How many times have you heard, “you need to incorporate! You need to form a limited partnership (LP) or a limited liability company (LLC). It offers asset protection, and protection from creditors and lawsuits. It gives you better tax planning opportunities.” All of those statements are valid, however, a lot of people don’t know why. […]
March 2012 The IRS allows you to make a gift of $13,000 per year without gift tax consequences (subject to certain limitations). However, any gift in excess of that amount must be reported on a Form 709 (Gift Tax Return). Recently, the IRS has started an initiative to enforce the laws regarding unreported gifts, especially […]
You may be surprised to know that the provisions of your Will or Trust may not allow for control of your online accounts, such as Google, Facebook, Amazon, iTunes, etc. When you sign up for an online service, you accept the terms of the Agreement, which governs your use, even after your death. For example, […]
There has been some discussion regarding the designation of severance pay for tax purposes. Is it considered compensation? The Supreme Court of the United States is hearing a case to determine if a severance payment made to an employee upon termination of employment should be considered compensation subject to FICA and Medicare taxes. If found […]
“Gratuity included” may be a thing of the past for many restaurants. It is a common practice for a restaurant to add an 18% gratuity for parties over 6 people. Starting in January 2014, these automatic gratuities will be treated as wages paid by the restaurant to the server and subject to payroll taxes. According […]
Beginning June 1st, 2010, a business that extends credit is required to develop a plan to identify and prevent identity theft. The Federal Trade Commission (FTC) is responsible for enforcement of this rule. The requirement to develop a written plan applies to obvious institutions that extend credit, such as banks and credit card companies, but […]
A client recently asked about a business investment opportunity. My advice is always the same… before you make an investment, ask and answer the following questions: 1. Can I afford to lose the investment? Determine whether you can absorb the risk of the investment. In other words, if you invest $10,000, will it be a […]
Below is a brief bullet point summary of some issues to consider when planning for your minor children: 1. If you have minor children, the hardest question is who should raise your children in case of death? In other words, who should be named as guardian of your children? 2. In conjunction with item 1 […]
We know that many of you have children who are 18 years of age and may be away from home in their first year of college so we want to remind you of the importance of a Children’s Healthcare Power of Attorney. Once your child reaches 18, their doctor no longer has the authority to […]
Section 1101 of the Bipartisan Budget Act of 2015 changed the rules relating to the federal tax audit of partnerships. The new rules are effective for tax years beginning after December 31, 2017. For purposes of the law, it also applies to LLC’s taxed as partnerships for federal income tax purposes. The new rules replace […]