Tax Law Changes

That’s Taxable?!?!

Have you ever wondered about the taxability of funds or services you receive? There are many areas in the tax code that cause confusion regarding what’s taxable. These are some of the most common. Alimony. Alimony is taxable to the person who receives it and deductible to the person who pays it. Special rules apply. Make sure you have proper…

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How social security benefits are taxed

Are you wondering if your social security retirement, survivor, and disability benefits will be subject to federal income tax on your 2016 return? Generally, when these benefits are taxed is determined by your “provisional income.” Provisional income (PI) is the product of a formula used for no other purpose than figuring out the taxable percentage of social security benefits. To…

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Avoid Hiring Mistakes in Your Start-Up

Staffing errors can spell disaster for your start-up. Here are three to watch out for. Staffing the firm with friends and family. While this strategy may work in some circumstances, hiring pals and relatives often spells trouble. For one thing, friends and family members often expect – even subconsciously – to be treated differently from other employees. A double standard,…

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Don’t include the IRS on your gift list

Suppose a relative gives you an expensive painting. Several years later, your relative dies and you decide to sell the painting. Your accountant says you’ll owe capital gain tax on the sale, and asks for your basis in order to reduce the amount on which you’ll pay tax. What’s your answer? When you sell property received as a gift, the…

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NJ’s Christie Keeps the NJ – PA Agreement !!!

Gov. Christie has decided to keep a decades-long agreement between New Jersey and Pennsylvania that allows residents to pay income tax where they live, regardless of where they work — just months after he announced he would end it. Christie said legislation passed Monday, among other recent measures, will help rein in health care costs for public employees, eliminating the need for…

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Ready to start year-end planning? Focus on the big picture

Some tax-cutting strategies make good financial sense. Others are simply bad ideas, often because tax considerations are allowed to override basic economics. Here’s one example of the tax tail wagging the economic dog. Let’s say that you operate an unincorporated consulting business. You want an additional tax write-off, so you decide to buy $10,000 of office furniture that you don’t…

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Downtime is not wasted time, Does a suggestion to boost productivity with time off sound counter intuitive?

  Research has shown that giving workers – and perhaps yourself, as a business owner – time off to recuperate from work demands can be energizing. Here are three ways your business can benefit. Read more. Does a suggestion to boost productivity with time off sound counter intuitive? Research has shown that giving workers – and perhaps yourself, as a…

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Higher self-employment taxes coming in 2017

  Did you know the national average wage index went up? You might have missed the news, but it’s likely you will notice one impact: higher self-employment taxes. How are the two related? The index is used to calculate the social security wage base, which is the amount of income subject to the 12.4% social security portion of the self-employment…

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Prepare in advance for required IRA distributions

  Once you reach age 70½, the required minimum distribution (RMD) rules say you have to withdraw at least a minimum amount from your retirement plans each year. Since the withdrawals are considered ordinary income, planning in advance can help you prepare for the impact on your federal income tax return. Here are two suggestions. Read more. Once you reach…

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