Why You Should Keep Home Improvement Records
Here are some situations when having home improvement records could save taxes:
Lake Wylie Tax Services Staff
The Future of U.S. Tax Policy: Key Issues For 2024 Presidential Candidates
The early Presidential debates for the 2024 election cycle have begun, and one topic that’s expected to take center stage is the future of the U.S. tax code. Tax policy questions loom large, and the 46th person to serve as United States President – remember, Grover Cleveland was elected twice, non-consecutively – will have to grapple with some major tax issues.
Foremost among these are the expiring individual and business tax regulations brought about by the Tax Cuts and Jobs Act (TCJA) and the growing deficits and national debt.
Continue reading →Find Lost Money
Unclaimed property refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for a period of one year or longer (depending upon state law). It is estimated that one out of ten Americans have unclaimed property or money floating around somewhere.
Partners May Not Be Employees
If your partnership has been treating you and other partners as employees of a disregarded entity owned by the partnership so the partners can participate in employee benefit plans and receive other employee benefits, you’d better read this. Tax regulations (1) issued by the IRS take aim at this practice and were written to put a stop to it.
The Hidden Costs of Sloppy Bookkeeping
A recent Stanford study reviewed the aftermath of the Enron collapse and the repercussions to Enron’s accounting firm’s former clients. The primary trend they identified was when former clients issued accounting restatements or revisions because of less-than-accurate bookkeeping; there was an increase in the salary demands at the affected companies.
The takeaway is that risky or sloppy financial reporting can drive up a company’s labor costs. Labor is usually one of a company’s biggest cost centers. The Stanford researchers report detailed that a company with “significantly above-average-quality reporting can cut the cost of wages, taxes, benefits, and other employee-related expenses by $3 million.” This applies to larger institutions, but the same formula would apply to companies with less revenue and head count.
Many small businesses do their books or hire inexperienced staff to cut costs. While this may seem like a cash saving in the short term, the long-term results can add up to a substantial amount.
Continue reading →Financial Aspects of Elder Care Planning
When we’re young and vibrant, we think that we’ll never grow old. We enjoy each day never thinking there might come a day when we’ll need help to get by. When we think of elder care, we might picture a nonagenarian in a wheelchair living in a nursing home telling stories to the compassionate caregiver sitting by her side. In truth, there is far more to the story than that.
Elder care planning has never been more important or more challenging than it is today. While generations once lived together in the family home for life, the empty nest dominates today’s world. Parents whose children have flown the coop to create their own households remain in their homes or move to a place where the sun shines 300 days a year. Many move to be close to their grandchildren but establish their own living space. Most enjoy their newfound freedom from the busy-ness of youth but it can eventually create challenges for them and their families.
Continue reading →Financial Planning for All Ages
Are you wondering where the world economy is going and how your personal finances will stand up to the changes? If so, you are not alone. Part of the fun of being on this planet is planning for the future even when it’s not clear what will happen tomorrow or next week.
If you’re old enough to know who Gilligan is without watching syndicated reruns, then you’ve already been through a variety of economic conditions. Inflation, recession, economic booms and busts…today’s shifts are no shock to you. However, if you consider anything by Aerosmith, Savage Garden, and most “boy bands” to be an “oldie”, then today’s economic conditions may be new to you and you’re probably wondering what’s going on.
Continue reading →Planning for Your Retirement – New Wrinkles from the SECURE 2.0 Act
In 2019 Congress passed legislation named the Setting Every Community Up for Retirement Enhancement Act – shortened to the SECURE Act – that included a number of retirement plan changes and enhancements. In late December, 2022, the SECURE 2.0 Act was passed and signed by President Biden. Many of the provisions of SECURE 2.0 were designed to encourage more Americans to save more for their retirement years and make it easier to do so. Some of these changes could impact your retirement plan strategy. Here are some of the highlights of SECURE 2.0:
Tax Breaks for Grandparents
More and more individuals who thought their child-rearing days were over are now raising their grandchildren. It is estimated that 6.5 million children in the United States currently live with at least one grandparent, accounting for approximately 9% of all children nationally and more than half of those not living with their parents.
Another study found that the number of grandchildren living with their grandparents has increased 50% over the past ten years. Grandparents in this challenging situation should be aware that a variety of tax breaks may be available to ease the financial burden of becoming primary caregivers for grandchildren.
Continue reading →Tax Implications of Student Loan Forgiveness
If your student loan debt is forgiven, what are the tax consequences? The Internal Revenue Code Section 61, says that all kinds of income, including earned, found, or won, is income for tax purposes unless specifically excluded. Taking that to extremes, if you find, for example, a $20 bill on the sidewalk while out for your morning walk that is technically income.