When it comes to your taxes, you want to save as much as possible. As December 31 gets closer, it’s important to turn your attention to maximizing your ability to take advantage of tax breaks. Read more
If you are a person who has assets of significant value, you want to pass this wealth on to your heirs. To do so while minimizing estate taxes and providing the assets to your heirs tax-free, it is vital you understand tax strategies that work best in these situations. Along with common strategies such as gifting and making direct payments to colleges, universities, and other educational institutions, other possibilities may exist based on low interest rates and the volatility of the stock market. If you wonder which will work best for your situation, let’s explore various strategies a bit more in-depth.
If you are like many people, you may be involved in cryptocurrency trading, such as Bitcoin. If this is the case, don’t assume that you have found a Shangri-La that means any money you earn is not sought after by the IRS to be taxed. In fact, the opposite is true, since the IRS has for several years been on an all-out offensive to track down those who may have unreported cryptocurrency transactions. If you are curious about how your involvement in cryptocurrency will impact your taxes, here is everything you need to know.
Your business’ assets are one of its greatest strengths. They support your day-to-day operations, can collateralize a loan, and could manufacture inventory. It’s important to track and account for them accurately.
If you are like many people, you are thinking about what may be ahead as you near retirement. Whether you are within a few years of retirement or still have decades to go, contributing as much as possible to your retirement plans can pay off big in the years ahead. But as you know, the contributions to various plans can change from year to year, so it’s important to know what you can or cannot do regarding your 401(k), IRA, or other plan. As we now get 2021 underway, here are the contribution limits for various plans of which you should be aware.
As a business owner, tax season is probably not a time of year you look forward to each time it rolls around. However, you also know that getting your taxes completed and filed as easily and quickly as possible will make your life much easier in the months ahead. Unfortunately, many business owners get so caught up in other activities during the year that they fail to have their records properly organized prior to meeting with their CPA. As a result, tax filing becomes more difficult than necessary. Without various receipts and other documentation, you as a business owner could ultimately pay far more in taxes than is necessary. To avoid this scenario, here are some excellent recordkeeping strategies to simplify this year’s tax preparation.
With every business decision that you make, you probably try to calculate how much money you’ll need to spend versus how much money you could save. If you’re considering finally hiring a CPA, you should know that a CPA helps to save you money in many different ways. And, if you already have a CPA, you should know that they are definitely earning their keep. Following are nine ways that a CPA helps save you money, no matter what size business you have.
Did you know that your business has a credit score? It’s similar to your personal credit score – it tracks missed and late payments, if you’ve defaulted on loans, and your business’s assets and liabilities. But unlike your personal credit score, it’s not compiled by a credit bureau. People pulling your business’ credit score most commonly pull it from a company called Dun and Bradstreet.
In what most of us would call a normal world, bankruptcies are filed each day. However, during these times when more and more people are dealing with the financial fallout associated with COVID-19, it is estimated that numerous individuals and businesses will be filing for bankruptcy in the months and years ahead. Since the bankruptcy process is complex, confusing and will have a significant impact on a person’s finances and particularly their credit, it is a decision that should be made only after careful thought, and as a last resort. If this is something you are considering, you should know the key differences between Chapter 7, Chapter 11, and Chapter 13 bankruptcies.
The percentage of tax returns being audited each year has steadily declined, due in part to dwindling government resources. Still, if you’ve been notified of a pending audit, those percentages don’t mean much. The only thing that matters is the situation that you’re now in. There are two kinds of audits; in person and by mail. It’s disconcerting to receive an audit notification, no matter what kind. If you find yourself in this situation, here’s how to handle it.