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Secure Your Business Partnership with a Buy-Sell Agreement 150 150 Katie

Secure Your Business Partnership with a Buy-Sell Agreement

Buying a business with co-owners or already sharing the reins? A buy-sell agreement isn’t just a smart move–it’s essential. It gives you a more flexible ownership stake, prevents unwanted changes in ownership, and avoids potential IRS complications.  The basics There are two main types of buy-sell agreements: cross-purchase and redemption agreements (also known as liquidation…

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6 Smart Ways to Earn Income Without Paying Taxes 850 500 Katie

6 Smart Ways to Earn Income Without Paying Taxes

Believe it or not, there are effective strategies to generate income and gains without triggering federal income tax. Here are some tips to keep your money in your pocket, tax-free: Roth IRAs  Roth IRAs are among the most powerful tools for generating tax-free income. Unlike traditional IRAs, qualified withdrawals from a Roth IRA are exempt…

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Your Need-to-Know Tax Guide for Inherited IRAs 850 500 Katie

Your Need-to-Know Tax Guide for Inherited IRAs

A 2019 change to tax law ended the “stretch IRAs” strategy for most inherited IRAs. This means that beneficiaries now have 10 years to withdraw all of the funds. Since then, there’s been a lot of confusion about required minimum distributions (RMDs). Thankfully, the IRS has now issued final regulations clarifying the “10-year rule” for…

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Tax Implications of Disability Income 850 500 Katie

Tax Implications of Disability Income

If you are one of the many Americans who rely on disability benefits, you might be wondering how that income is taxed. The short answer is it depends on the type of disability income you receive and your overall earnings. Taxable Disability Income The key factor is who paid for the benefit. When the income…

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Understanding Taxes on Real Estate Gains 850 500 Katie

Understanding Taxes on Real Estate Gains

If you own real estate held for over a year and sell it for a profit, you typically face capital gains tax. This applies even to indirect ownership passed through entities like LLCs, partnerships, or S corporations. You can expect to pay the standard 15% or 20% federal income tax rate for long-term capital gains.…

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Cash or Accrual Accounting: Which is Right for Your Business? 850 500 Katie

Cash or Accrual Accounting: Which is Right for Your Business?

Your business can choose between cash or accrual accounting for tax purposes. While the cash method can provide certain tax advantages to those that qualify, the accrual method might be a better fit for some businesses.  To maximize tax savings, you need to weigh both methods before deciding on one for your business.  Small business…

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Six Tax Issues to Consider During a Divorce 850 500 Katie

Six Tax Issues to Consider During a Divorce

Divorce is a complex legal process, both financially and emotionally. Taxes are likely the farthest thing from your mind. But, you need to keep in mind the tax implications and consider seeking professional assistance to minimize your tax bill and navigate the separation process more smoothly.  Here are six issues to keep top of mind…

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Does a FAST Fit into Your Estate Plan? 850 500 Katie

Does a FAST Fit into Your Estate Plan?

Traditional estate planning often focuses on minimizing gift and estate taxes while protecting your assets from creditors or lawsuits. While these are important considerations, many people also hope to create a lasting legacy for their family. Dovetailing with the “technical” goals of your estate plan, such “aspirational” goals might include preparing your children or grandchildren…

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Tax Treatment of Business Website Expenses 850 500 Katie

Tax Treatment of Business Website Expenses

Most businesses today rely on websites, but despite their widespread use, the IRS hasn’t provided formal guidelines for deducting their costs. However, some guidance can be gleaned from existing tax laws that offer business taxpayers insights into the proper treatment of website cost deductions.  Tax implications of hardware versus software The hardware costs you might…

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Self-Directed IRAs: A Double-Edged Sword 850 500 Katie

Self-Directed IRAs: A Double-Edged Sword

Traditional and Roth IRAs are already powerful tools for estate planning, but a “self-directed” IRA can take their benefits to the next level. They can allow you to invest in alternative assets that might offer higher returns but they also come with their own set of risks that could lead to unfavorable tax consequences.  It’s…

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Maximize Your Estate Planning with the Roth 401(k) Contributions 850 500 Katie

Maximize Your Estate Planning with the Roth 401(k) Contributions

When deciding on contributions to your 401(k) plan, you might wonder whether it’s better to choose pre-tax (traditional) contributions or after-tax (Roth) contributions.  The best choice depends on your current and anticipated future tax circumstances, as well as estate planning goals. Traditional vs. Roth 401(k)s The main difference between a traditional and a Roth 401(k)…

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Tax Considerations When You Decide to Close a Business 850 500 Katie

Tax Considerations When You Decide to Close a Business

Shuttering your business is a significant milestone, often marked by a mix of relief and uncertainty. If you’ve opted to wind down operations on your business, it’s essential to tie up certain loose ends, especially tax-related ones.  Return filings Businesses must file specific federal income tax returns to finalize their situation. The type of return…

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