Archives for Newsletter and Updates

It’s a lot more efficient to retain good employees than to find and hire new ones. The Society for Human Resource Management (SHRM) recently asked its members how they are adapting their employee benefit programs to avoid losing quality workers. Two-thirds of respondents in the study represent employers with fewer than 500 employees. SHRM’s “Strategic Benefits” study set the stage by asking employers how many are having a tough time retaining highly skilled employees. Fully 37% reported that this is a problem for them — up from 27% only four years ago. That challenge was more acute among self-described “high-tech”
Read More

Did you know that, once you turn age 70½, you must start taking mandatory annual withdrawals from your traditional IRAs, including any simplified employee pension (SEP) accounts and SIMPLE IRAs that you set up as a small business owner? These mandatory IRA payouts are called required minimum distributions (RMDs). And there’s a stiff penalty if you fail to take timely distributions. Unfortunately, taking RMDs also will cause you to report additional taxable income on your federal income tax return. This will increase your federal income tax liability and possibly your state income tax liability, if applicable. Here are the rules
Read More

When someone dies, one of the first questions that close relatives usually have is whether they are personally responsible to pay the credit card bills of the decedent. They may even start getting telephone calls from creditors asking them to pay outstanding balances. Close relatives may also want to know: Who is responsible for paying the mortgage of the decedent? If they are entitled to inherit money, can they take their share regardless of the creditor? This article will discuss estate debt issues and the more specific issue of whether a creditor has a right to attach non-probate assets of
Read More

Losses can be used, within certain limits, to offset other highly-taxed income, such as salary from a job. However, in general, losses from “passive” activities can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. The tax law generally defines a passive activity as a trade or business in which you do not “materially participate.” The IRS has established various tests for determining whether someone qualifies as a material participant. For instance, if you participate in the activity for more than 500 hours during the
Read More

The IRS, taxpayers and tax preparers share a common enemy: identity thieves. We all have a part to play in the fight against tax-related identity theft. Your role starts by learning the mechanics and warning signs. From there, taxpayers can take proactive steps to protect their data online and at home. Understand How Tax Fraud Happens Dishonest individuals may steal taxpayers’ personal and financial information from sources outside the IRS, such as social media accounts where people tend to share too many details or bogus phishing emails that appear to come from the IRS or a bank. Once they obtain
Read More

The Trump Administration and the Republican majority in Congress plan to repeal and replace the Affordable Care Act (ACA) in the coming months. In the meantime, however, employers must continue to comply with the existing rules for 2016, including the information reporting requirements and shared responsibility provisions. The IRS previously issued three sets of FAQs that provide guidance on employer responsibilities under the Affordable Care Act (ACA). This guidance was recently updated to include significant clarifications and help employers ensure that they’re in compliance with the rules. Here, we highlight the extensive updates that were issued in December 2016 and
Read More

Business succession and exit planning should ideally be done over a long period of time (unless illness or another emergency makes it necessary to address them in the short term). Your business should be readied for sale on a continuing basis. But as you get closer to the time you want to sell, you should make changes to enhance the value. It’s similar to putting a house on the market. Before you put up the “for sale” sign, you fix deficiencies and highlight coveted features. Do the same before selling your business. Cash Flow and Revenue Drive Value Most privately
Read More

Is there frustration building in your organization due to clashing generations about work? If so, you are not alone. The good news is it doesn’t need to trigger an explosion. In many workplaces, Baby Boomer and Gen X supervisors are exasperated with younger workers — typically those in the Millennial generation, who were born between 1981 and 2000. Some older supervisors have trouble managing the younger workers. By the same token, Millennial generation employees often are demoralized by an environment they do not find conducive to doing their best work. Be Proactive If you are facing these issues, don’t wait
Read More

When someone dies owning real estate, problems may occur — especially if the individual doesn’t have a will. This article addresses some of the issues that could arise so that you can plan ahead to make the process go smoothly for your heirs. A person can leave real property specifically to someone in a will or trust. For example, a father can leave a residence or vacation home to one of his three adult children by simply listing it in his will. Real estate can also be left to heirs as part of an individual’s net estate or residuary estate.
Read More

In one U.S. Tax Court decision involving several consolidated cases, the court concluded that gains from a partnership’s land sales were high-taxed ordinary income rather lower-taxed long-term capital gains. We’ll explain the decision, but first let’s cover some background information. Capital Gains Tax Basics Long-term gains recognized by individual taxpayers from the sale of capital gain assets are taxed at lower federal rates than ordinary income. Currently, 20% is the maximum federal income tax rate on net long-term capital gains from most capital assets held for more than one year. That ignores the possibility that the 3.8% Medicare surtax on net
Read More