Projecting income can allow businesses to use timing to their tax advantage
By projecting your business’s income for this year and next you can determine how to time income and deductions to your advantage. Typically, it’s better to defer tax. You can do so by: Deferring income to next year. If your business uses the cash method of accounting, you can defer billing for your products or…
Beware of New IRS Tax Scam
A new tax scam has the Internal Revenue Service (IRS) concerned as it uses a website that looks almost identical to the IRS e-Services online registration page. Reports like these are not uncommon as scammers use sites like this to trick people into giving out their personal and financial information. The official address of the…
With election results in, what’s next for tax law changes?
President Obama has been reelected, the Senate will remain in the hands of the Democrats (but without a filibuster-proof supermajority) and the House will continue to be controlled by the Republicans. In other words, the political makeup of Washington will be about the same in 2013 as it is now. As a result, it’s still…
Social Security Facts and Figures
Since its establishment in 1935, Social Security has affected nearly every American. But now that the financial stability of the program has become an issue, uneasiness sets in as to how long it will last us. Regardless of how old you are, there are several things you need to know about Social Security: What you…
Consider the tax implications if you’re awarded restricted stock
In recent years, restricted stock has become a popular form of incentive compensation for executives and other key employees. If you’re awarded restricted stock — stock that’s granted subject to a substantial risk of forfeiture — it’s important to understand the tax implications. Income recognition is normally deferred until the stock is no longer subject…
Reporting Requirements of Employer Sponsored Health Coverage
With the passage of the Affordable Care Act, employers are now required to report the cost of coverage under an employer-sponsored group health plan. By reporting the cost of health care coverage on the Form W-2, the value of the employee’s excludable contribution from his or her income is not taxable. This type of reporting…
Lock in the 0% long-term capital gains rate while it’s still available
The long-term capital gains rate is currently 0% for gain that would be taxed at 10% or 15% based on the taxpayer’s ordinary-income rate. But the 0% rate is scheduled to expire after 2012. To lock it in, you may want to transfer appreciated assets to adult children or grandchildren in one of these tax…
Planning for the New Retirement
With a fluctuating economy, retirement planning has changed a lot over the decades. One major adjustment is that people are working longer. Today almost 1 in 3 people aged 65 to 69 are still employed. Many need the money, but others simply love their jobs and want to keep them. Whether you’re one of these…