August 2017 Tax & Business Alert

/in , /by
SHOULD YOU CONVERT FROM A C CORPORATION TO AN S CORPORATION?

Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, they may consider converting their businesses into S corporations. This article reviews some of the important considerations associated with this decision. A sidebar looks at the requirements for converting to S status in the first place.

 

COOL DOWN WITH A DIP INTO YOUR TAX RECORDS

A good way to beat the heat during the dog days of summer is to organize your tax records. Granted, it may not be as exhilarating as jumping off the high dive, but a dip into these important documents now may save taxpayers headaches later. This article explains the IRS guidelines for tax-record retention, as well as some important exceptions to consider.

 

IRS PERMITS HIGH-EARNER ROTH IRA ROLLOVER OPPORTUNITY

As highly compensated employee (HCE) 401(k) plan participants approach retirement, a potentially useful tax-efficient IRA rollover technique may be a valuable savings tool. This brief article reviews IRS rules about how HCEs can allocate both pretax and after-tax employee contribution 401(k) assets between standard and Roth IRAs.

 

SHIFTING CAPITAL GAINS TO YOUR CHILDREN

Investors looking to save tax dollars should look to their kids for assistance. Giving appreciated stock or other investments to one’s children can minimize the impact of capital gains taxes. This brief article suggests one strategy involving a stock sale and the purchase of a car.

Two senators offer ANOTHER option

/in /by

The day the U.S. Senate released its bill to overhaul the Affordable Care Act (ACA), Senators Lindsey Graham (R-SC) and Bill Cassidy (R-LA) announced an alternative. Under the proposal, federal dollars now spent on ACA insurance would be block granted to states. The funds could be distributed as tax credits, subsidies and other ways the states see fit. The individual and employer mandates would be repealed, and pre-existing conditions would be covered. Most ACA taxes would remain. Medicaid funding to states would continue to grow.

Revised health care plan to be unveiled Thursday

/in , /by

U.S. Senate Majority Leader Mitch McConnell (R-KY) announced that a revised version of major health care legislation would be made public on 7/13 and a vote is expected sometime next week. McConnell didn’t disclose any of the changes that some Republican senators have opposed in the bill to repeal the Affordable Care Act. He also pushed back the Senate’s planned August recess by two weeks to allow senators more time to work on the measure.

Should You Report Changes to the Health Insurance Marketplace?

/in /by

Do you receive your health insurance coverage through the government’s Health Insurance Marketplace? Many who do also qualify for a premium tax credit, which those with moderate incomes can use to help pay for coverage. You can choose to get the credit immediately or to receive it as a refund later when you file your tax return.

Taking the credit up front can help you defray the costs of coverage, but remember that the amount you’re eligible for may be affected by changes in your circumstances during the year. You may end up qualifying for a higher or lower credit depending on changes in your income or the size of your family, so it’s important to report those changes to the Marketplace when they occur. If you have questions about the tax consequences of your health insurance plan or any other tax-related issues, please contact our office today.