Tax records: What can you toss and what should you keep?
Mon, Apr 1, 2024

Generally, the IRS has three years to audit a tax return, from the later of the due date of the return, or the date the return is filed. But many exceptions exist that make it prudent to keep financial records even longer. Some states also have different records retention requirements. Here’s the lowdown on records retention, broken down by various types of documentation.

Is your business closing? Here are your final tax responsibilities
Mon, Apr 1, 2024

Businesses shut down for many reasons, including the owner’s retirement, an expired lease, staffing shortages, partner conflicts and increased supply costs. Closing a business means taking care of various tax obligations that must be met.  This article provides a rundown.

4 ways corporate business owners can help ensure compensation is “reasonable”
Mon, Apr 1, 2024

Owners of incorporated businesses know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is taxed only once — to the employee who receives it.

Payable-on-death accounts: Beneficial tools if used correctly
Mon, Apr 1, 2024

Payable-on-death accounts can provide a quick, simple and inexpensive way to transfer assets outside of probate. They can be used for bank accounts, certificates of deposit and even brokerage accounts.

Tax Calendar
Mon, Apr 1, 2024

This calendar notes important tax deadlines for the second quarter of 2024.

Retirement saving options for your small business
Fri, Mar 1, 2024

Business owners who wish to set up a retirement plan for themselves and their employees may be worried about the financial commitment and administrative burdens involved.  This article looks first at a “simplified employee pension” (SEP). Small business owners who establish and contribute to a SEP by the due date of their 2023 tax returns can still see tax savings for 2023. A sidebar describes a second retirement saving option, which is a “savings incentive match plan for employees” or SIMPLE.

Hiring? How to benefit from the Work Opportunity Tax Credit
Fri, Mar 1, 2024

Businesses that are seeking to hire should be aware of a valuable tax credit for hiring individuals from one or more targeted groups. Employers can qualify for the Work Opportunity Tax Credit (WOTC), which is worth as much as $2,400 for most eligible employees ($4,800, $5,600 and $9,600 for certain veterans and $9,000 for long-term family assistance recipients). The credit is generally limited to eligible employees who begin work for the employer before January 1, 2026.

Have you recently reviewed your life insurance needs?
Fri, Mar 1, 2024

At one time, life insurance played a much bigger role in estate planning than it does now. That’s because life insurance was needed to pay estate tax, which affected more people than it does now. With the federal gift and estate tax exemption now at $13.61 million for 2024, far fewer families must pay estate tax. Here’s how to evaluate your life insurance needs in light of circumstances today.

The Child Tax Credit is still available
Fri, Mar 1, 2024

Parents know that raising children is expensive. Although some of the enhancements of the Child Tax Credit (CTC) have expired, the credit is still available for eligible parents of children under age 17.  Plus, there’s still time for taxpayers to claim the CTC on their 2023 tax returns, if they haven’t filed yet. This short article reviews the current rules.