Advisory & Consulting

Advisory & Consulting

August 10, 2016 Accounting, Advisory & Consulting, Business, Compliance

Have Fewer Than 50 Employees? Here is How the Health Care Act Affects You

Category: For Business, Health Care ReformTags: Insurance, Medical Article Highlights: Under the 50-Employee Threshold  Determining the 50-Employee Threshold  Full-Time Employee  Equivalent Full-Time Employees  Information Return Requirements  SHOP Marketplace  Small Business Health Care Credit  When Congress came up with the Affordable Care Act (ACA), they carved out two basic categories of businesses, those with 50 full-time employees and/or full-time equivalent employees (FTEEs) and those with fewer than 50 employees. Under the ACA, businesses in the first category have a requirement to offer affordable insurance to their full-time employees and their dependents. If you are an employer with fewer than 50 full-time employees or FTEEs, you are not subject to the insurance

December 1, 2015 Advisory & Consulting, Taxes

Coverdell and 529 Education Savings Plans

  Category: Education PlanningTags: Tax Planning Article Highlights: Coverdell Education Savings Accounts  Qualified State Tuition Programs (Sec 529 plans)  Savings Contribution Limits  Gift Tax Issues  The tax code provides two primary advantageous ways of saving for your children’s education. We frequently get questions about the differences between the programs and about which program is best-suited for a family’s particular needs. The Coverdell Education Savings Account and the Qualified Tuition Plan (frequently referred to as a Sec 529 Plan) are similar; neither provides tax-deductible contributions, but both plans’ earnings are tax-free if used for allowable expenses, such as tuition. Therefore, with either plan, the greatest benefit is derived by making contributions

September 30, 2015 Advisory & Consulting, Taxes

Retirement Plan Distribution Pitfalls

Category: Retirement Planning Tags: Retirement Article Highlights: Distribution Hazards Trustee-to-Trustee Transfers Rollovers Taxability Withholding Requirements Early Withdrawal Penalty When an individual retires or leaves an employer’s service, the individual will be required to take a distribution from the employer’s retirement plan (if the employer had a plan). Depending on the employee’s age and the plan’s terms, a distribution may not be required immediately, but when it’s time to take the distribution there are a number of tax pitfalls that can create some very big tax headaches for the employee. This article will explore those hazards and discuss how to avoid them. First and foremost, if the employee does not transfer

August 11, 2015 Advisory & Consulting, Taxes

Only One IRA Rollover Every 12 Months – Period!

Category: Looking to Invest Tags: IRA Article Highlights: One rollover per 12-month period Tax consequences Difference between a rollover and a transfer Relief Although this subject has been brought up before-and, yes, we are harping on the subject because of the profound tax consequences-this is a reminder that, beginning this year, individuals are only allowed one IRA rollover in any 12-month period (this includes SEP and Simple accounts, traditional and Roth IRAs). That is, 12 months must have elapsed from the date a rollover iscompleted before another rollover can be made. Failure to abide by this rule can be expensive. And the rule applies no matter how many IRAs an

July 24, 2015 Advisory & Consulting, Taxes

Bunching Your Deductions Can Provide Big Tax Benefits

Category: Health Care Issues, Tax Central Tags: Charity, Medical, Taxes Article Highlights: Itemized Versus Standard Deductions Medical Expenses Taxes Charitable Contributions If your tax deductions normally fall short of itemizing your deductions or even if you are able to itemize, but only marginally, you may benefit from using the “bunching” strategy. The tax code allows most taxpayers to utilize the standard deduction or itemize their deductions if that provides a greater benefit. As a rule, most taxpayers just wait until tax time to add everything up and then use the higher of the standard deduction or their itemized deductions. If you want to be more proactive, you can time the

March 18, 2015 Advisory & Consulting, Taxes

Family Home Loan Interest May Not Be Deductible

Category: Tax Central Tags: Buying a Home, Home and Mortgage Article Highlights: Qualified residence interest is deductible interest that is paid or accrued during the tax year on acquisition indebtedness or home equity indebtedness with respect to any qualified residence of the taxpayer. Acquisition indebtedness means that any indebtedness that is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer is secured by such residence. Interest on unsecured home debt is generally not deductible. It is not uncommon for individuals to loan money to relatives to help them buy a home. In those situations, it is also not uncommon for a loan to be undocumented or

February 25, 2015 Advisory & Consulting, Taxes

Will the Interest on Your Vehicle Loan be Deductible?

Category: Tax Central Tags: Automotives, Tax Deduction Article Highlights: Vehicle loan interest Consumer loans secured by the vehicle Using home equity loans to create deductibility Exercising restraint when using home equity Whether or not the interest you pay on a loan to acquire a vehicle is deductible for tax purposes depends how the vehicle is being used (for business or personal purposes), the tax form on which the expenses are being deducted, and the type of loan. If the loan were a consumer loan secured by the vehicle, then the following rules would apply: If the vehicle is being used partially for business and the expenses are being deducted on

February 9, 2015 Advisory & Consulting, Taxes

Retirement Savings: the Earlier, the Better

Category: Retirement Planning Tags: Savings Article Summary: Teenagers and young adults Tax-free accumulation Earned income requirement Roth IRA Generally, teenagers and young adults do not consider the long-term benefits of retirement savings. Their priorities for their earnings are more for today than that distant and rarely considered retirement. Yet contributions to a retirement plan early in life can enjoy years of growth and provide a substantial nest egg at retirement. Due to its long-term benefits of tax-free accumulation, a nondeductible Roth IRA may be the best option. During most individuals’ early working years, their income is usually at its lowest, allowing them to qualify for a Roth IRA at a

January 7, 2015 Accounting, Advisory & Consulting, Compliance, Taxes

What to Do if You Receive a Dreaded IRS Letter

Article Highlights: CP2000 Series Notices Automated Frequently Issued In Error What You Should Do   hen the IRS thinks it has found an issue with your tax return, it will contact you via mail with a CP series notice (most commonly CP2000). Please note that the IRS will never call or e-mail you initially about a tax delinquency. This is a trick used by scammers that has become quite prevalent. Most commonly, these notices will include a proposed tax due and any interest or penalties. The notice will include an explanation of the examination process and how you can respond. These automated notices are sent out year-round and are quite

Accounting, Advisory & Consulting, Taxes

Family, Income, and Residence Changes Can Affect Your Premium Tax Credit

Article Highlights: Advance premium tax credit (APTC) Repayment avoidance Things you should report Special enrollment period f you get health insurance coverage through a government Health Insurance Marketplace, it is very important that you keep the Marketplace aware of any changes in household income, marital status, and family size. If you are receiving advance payments of the premium tax credit, it is particularly important that you report changes in circumstances, including moving, to the Marketplace. There’s a simple reason: reporting these income and life changes lets the Marketplace update the information used to determine your eligibility for a Marketplace plan, which may affect the appropriate amount of advance payments of