Rental Real Estate & the Pass-Thru Tax Deduction

On January 18, 2019, the Internal Revenue Service finalized regulations for the new tax deduction on qualified business income (QBI) from pass-thru entities. IRC section 199A now contains a safe harbor provision listing the requirements for rental activities to be recognized as a qualified trade or business, which is a prerequisite for eligibility to receive the 20% QBI deduction. Overview of […]

Overview of Small Business Retirement Plans

Below is an overview of the most common retirement plans offered by small businesses. If your company doesn’t currently sponsor a retirement plan, or if you’re not pleased with the one you have, this summary can help you see how these choices stack up. Safe Harbor 401(k)s As 401(k) plans have gained popularity, many employees […]

Tax Cuts & Jobs Act checklist for 2019

Accounting Today
December 18, 2018

The Tax Cuts and Jobs Act brought about many changes for the 2019 tax return filing season. There are so many changes that there was concern about possible delays to the start of the filing season as the Internal Revenue Service works to update software, forms, instructions, and publications with restricted resources. The IRS has still expressed optimism that the filing season will start on time. The new postcard Form 1040 may look simplified at first glance, but a look at the new schedules….

Winning Social Security’s Waiting Game

As more baby boomers move into retirement, there is increased interest in Social Security retirement benefits.  In particular, seniors must decide when to begin receiving their benefits.  Currently, the full retirement age (FRA) for Social Security is 66.  That age applies to people born from 1943 – 1954.  FRA gradually increases for younger workers, reaching […]

Drawing Down Your Portfolio in Retirement

Retirees often need money from their investment portfolio, if they have little or no earned income.  For many seniors, tax-efficient withdrawals require two levels of decisions.  First, should the dollars come from taxable accounts or from tax-deferred accounts such as IRAs?  Second, regardless of where the money is coming from, how will a portfolio be […]

Tax-Efficient IRA Withdrawals

Many people save for retirement by putting pretax dollars into an employer-sponsored retirement plan, such as a 401(k).  Those dollars may be rolled into an individual retirement account (IRA), perhaps at retirement or after a change in jobs.  An IRA rollover can maintain the tax deferral. Ultimately, those pretax dollars will be withdrawn and reported […]

The IRS May Put You on Hold

During the tax preparation season, business owners, individual taxpayers, and CPAs often have questions for the IRS.  If you need to call the agency, be prepared for a long wait.  Increased tax code complexity coupled with budget constraints have resulted in frustrating experiences for many callers. Advocate’s Assessment In her latest report to Congress, National […]

Deducting IRA Contributions

The deadline for 2018 IRA contributions is April 15, 2019.  Workers and their spouses who were under age 70 at year-end 2018 can each contribute up to $5,500, or $6,500 for those 50 and older.  For traditional IRAs, income limits don’t apply. That is, those named can make contributions of these amounts to a traditional […]

Past Losses Offer Winning Opportunities

For nearly two decades, investors have been riding a stock market roller coaster.  The late 1990s tech stock boom turned into a bust in the early years of this century, as the Dow Jones Total Stock Market Index fell by approximately 45%.  After a real estate-led recovery pushed stocks to new highs, a real estate […]