Category: Blog

Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2019 expenses right now reduces your taxes this year, without question. While it’s true you kicked the can down the road some, perhaps you have an offset with a big deduction planned for next year. And even if you don’t have such a plan at the moment, you have plenty of time...

Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends.   Put Your Children on Your Payroll   Did your children under age 18 help you in your business this year? Did you pay them for their work?   You should pay them for the work—and pay them on a W-2.   Why? First, W-2 wages paid by the parent to the parent’s...

As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA).   You likely want your employees to be on a path of continuous improvement.   There’s much to know about how such business deductions work for both you and your employees. The Tax Cuts and Jobs Act (TCJA) tax reform may trigger a need for you to change your strategy to help your continuous...

Two questions:   Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year?   Here are some ideas for you to consider:   Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds   Let’s say that on or before December 31, 2018, you or your corporation buys and places in service a new or used SUV or crossover vehicle that the manufacturer classifies as a truck and that has a gross vehicle weight...

When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans. But year-end is approaching, and now’s the time to take action.   I’ve included below six action steps for 2018 that can help you reduce your taxes and pocket extra money.   Put your retirement plan in place no later than December 31 so you are absolutely sure that you have a plan. In fact, be sure to make a contribution to the plan before December 31. Convert to...

The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money.   Here’s the basic strategy:   Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains.   Think of this: you are paying taxes at a 71.4 percent higher rate when...

It’s time to examine your existing cars, SUVs, trucks, and vans for some profitable year-end business tax deductions.   Your first step is to identify your gain or loss on sale. Once you have the gain or loss, know these basic rules:   Gains attributable to depreciation produce ordinary income. Gains in excess of original basis produce capital gains. (This is unlikely to happen on most business vehicles, but it can happen with classic and antique business vehicles because they can go...

If you pay attention to financial news, you can’t escape hearing about Bitcoin and other cryptocurrencies. Bitcoin is just like country music, Justin Bieber, and pineapple on pizza — people either love it, or hate it, but there’s no middle ground. The billionaire Warren Buffet dismisses it as a “mirage,” a “Buck Rogers” phenomenon, and “rat poison squared.” But legions of fans see it someday replacing government-backed currencies. Odds are good that...

Take a look at our Internal Revenue Code. No, really, take a good look. (You can buy it on Amazon for just $161.89: two thick paperbacks totaling 4,968 pages. You even get free Prime shipping!) At first glance, it’s all about the revenue. For FY 2019, federal income taxes should hit nearly $1.7 trillion. Payroll taxes will top $1.2 trillion. Corporate taxes, $225 billion. And estate taxes will generate somewhere around $20 billion, depending on how many billionaires die (#dropinthebucket).   But...

Wall Streeters have a lot to give thanks for this holiday season. Earnings are up, so bonuses are up. And that, in turn, means taxes are up, too. The New York Post just reported that Wall Street Bankers Are Throwing Excessive Parties To Dodge Taxes. But will the wining and dining actually put money back in their pockets? Or is the tax angle just a convenient excuse to party up a storm on the company tab?   Wall Street culture rewards bankers for results. They generally start out with low...