Tax Planning – Page 10 – DougFreemanCPA.com

Use a Coverdell ESA to help pay college, elementary and secondary school costs

Coverdell Education Savings Account (ESA), Tax, Tax Planning, Tax Savings / Douglas Freeman

There are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is due when the funds in the account are […]

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Take advantage of the gift tax exclusion rules

Federal Gift Tax, Gift and Estate Tax, Gift Tax, Gifts, Securities, Tax Planning, Tax Savings / Douglas Freeman

As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For

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5 ways to withdraw cash from your corporation while avoiding dividend treatment

Closely Held Corporations, Compensation, Income Tax, Small Business, Tax, Tax Planning / Douglas Freeman

Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Different approaches.

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For best results, start your strategic planning early

Human Resources, Marketing, Sales, Small Business, Strategic Business Planning, Tax, Tax Planning / Douglas Freeman

Time flies when you’re having fun — and running a business. Although it’s probably too early to start chilling a bottle of bubbly for New Year’s Eve, it’s certainly not too early for business owners to start doing some strategic planning for next year. Here are some ways to get started. Begin with your financials.

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2019 Q4 tax calendar: Key deadlines for businesses and other employers

2019 Tax Forms, C Corporation, FICA, Income Tax, Q4 Tax Calendar 2019, Tax, Tax Planning / Douglas Freeman

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. October

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Getting a divorce? There are tax issues you need to understand

Divorce, Income Tax, Qualified Domestic Relations Oder (QDRO), Tax, Tax Planning / Douglas Freeman

In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are four issues to understand if you are in the process of getting a divorce. Alimony or support payments. For

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The key to retirement security is picking the right plan for your business

401 K, Income Tax, IRA, Retirement, Simplified Employee Pension (SEP), Small Business, Tax Planning, Tax Savings / Douglas Freeman

If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages. 401(k) plan One of the best-known retirement plan options is the 401(k) plan. It provides for employer contributions made

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The tax implications of a company car

Employee Benefits, Income Tax, Repairs and Maintenance, Small Business, Tax, Tax Deduction, Tax Planning, Vehicle Expenses / Douglas Freeman

The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This benefit results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefits of driving the cars!) Even better, recent

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Taking distributions from your traditional IRA

Federal Income Tax, Income Tax, Individual Income Tax, Internal Revenue Service, IRA, Required Minimum Distributions (RMDs), Retirement, Roth IRA, Simplified Employee Pension (SEP), Tax, Tax Planning, Tax Savings / Douglas Freeman

If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (including a SEP-IRA). It’s even more critical to carefully plan for withdrawals from these retirement-savings vehicles. Knowing the fine points of the IRA distribution rules can make a significant difference in how much you and your family

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The tax implications of being a winner

Deductions, Documentation, Doucment Retention, Federal Income Tax, Gambling Taxation, Income Tax, Individual Income Tax, Internal Revenue Service, Itemized Deduction, Tax, Tax Deduction, Tax Planning, Tax Record Retention / Douglas Freeman

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune. Winning at gambling. Whether you win at the casino, a bingo hall, or elsewhere, you must report 100% of your winnings as taxable income. They’re reported

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