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Will Leasing Equipment or Buying It Be More Tax Efficient for Your Business?

Posted by L&H CPAs on Apr 18, 2019 9:00:00 AM

Recent changes to federal tax law and accounting rules could affect whether you decide to lease or buy equipment or other fixed assets. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them .

 

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Tags: Business Owners & Entrepreneurs

Properly Funding Your Revocable Trust Is the Key to Unlocking Its Benefits

Posted by L&H CPAs on Apr 17, 2019 9:00:00 AM

If your estate plan includes a revocable trust — also known as a “living” trust — it’s critical to ensure that the trust is properly funded. Revocable trusts offer significant benefits, including asset management (in the event you become incapacitated) and probate avoidance. But these benefits aren’t available if you don’t fund the trust.

 

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Tags: Estate Planning

Still Working After Age 70½? You May Not Have to Begin 401(K) Withdrawals

Posted by L&H CPAs on Apr 16, 2019 9:00:00 AM

If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required withdrawals from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception that applies to certain plan participants who are still working for the entire year in which they turn 70½.

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Tags: Taxes

Defeating Age Discrimination in the Workplace

Posted by L&H CPAs on Apr 11, 2019 11:09:05 AM

Despite record-breaking low unemployment rates, "age discrimination remains a significant and costly problem for workers, their families and our economy," says a report from the Equal Employment Opportunity Commission (EEOC). More than 50 years after the passage of the Age Discrimination in Employment Act (ADEA), employers still wrestle with these issues.

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Tags: Planning

When Life Insurance Becomes Taxable

Posted by L&H CPAs on Apr 11, 2019 11:00:45 AM

Consider these facts on aging from the 2010 Census¹:

  • The highest growth rate for a 10-year age group within the older population (age 65+) was for men 85 to 94 years old (46.5%). Women in this age group grew by 22%.
  • Men 90 to 94 years old had the fastest growth rate (50.3%) of all five-year age groups.

Living this long may have unexpected tax consequences. Here's why.

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Tags: Estate Planning

5 Benefits of Working in Retirement

Posted by L&H CPAs on Apr 11, 2019 10:50:44 AM

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32% by 2022, up from just 20% in 2002.1 As the Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. Read on to discover some of the benefits.

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Tags: Retirement Planning

Investment Interest Expense Is Still Deductible, but That Doesn’t Necessarily Mean You’ll Benefit

Posted by L&H CPAs on Apr 11, 2019 9:00:00 AM

As you likely know by now, the Tax Cuts and Jobs Act (TCJA) reduced or eliminated many deductions for individuals. One itemized deduction the TCJA kept intact is for investment interest expense. This is interest on debt used to buy assets held for investment, such as margin debt used to buy securities. But if you have investment interest expense, you can’t count on benefiting from the deduction.

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Tags: Taxes

Building an On-Off Switch into Your Estate Plan

Posted by L&H CPAs on Apr 10, 2019 9:00:00 AM

The right estate planning strategy for you likely is the one that will produce the greatest tax savings for your family. Unfortunately, there can be tension between strategies that save estate tax and ones that save income tax. This is especially true now that the Tax Cuts and Jobs Act nearly doubled the gift and estate tax exemption — but only temporarily. Through 2025, income tax might be a greater concern, but, after that, estate taxes might be a bigger issue.

Fortunately, it’s possible to build an “on-off switch” into your estate plan.

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Tags: Estate Planning

When Are LLC Members Subject to Self-Employment Tax?

Posted by L&H CPAs on Apr 9, 2019 9:00:00 AM

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. 

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Tags: Business Owners & Entrepreneurs

Create a Road Map to Protect Your Estate

Posted by L&H CPAs on Apr 4, 2019 9:00:00 AM

No matter how much effort you’ve invested in designing your estate plan, your will, trusts and other official documents may not be enough. Consider creating a road map — an informal letter or other document that guides your family in understanding and executing your plan and ensuring that your wishes are carried out.

 

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Tags: Estate Planning

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