June 2017 Tax & Business Alert

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IN DOWN YEARS, NOL RULES CAN OFFER TAX RELIEF

A net operating loss (NOL) occurs when a business’s operating expenses and other deductions for a particular year exceed its income. Companies (or owners) may be able to snatch tax relief from this revenue defeat. This article describes the NOL rules and some strategies for navigating them. A sidebar looks at how NOLs work in relation to the alternative minimum tax.

 

ASKING THE RIGHT QUESTIONS ABOUT LONG-TERM CARE INSURANCE

Unfortunately, many people require long-term care at some point in their lives. To hedge against this considerable financial risk, insurers offer long-term care coverage. This article asks a couple of important questions about these policies, including how to determine whether you really need one and when to buy.

 

RENTING OUT YOUR VACATION HOME? ANTICIPATE THE TAX IMPACT

When buying a vacation home, the primary objective is usually to provide a place for many years of happy memories. But some might also view the property as an income-producing investment and choose to rent it out when not using it. This article examines how the IRS treats income and expenses associated with a vacation home.

 

THOUGHTS AND MUSINGS ON FAMILY BUDGETING

Simplicity is the key to a successful family budget. But every budget needs to cover all necessary items. This brief article provides food for thought on what to include in a family budget.

May 2017 Tax & Business Alert

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COULD A COST SEGREGATION STUDY SAVE YOUR COMPANY TAXES?

Businesses that have acquired, constructed or substantially improved a building recently should consider a cost segregation study. One of these studies can enable the company to accelerate depreciation deductions, reducing taxes and boosting cash flow. This article explains how. A sidebar points out that a “look-back” study can review many previous years of tax filings for missed deductions.

 

VIATICAL SETTLEMENTS: A FUNDING MECHANISM FOR MEDICAL COSTS

Someone who’s terminally or chronically ill may lack the funds to cover significant medical costs. It may be possible, however, to sell insurance to a viatical settlement provider who will then arrange with an investor to buy the policy. This article explains how such “viatical settlements” work, including the tax impact

 

WATCH OUT FOR IRD ISSUES WHEN INHERITING MONEY

Income in respect of a decedent (IRD) can create a surprisingly high tax bill for those who inherit property, especially substantial distributions from IRAs or retirement plans. This article discusses how IRD works and what taxpayers can do to claim an itemized deduction for estate taxes attributable to amounts reported as IRD.

 

REVIEWING THE INNOCENT SPOUSE RELIEF RULES

In certain cases, an “innocent” spouse can apply for relief from the responsibility of paying tax, interest and penalties arising from a spouse’s (or former spouse’s) improperly handled tax return. This brief article reviews the rules for potentially affected taxpayers.

April 2017 Tax & Business Alert

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REVIEWING YOUR COMPANY’S BUY-SELL AGREEMENT

Many savvy businesses establish buy-sell agreements in case a co-owner voluntarily or involuntarily leaves. But it’s not enough to draft such an agreement; the document must be periodically reviewed and perhaps updated. This article examines key aspects to re-evaluate — including triggering events, structure and funding sources.

 

ABLE ACCOUNTS CAN HELP SUPPORT THE DISABLED

The Achieving a Better Life Experience (ABLE) Act of 2014 created a tax-advantaged savings account for people who have a qualifying disability (or are blind) before age 26. Modeled after the well-known Section 529 college savings plan, ABLE accounts offer benefits but have limitations as well. This article looks at both.

 

SO YOU JUST FILED YOUR TAXES – COULD AN AUDIT BE NEXT?

Many people feel a great sense of relief wash over them after their tax returns are completed and filed. Unfortunately, even professionally prepared and accurate returns may sometimes be subject to an IRS audit. This article describes why, and how to respond should an audit notice arrive in the mail.

 

TAX CALENDAR

This calendar notes two important tax deadlines for the second quarter of 2017.

 

5 GROWTH STRATEGIES FOR TODAY’S BUSINESSES

It’s probably safe to say that nearly every business owner wants his or her company to grow. The question is: How? This brief article offers up five strategies to consider, including tapping into new markets and developing new sales and delivery channels.

March 2017 Tax & Business Alert

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GOT NEXUS? FIND OUT BEFORE OPERATING IN MULTIPLE STATES

The term “nexus” refers to a business presence in a given state that’s substantial enough to trigger the state’s tax rules and obligations. This article explores common criteria for nexus and suggests strategic moves to consider. A sidebar looks at a newer approach called“market-based sourcing” that many states are using to tax out-of-state service companies.

 

4 TIPS FOR DONATING ARTWORK TO CHARITY

Individuals may want to donate artwork so it can be enjoyed by a wider audience or available for scholarly study or simply to make room for new artwork in their home. This article offers four tips for donating artwork with an eye toward tax savings, including getting an appraisal and considering a fractional donation.

 

IDENTIFYING QUALIFYING CHILDREN FOR TAX PURPOSES

Every qualifying child claimed on a tax return needn’t be a biological child. IRS rules say that a variety of individuals may qualify, under the right circumstances. This article explains why this is important and discusses some of the criteria for identifying qualifying child dependents.

 

YOU’VE HIT THE JACKPOT! NOW WHAT?

When it comes to financial planning, most of us spend our time guarding against things that could go wrong. But what if something really good happens? This brief article touches on some of the important concepts of managing a financial windfall.