Social Security Benefits and Potential Tax on Benefits
Social Security has transformed many times since 1935 becoming more than just continuing income for the retired worker.
Property Acquired by Gift or Through an Estate
The recipient of a gift or a bequest pays no gift or estate tax. If taxes are due, they payable by the donor (the person making the gift) or the estate in the case of a decedent.
Long-Term Care Insurance—Is it for You?
Long-term care can be very expensive. Long-term care insurance can help preserve assets rather than using your wealth for your medical expenses.
Election to Expense Business Assets—Section 179 Depreciation
The Section 179 election makes it easier for small and medium-sized businesses to purchase new business equipment.
Tax Planning—Your Kids, Their Money
Dependent children may have to pay taxes too if their earned or unearned income exceeds a certain limit. Under certain circumstances, it can be reported on the parents’ return rather than their own.
Do Not Base Investment Decisions on Tax Laws
The adage tells us only death and taxes are certain, but we feel tax law changes are a certainty as well. Investment decisions made based solely on tax laws might not be the best decision.
A Gifting "Gotcha"—Gifting and Qualified Tuition Plans
You may be able to gift cash up to your annual exclusion amount, and you can pay someone’s tuition directly, but watch for the gift tax gotcha when contributing to a 529 Plan!
Don’t Be a Victim!
Identity thieves know you’re intimidated by the IRS, which is why they may try to use your tax refund as bait. Read all about it in this Tax Tip.
Simplified Employee Pensions Become More Attractive
Simplified Employee Pensions (SEPs) are a popular retirement plan for small businesses since they are easy to set up and administer. To set up a model SEP you complete Form 5305-SEP and retain it in the company’s files. A SEP-IRA account (similar to a Traditional IRA account) is opened for each participant at a selected financial institution.
Can I Switch from a UTMA to a 529 Plan?
Funds in a custodial account under the Uniform Transfer to Minors Act (UTMA) belong to the child, so there are some restrictions if you transfer funds to a 529 Plan.