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Tax Reform & Retirement Planning
Should My Retirement Planning Change After Tax Reform? As the Internal Revenue Service continues to forge ahead in writing regulations and opinions to help clarify the many gray areas in the largest tax reform in over 30 years, we as professionals also continue to research and explore areas in the revisions to help our clients save money, both now and down the road. As most of us are aware, there are a number of different products available to fund retirement for employees, employers, and business owners. In order to determine what is the best product and method, not only do
Can Bad Bookkeeping Cost You Money?
Does it really matter how perfect my accounting records are if I am only a small business? When most small business owners think of bookkeeping and accounting, they think of it as a necessary evil and often fail to focus on making sure the records are clear and supported. Many new small businesses often have cash flow needs that are sometimes not met by sales and require inflows from other sources such as loans. Also, those same small businesses often co mingle personal expenses in with business accounts. Although some do not feel these items are a big issue so
State Income Taxes after the Wayfair
What Does the Wayfair Decision Mean for Income Taxes? Sales and use tax e-commerce considerations receive the bulk of attention from state lawmakers, perhaps because they are less difficult to conceptualize. The corporate income tax concerns raised by these transactions are just as pressing, if not more so, given the potential liabilities at stake. There are two primary issues. First, does selling purely electronic products and services to customers in a state establish nexus (a sufficient connection to warrant imposition of tax) for an out-of-state company lacking any other contacts with the state? Second, if an out-of-state company does have
Did Tax Reform Make the Kiddie Tax Worse?
How Tax Reform's kiddie tax may effect YOU In today's day and age we all strive to make sure our children are better off then we were. To that end, we often see children with investment accounts which, in the past, also sometimes provided a way to shelter some income at lower tax brackets. The last great tax reform, 1986, addressed this issue and brought us the kiddie tax. Under these rules, children are taxed at their normal applicable rates on their earned income, and on their investment income up to a prescribed amount. Under the prior law, children who
Corporate Debt, Is the ‘S’ Corporation Best?
Tax Planning with Corporate Structures and the New Tax Laws As we look at tax Reform and the numerous challenges it presents to even the smart tax planner, one of the most asked question by business owners is "What type of entity should I be?". With the addition of the new 20% deduction available to most businesses, many tax preparers simply look at benefits of 'S' versus 'C' as more of a math problem to solve. What is the tax impacts of that second layer of taxation (even though the rate is much lower) versus the pass-though higher rates and
The Power of Time Value of Money and Your Child’s Summer Job
Tax Planning for Your Children with the Help of Time Value of Money Tax planning and investment advice are (or should be) closely tied together. Looking at one while ignoring the other can greatly alter actual results from your expectations. Although we at RPB are not an investment advisory firm, we as tax planners work hand-in-hand with many advisory firms. The smart investor knows that the one thing that is never changing is time, and with proper planning, time can be an investor's greatest asset instead of their worst nightmare. Investing early can mean the difference between retiring when
Tax Reform….As the Dust Begins to Settle
Highlights and New Items on Tax Reform Its officially been two months since the passing of the biggest tax reform since 1986 and understandably there have been comments from all perspectives on what it will mean to everyone. Although many of the items in the actual bill still need much clarification from the Internal Revenue Service on how they will interpret them, most people have a good overall idea of how this reform will most likely affect them. Or do they? As with any tax laws, there are usually winners and losers (unfortunately at some point tax needs to be
Did You Remember to File ALL Your Tax Forms?
Are You Filing ALL the Tax Forms You Need To? As many individuals and businesses prepare to file their 2017 income tax returns, the question many people forget to ask is “what am I missing?” Now when many people hear that question in the context of taxes, they think what deductions or credits am I missing. Although this is indeed a great question, and one your CPA should be asking you all year long, this is not the only things that we need to worry about missing in today’s tax world. As the IRS and many state governments continue to
Divorce and Taxes: Two Words People Like To Avoid
Income tax may be the last thing on your mind after a divorce or separation. However, these events can have a significant impact on your taxes. Alimony and a name change are just a few items you may need to consider. Here are some key tax tips to keep in mind if you get divorced or separated. Tax Law Considerations Child Support and Alimony. If you pay child support, you can’t deduct it on your tax return. If you receive child support, the amount you receive is not taxable. If you make payments under a divorce or separate maintenance decree
Changing Business Structure After Tax Reform
What Type of Entity Should My Company Be? That question has always been one on the minds of all business owners in order to not only best meet regulatory needs but also to take advantage of the tax code. With the Tax Reform now behind us and regulations to understand those changes in the works at the IRS, we once again have to reevaluate those decisions from a tax standpoint. The new law gives many businesses some new tax breaks and benefits, and makes some sweeping changes to the tax rates for both businesses and individuals. However, the underlying rules
