Archive | Tax Strategies

Tax moves 2014

9 Tax Moves for 2014

Although 2014 is more than halfway over, there are still options for taxpayers looking to save on their tax bill. 1. Sell securities. The maximum tax rate for long-term capital gains is 15% (20% for those in the top two ordinary income tax brackets). Under recent legislature, you may have to pay a surtax of 3.8% on […]

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Household Employees

Tax issues abound with household employees because many employers aren’t sure how to deal with payment of a household employee.  Here are four ways to avoid tax-time problems with household employees. Don’t misclassify a household employee as an independent contractor. With the IRS increasingly vigilant in regards to employees v. independent contractors, it remains important […]

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Home Office Deduction 2013

You may not know that the IRS offers a new method for home office deductions for 2013. With the increasing emphasis on work-schedule flexibility and new cloud storage advances, working from home has exploded in popularity. Self-employed people continue to work from home as well. As a result of these technological advances, more and more […]

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Year-End Tax Planning for Individuals

As the year end approaches, there is still time to take action to reduce your tax for 2013. Here are some possible year-end tax planning strategies to reduce your taxes for 2013. If necessary, increase the amount you set aside for next year in your employer’s health flexible spending account (FSA). If you become eligible […]

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Transferring a Family Business

Transferring a family business is a unique situation that requires careful, specialized planning. Avoiding estate taxes without getting tripped up by rules and regulations can seem complex. However, with careful planning, there are many effective methods to efficiently transfer your family business. The two simplest methods are usually used when it is important to keep the […]

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11 Expiring Deductions for 2013

Quite a few tax deductions will expire this year; here is a brief round-up of some of the deductions you may want to take advantage of before they expire. Unless otherwise noted, all deductions expire on December 31, 2013. 1. Cancellation of Debt Exclusion: Currently, individuals can exclude up to $2 million of COD income […]

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Net Investment Income Tax

The Net Investment Income Tax is just what it sounds like–a tax on investment income. More specifically, it’s a flat 3.8% tax on the net investment income of individuals, estates, and trusts with MAGI (Modified Adjusted Gross Income) over $250,000 for married filers and $200,000 for single filers. It’s reported and paid on Form 1040 […]

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Creating a Living Trust

Living trusts are appealing to those who want to avoid probate (the legal process of paying the deceased’s debts and distributing the estate to heirs). A living trust  is simply a trust you create while you’re alive, as opposed to a trust that is created upon your death according to the terms of your will. A […]

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employees vs. contractors

Subcontractors vs. Employees

Subcontractors are attractive to employers from a tax standpoint. However, if you misclassify an employee as an independent contractor, the IRS will require you to pay not only the back payroll taxes and withholdings, but also penalties and interest charges. Here are the tests that the IRS requires you to pass to classify someone as […]

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