Newsletters

Tax Filing Reminders

November 15th  2018 calendar-year Exempt Organizations (Form 990) on extension December 16th  2019 calendar-year corporations fourth installment of estimated income tax December 31st  Deadline to complete 2019 tax-free gifts up to $15,000 per recipient Deadline for paying expenses you want to deduct on your 2019 cash basis income tax return

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Asset Protection: Is Your Real Estate Safe?

When it comes to protecting your assets, real estate presents a significant challenge. Unlike other types of assets — such as stocks, bonds, and bank accounts — real estate cannot be moved to another jurisdiction. If you are concerned about your real estate’s vulnerability to creditors’ claims, here are several strategies to consider. As you review these techniques, be mindful of fraudulent conveyance laws, under which a court can undo transfers made with the intent to hinder, delay, or defraud existing or reasonably foreseeable creditors. In light of these laws,…

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Are You Managing the Wealth in Your Business?

Too often, business owners focus exclusively on running their businesses and pay little attention to managing the wealth those businesses represent. But to ensure that you meet your financial goals — whether it’s funding a comfortable retirement, leaving a legacy for your children or employees, satisfying your philanthropic objectives, or all of the above — it’s important to treat your business as an investment. Consider Ralph, a 55-year-old business owner. Ralph has $3 million in liquid assets held in a diversified portfolio that earns a 10-percent return. He is also…

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Donate your “outdated” inventory and receive a larger tax benefit

There is a little-known tax benefit of certain contributions of inventory. The IRS has a special rule that can give your corporation larger charitable deductions for certain contributions of inventory. In general, when inventory is contributed to charity, the deduction is based on the cost (basis) the corporation had in the inventory. Thus, if the donated inventory cost $10,000, the deduction will be limited to $10,000, even if the value of the inventory is higher. However, under special rules applicable to regular (“C”) corporations, if the inventory is donated to…

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Tax savings on charitable donations of appreciated stock over cash

If you are planning to make a relatively substantial contribution to a charity, college, etc., you should consider donating appreciated stock from your investment portfolio instead of cash. Your tax benefits from the donation can be increased and the organization will be just as happy to receive the stock. This tax planning tool is derived from the general rule that the deduction for a donation of property to charity is equal to the fair market value of the donated property. Where the donated property is “gain” property, the donor does…

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Cloud Computing: Handle with Care

As workforces become increasingly mobile, more and more businesses are taking advantage of cloud-based technology to help their employees manage information more effectively and cost-efficiently. The benefits of cloud computing are substantial, but it is also important to recognize the risks and take steps to mitigate them. What is it? The Cloud Security Alliance (CSA) defines cloud computing as “a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services).” By pooling computing resources on shared servers…

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Pastor Appreciation Day – Are your “love offerings” taxable income to your pastors?

October is Clergy Appreciation month, with the second Sunday of October denoted as Pastor Appreciation Day (for 2019, Pastor Appreciation Day is October 13th).  This provides many church congregations the opportunity to show their appreciation to their pastors with financial gifts such as cash, often known as “love offerings.” Should the pastors treat these benefits as nontaxable gifts or taxable compensation? The answer depends on the donor’s intent. If a love offering is made to compensate a pastor for services previously performed, then it is taxable. If the love offering…

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Tax Filing Reminders

September 30th 2018 estate and trust income tax return (Form 1041) on extension October 15th 2018 calendar-year C corporation income tax return (Form 1120) on extension 2018 individual income tax return (Form 1040) on extension 2018 gift tax return (Form 709) on extension November 15th  2018 calendar-year exempt organizations (Form 990) on extension

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What to do when excess social security tax is withheld

If you are switching jobs or working two jobs as an employee and your total wages for the calendar year will exceed the social security wage base ($132,900 in 2019), you may be overpaying social security tax.  Unfortunately, you cannot stop the withholding.  However, you will get a credit on your next tax return for any excess withheld. Each employer is obligated to withhold social security taxes from your wages.  The total they both can withhold may exceed the maximum amount of tax that can be imposed for the year….

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Updated individual returns – new “easy” return for seniors

The IRS has released a draft of the new simplified individual income tax form, Form 1040-SR. This form may be used by taxpayers 65 and over (senior taxpayers) for the tax year 2019 and future returns. It is similar to Form 1040-EZ but without the limitations that restricted the use of Form 1040-EZ.   The new form is two pages long and has larger font sizes. It also removes the shading around some of the boxes to improve contrast for taxpayers with declining vision. It is available for seniors of…

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