Secure 2.0 Retirement Bill

At the very end of March, the House of Representatives passed a version of the bill known as Secure 2.0. The bill passed the House with overwhelming bipartisan support in a 414-5 vote. The House version still needs to pass in the Senate, where there are differing ideas on exactly what the bill should contain. There is strong support, so it is less of a question of if Secure 2.0 will become law than what exact version.The Secure 2.0 bill in any version aims to help Americans save for retirement [...]

2022-05-01T12:00:05-08:00May 1st, 2022|

What Every Taxpayer Needs to Know This Season

The IRS is currently suffering a severe backlog in processing returns from 2021 for the 2020 tax year. As of Dec. 31, there were still more than 6 million unprocessed individual returns with notices and pending refunds. There are a few things every taxpayer should know that can help them navigate any delays in filing or speeding up the process to make filing this year as smooth as possible.Pass on the PaperNothing speeds up the process like electronic filing. Despite the uptick in electronic filing over recent years, the agency [...]

2022-04-01T12:00:05-08:00April 1st, 2022|

Taxation of Legal Settlements and Fees

The taxation of legal settlements and fees is a complex topic. While the mechanics to make a proper claim are now easier, the rules are still complex. Below we look at six rules to consider when it comes to the taxation of legal settlements and the deduction of legal fees on your taxes.Taxes depend on the origin of the claim; or in plain English, according to why you are seeking recovery. For example, in a case where the plaintiff is suing another business for losing profits, the settlement would be [...]

2022-03-01T12:00:05-08:00March 1st, 2022|

2022 U.S. Tax Legislation Forecast

No one knows for sure what 2022 will bring in the form of tax legislation, but there is certain to be some action. Top tax analysts think there are several topics that are likely to come up in 2022. Most predict that a lot of potential changes that were discussed but never made much traction in 2021 will be revisited.Rolling Back Corporate Tax RatesBack in 2017, then-President Trump’s Tax Cuts and Jobs Acts (TCJA) reduced corporate tax rates. While a bid raise them again failed in 2021, many believe there [...]

2022-02-01T12:00:05-08:00February 1st, 2022|
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The Risks of Using Self-Directed IRAs

Self-directed IRAs (SDIRAs) are becoming more and more popular as IRA holders look to enter alternative investments. While SDIRAs can open up a world of investment options, the rules around them are complicated and compliance can be tricky. Below, we’ll look at a couple of relevant court cases that illustrate some of the potential pitfalls.Self-Directed Equals Higher FeesA SDIRA can own an investment in pretty much any type of asset except life insurance or collectibles. The downside to accessing investments beyond stocks, mutual funds, ETFs and bonds is that it [...]

2022-01-01T12:00:05-08:00January 1st, 2022|

Year-End Tax Planning Tips for Individuals and Businesses

Here we are again, nearing the end of another year. While the tax deadline for 2021 isn’t until April 2022, now is the time to plan and make some strategic moves to optimize your tax situation. Below we’ll look at some tax planning ideas for both small businesses and individuals.Business Tax PlanningBusiness owners should consider a few potential planning areas. Below we’ll look at a handful of relevant topics.Section 163(j) Interest Expense LimitationBusinesses can deduct interest expenses, subject to a limit at 30 percent of adjusted taxable income (ATI). The [...]

2021-12-01T12:00:05-08:00December 1st, 2021|

Potential New Tax on Stock Buybacks and What it Could Mean for the Financial Markets

President Biden’s latest spending bill could result in a new tax on corporate stock buybacks. In its most recent incarnation, the Senate version of the plan includes a 2 percent excise tax on stock buybacks. Still, this isn’t enough for many critics of stock buybacks, who claim they incentivize short-term behavior in lieu of long-term investment.Short-Term IncentivesStock buyback programs have long been criticized for giving a short-term boost to share prices with funds that could have been used for long-term investment instead. Critics, including the current president, believe stock buybacks [...]

2021-11-01T12:00:05-08:00November 1st, 2021|

New Proposed Tax Laws

The House recently released a nearly 900-page proposed bill that would make major changes to current tax laws. The bill is intended in large part to help pay for both the Biden Administration’s budget and infrastructure stimulus bill.It’s important to keep in mind that the provisions and changes outlined below are by no means settled. Changes can (and likely will) still be made as the Senate ratifies the bill; however, the remainder of this article should give readers a good idea of the most significant provisions.Income Tax Rates are RisingThe [...]

2021-10-01T12:00:05-08:00October 1st, 2021|

Tax Breaks for Helping Relatives

It’s not uncommon for adult children or siblings to act as caregivers for family members or give them financial assistance for medical or long-term care needs. The problem is that all too often those providing the help don’t take advantage of the tax benefits.Types of CareCaregiving happens through many different avenues. For example, family members might pay for services that their elderly parents need, such as housekeeping, meal preparation, or nursing care. Outside the home, they may pay for all or a portion of the cost of an assisted living [...]

2021-09-01T12:00:05-08:00September 1st, 2021|

How to Turn a Summer Job into a Tax-Free Retirement Nest Egg and More

Tis the season for summer jobs for high school and college kids. These seasonal jobs are more than just an opportunity for teens and college students to earn some money and gain experience. They also provide the opportunity for seeding a significant retirement nest egg and even a down payment on a home through a Roth IRA.Seems too good to be true? Well, it’s not – but as always, the devil’s in the details, and it is not exactly a free lunch. So, let’s walk through exactly how this all [...]

2021-08-01T12:00:05-08:00August 1st, 2021|