21February
2019
Six Red Flags of Financial Statement Fraud

Many incidents of fraud are discovered inadvertently. For example, a staff member may notice something that doesn’t seem right and mentions it to a manager. Upon investigation, internal theft is found. But considering the potential damage that fraud can inflict on a company, it is obviously better to do more than depend on mere chance. Keep in mind that the earlier a company detects fraudulent activity, the less damage will be done. With that in mind, here are six red flags that can suggest wrongdoing in your workplace: 1. Unfair practice charges. If your company is sued and the lawsuit…

21February
2019
Higher-Income Taxpayers: Open the Door to a Roth IRA

If you expect to be in a relatively high tax bracket during your retirement years, you should consider pumping as much money as you can into Roth IRAs. However, your ability to make annual Roth contributions may be reduced or eliminated by a phase-out rule that affects high-income individuals. Good news: You can circumvent the phase-out rule by making an annual non-deductible contribution to a traditional IRA and then converting the account into a Roth IRA. This article explains that strategy after first covering some basics about Roth IRAs and the contribution rules that apply to them. Making Annual Roth…

21February
2019
Sell the Family Business the Tax-Smart Way

When the owners of a family business are ready to sell, there are numerous considerations. One of the most important is handling the sale in a tax-wise manner. In most cases, the buyer wants to make a direct purchase of the business’s assets — as opposed to buying all the ownership interests in the legal entity used to conduct the business. A direct asset purchase allows the buyer to “step up” the tax basis of the acquired assets to reflect the purchase price. That means bigger post-purchase tax write-offs for depreciation, amortization, cost of goods sold and so forth. A…

07February
2019
Save on Taxes While Doing Good

If you own assets that have appreciated significantly over the years, you may be able to profit more by giving them away than by selling them. By setting up a charitable remainder trust (CRT), you can transform a future tax liability into a current tax break, receive a steady source of income for the rest of your life and leave a gift to your favorite charity. Here’s how it works. Let’s say you invested $50,000 years ago in a stock now worth $350,000. One option is to sell the stock now and use the proceeds to help finance your retirement….

07February
2019
Classification of Workers: Could Section 530 Come to the Rescue?

The IRS and employers often are at loggerheads over the classification of workers as employees or independent contractors. Typically, many employers want to to treat workers as independent contractors, while the IRS often determines that workers are misclassified employees. Sometimes, the issue winds up in the courts. Fortunately, there might be a way for employers to obtain a measure of protection if the IRS challenges the classification of a worker or workers. With “Section 530 relief,” an employer may avoid adverse tax consequences from a misclassification of employment status. However, this special safe-harbor rule is only available if the employer…

07February
2019
Put It in a Letter

American actor Lee Marvin once said: “As soon as people see my face on a movie screen, they knew two things. First, I’m not going to get the girl, and second, I’ll get a cheap funeral before the picture is over.” 1 Tip: Contact Information A letter of instructions also might include contact information for individuals who could be helpful in the distribution of your assets, such as your lawyer or financial professional. Most people don’t spend too much time thinking about their own funerals, and yet many of us have a vision about our memorial service or the handling…