If you own a small business with no employees other than your spouse, a solo 401(k) plan could be a smart choice for your retirement planning. It’s also a good option for those who are self-employed or business owners looking to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan. Also known as […]

With 2025 on the horizon, the Social Security wage base is rising. The Social Security Administration announced an increase to $176,100 for 2025, up from $168,600 in 2024. Earnings above this threshold won’t be subject to Social Security tax. Wages and self-employment income above this amount aren’t subject to Social Security tax. If your business […]

As 2024 draws to a close, it’s a great time to consider your financial and tax strategies. One smart approach is to make cash gifts before December 31, which can reduce your potential estate taxes while sharing generosity with loved ones. Current tax laws allow individuals to gift a specific amount each year without incurring […]

Tax planning is just one aspect of estate planning, and often not the most significant for many families. The primary aim of estate planning is to protect and provide for your family’s financial security with tax savings being a part of the overall strategy. Asset protection is another critical component and a spendthrift trust can […]

When you’re setting up partnership and LLC operating agreements–including for multi-member LLCs, which are treated as partnerships for tax purposes, there are a few key issues to include in your agreement to keep your business in line with federal tax law. Spell out guaranteed payments to partners A guaranteed payment is one made by a […]

Timing plays a pivotal role in financial reporting. Under accrual-basis accounting, the end of the accounting period acts as a “cutoff” for recognizing revenue and expenses. However, some companies may be tempted to manipulate timing–especially at the end of the year–to boost financial results or reduce taxes. Understanding end-of-period cutoffs  According to U.S. Generally Accepted […]

In 2023, EVs accounted for 7.6% of the US vehicle market, according to Kelley Blue Book, up from 5.9% in 2022.  As electric vehicles (EVs) continue to grow in popularity, incentives like the Clean Vehicle Tax Credit are helping more people make the switch. Created under the Inflation Reduction Act, this $7,500 credit applies to […]

With the arrival of fall, it’s the perfect time to take action and possibly lower your tax bill for this year and 2025.  First, you need to decide whether you’ll take the standard deduction or itemize for 2024. You might skip itemizing, given the 2024 standard deduction amounts are relatively high–$29,200 for joint filers, $14,600 […]

With the third estimated tax payment behind us, it’s time for small businesses to focus on year-end tax planning.  Proactive steps now can help lower your taxes for this year and next. Common strategies include deferring income and accelerating deductions, or bunching deductible expenses to maximize their value.  However, if you expect to be in […]