Month: March 2016
-
SEP IRA or Solo 401(k)?
If you are self-employed, is it best to use a Simplified Employee Pension Individual Retirement Account (SEP IRA) or a one person 401(k) plan? The answer depends on a range of factors that should become clear in a short discussion of your objectives. Both are easy and inexpensive methods to save on current taxes and…
-
What is the value of a financial adviser?
One of the surprise lessons of this tax season was learning how many sophisticated and successful clients are paying more than five figures annually for what essentially amount to picking mutual funds. Many of the cases I saw while preparing tax returns were fees paid through Charles Schwab for funds offered in retirement plan accounts…
-
Help for last-minute tax filers
These final 20 day of tax season can be stressful on taxpayers and tax preparers. I will work at least 14 hours a day in order to meet my own work deadlines and contribute to the workload of other tax preparers. Yet it makes sense for a young accounting practice to reserve time for new…
-
New Jersey business drain continues
New Jersey faces a serious problem with business owners leaving the state. Some have called it the “millionaire drain”. I prefer to call it the “job creator drain”. I am among those small business owners who have given up NJ residency, although I still hold out hope for recovery and the possibility of returning someday.…
-
Section 105 medical plan for self-employed’s spouse
Is anybody still marketing Section 105 medical reimbursement plans to self-employed people? IRS made it a point to highlight the restrictions in recent years and it seems that most self-employed people and their advisers got the message. But today I received a call from a guy who says that some reputable firms including an ex-IRS lawyer are…
-
Venmo fees
I set up a Venmo account and understand that it is a popular way for young internet users to transfer money online. Venmo charges 3% to send money from a credit card and some debit cards with a credit card logo (like mine). Other methods are cheaper or free. Of the dozens of online banking…
-
The most common small business tax screw-up
Perhaps the most common small business screw-up that generates tax penalties? IRS requires that when you make business expense payments to individuals (as opposed to corporations), you must additionally send them a form 1099-MISC unless an exception applies. My simplified chart is intended to make it easy to identify the exceptions. In reality, it is…
-
A dark day for Christianity
Today we have compelling reasons to be ashamed of elected officials claiming Christian values. Yesterday a group of Christian clergy connected with Moral Movement Tennessee staged a demonstration at the Tennessee state capital. The clergy object to Tennessee state lawmakers claiming Christian values but blocking expansion of health care for the state’s poor under the Affordable Care…
-
Supreme Court hears employee benefit case Wednesday
This week the Supreme Court hears Little Sisters of the Poor v. Burwell, a landmark case challenging the Department of Health and Human Services contraceptive mandate under the Affordable Care Act. The plaintiff’s belief that abortion coverage under a contract with a third party health insurance company depends on the religious beliefs is so bizarre…
-
Homeowner tax credits for energy efficient upgrades
Have you overlooked a small tax credit? The IRS offers two types of tax credits to homeowners in 2015 and 2016: the Residential Energy Efficiency Property Credit and the Nonbusiness Energy Property Credit. The first applies only to solar and renewable energy systems and is not discussed in this article. The second type of tax…