529 plans offer two tax-advantaged education funding options
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends the school. A savings plan can fund expenses beyond college tuition on a tax-free basis. The TCJA expands the definition of qualified expenses to generally include elementary and secondary school tuition. However, tax-free distributions used for such tuition are limited to $10,000 per year. Contact us with questions.
4 pillars of a solid sales process
Generally, there are four pillars of a solid sales process. First, your marketing and sales departments need to work together to create an expanding universe of customers and prospects. Second, a sense of urgency is crucial; determine how quickly salespeople are following up on leads. Third, documentation is important and unavoidable. Ensure you’re using the right technology to track leads and sales. And fourth, consistency in approach typically yields success. Look for irregularities in the sales process and eliminate them. Contact us for further info and ideas.
A strong BYOD policy combines convenience with security
Many companies now take a “bring your own device” (BYOD) approach to technology to boost efficiency while reducing IT costs. But BYOD comes with risks. Sensitive company data becomes much less secure when networks are accessible via personal devices that could be stolen, lost or hacked. Meanwhile, employees may worry about loss of privacy and whether you might wipe everything off their devices. A strong BYOD policy must balance these two concerns, ensuring security but also preserving employees’ control over their own devices. We can provide further information.
Charitable IRA rollovers may be especially beneficial in 2018
If you’re age 70 1/2 or older, you can make direct contributions (up to $100,000 annually) from your IRA to a qualified charity without owing any income tax on the distributions. This break may be especially beneficial now because of TCJA changes that affect who can benefit from the itemized deduction for charitable donations. While you might be able to achieve a similar result from taking the RMD, contributing that amount to charity and taking an itemized deduction for the donation, fewer taxpayers benefit from itemizing under the TCJA. Contact us for details.
Could a cost segregation study help you accelerate depreciation deductions?
Businesses that acquire, construct or substantially improve a building should consider a cost segregation study. It combines accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. This may allow you to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. And the potential benefits are now even greater due to enhancements to certain depreciation-related breaks under the TCJA. Contact us for help assessing the potential tax savings.
Businesses aren’t immune to tax identity theft
Tax identity theft may seem like a problem only for individuals. But increasingly businesses are becoming victims. Business tax identity theft occurs when a criminal uses information from a business (such as the Employer Identification Number) to obtain tax benefits or enable individual tax identity theft schemes. Here are some prevention tips: 1) Educate employees on how to spot tax fraud schemes. 2) Use secure methods to send W-2 forms to employees. 3) Implement risk management strategies designed to flag suspicious communications. Contact us to learn more.
Dig out your business plan to prepare for the year ahead
Now’s a good time to dig out and review your business plan. Doing so can help you assess changes to your company’s purpose and goals. You can also take a fresh look at your workforce and product or service offerings. In addition, revising your plan will allow you to analyze the state of your industry and perhaps identify new strategic opportunities. You can update the composition of your management team, too, and look for inefficiencies in your day-to-day operations. Last, you can generate financial projections for the coming year. Contact us for help.
Are you ready to expand to a second location?
Are you thinking about expanding your business to a second location? If so, make sure your company is truly ready. First ask whether you can duplicate the success of your current location at another one. Also look into how an expansion might create conflicts between the two locations. Explore the financial aspects, too. How will you fund the expansion? Can your cash flow keep up with building costs? And don’t overlook potential tax issues, especially when crossing state lines. We can help you fully assess the pluses and minuses of a potential business expansion.
Tax planning for investments gets more complicated
For investors, fall is a good time to review year-to-date gains and losses. Doing so can help you determine whether to buy or sell investments before year end to save taxes. You also need to consider the TCJA. While it didn’t change long-term capital gains rates, it did change the tax brackets. For 2018 through 2025, these brackets are no longer linked to the ordinary-income tax brackets for individuals. So, for example, you could be subject to the top long-term capital gains rate even if you aren’t subject to the top ordinary-income rate. Questions? Contact us.
Taxpayers can connect with the IRS on their phone using IRS2Go
Taxpayers who need tax help can simply pull out their phone and download the IRS mobile app. IRS2Go is available to use for free on any iOS or Android device.