determine that amount? To…

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