Section 199A: Fund your retirement to qualify

What type of taxpayer are you? Do you meet with your tax advisor prior to the end of the year and strategize, or are you more “let the chips fall where they may”? This may be the year where tax planning and using a retirement plan could pay off when it comes to tax savings. …

Keep Reading

Section 199A: How do we plan for this?

We are always looking for bigger, better ways to save when it comes to paying taxes, right? Section 199A is proving it may be just that. BUT what exactly is Section 199A and how do we plan for it when there are still so many unanswered questions? Section 199A is also known as the Qualified …

Keep Reading

Does your partnership have a foreign partner?

If you have a foreign partner in your partnership, you may need to pay a withholding tax on that partner. A partnership that has income effectively connected with a U.S. trade or business is required to pay a withholding tax on the effectively connected taxable income that is allocable to its foreign partners. A foreign …

Keep Reading

Section 199A: Does a rental real estate business qualify?

One of the most substantial changes to the tax code included with the Tax Cuts and Jobs Act (TCJA) is the ability (potentially) to deduct 20% of qualified business income (QBI). This is referred to as the Section 199A deduction and goes into effect for 2018. Section 199A is generally reserved for pass through income …

Keep Reading

Estate and gift exemption increases to $11.4 million in 2019

The IRS announced in Revenue Procedure 2018-57 that the 2019 gift tax annual exclusion will remain at $15,000 and the estate and gift exemption amount will rise to $11,400,000 per person, or $22,800,000 per couple, in 2019. In 2019, you can gift up to $15,000 to another person using the annual gift exclusion and without …

Keep Reading

Protect your business: collusion and increased fraud losses

I recently read an article about fraud within the Massachusetts State Police (MSP). The author, a former MSP trooper, outlined an investigation by the U.S. Department of Justice (DOJ) and the Massachusetts Attorney General’s Office. The investigation involves a minimum of 46 troopers with the allegations including payroll fraud and conspiracy, among other federal violations. …

Keep Reading

Bookkeeping services: when to hire a bookkeeper

Bookkeeping is the foundation for any successful company or business. However, for many business owners, it does not mean this task is any less mundane, confusing or time consuming and often, it is placed on the back burner behind other top priorities. While you may be thinking to yourself, “Yes, exactly!” – and understandably so …

Keep Reading

Selling your car? Clear your personal data first

Is a new car on your wish list? Maybe you’re going to surprise a loved one with this huge gift. Car sales are big during the holidays and at year-end. But before you drive off the lot, don’t forget to wipe your old car of any personal data stored in the electronic system. Your car …

Keep Reading

Tax reform impact on the mortgage interest deduction

Prior to the Tax Cuts and Jobs Acts (TCJA), it was almost a given that owning a home was a great tax strategy thanks to the mortgage interest deduction and other tax benefits. After the passing of the TCJA, the decision to purchase a home requires more analysis. Several changes to the tax law indirectly …

Keep Reading

Roth IRA conversion: new tax law impact

Recently, I received a call from a client that is required to make minimum distributions (RMDs) from his traditional IRA. He wanted to know if he could satisfy his RMD requirement by converting an amount equal to the RMD to a Roth IRA. A Roth IRA conversion seems like a logical way of satisfying the …

Keep Reading