Month: June 2016
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When are you planning to die?
The most useful information to have when doing estate and tax planning is the death of the owner. Of course we don’t know and so an effective plan must incorporate provisions for a range of possibilities. This immediately limits the effective strategies and partially explains the complexity of trust and estate practice. Even so, it…
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COBRA coverage can not be extended
Health insurance under COBRA can not be extended since it’s maximum duration is prescribed by law. Short term gap coverage may be available for that purpose depending on your state of residence. Check http://freedombenefits.net/topic/temporary-health-insurance.html
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The goals of compensation and benefits planning
It occurred to me over this weekend that over more than three decades I’ve produced hundreds of recordings, articles, columns and radio spots on various technical aspects of compensation and employee benefits planning, but that I’ve never talked about the basic primary goals that we all share in this work. There are four primary…
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Tax planning for same sex couples
In 2013 the Supreme Court ruled on a case that effectively put same-sex couples on equal tax and financial footing with other couples. I summarized the financial planning impact in this June 27 2013 blog post. Five significant financial planning effects of the legal change were: 1) transfer of property to a spouse during one’s…
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Trends in U.S. economic migration
I’ve absorbed a flurry of input this week from news articles, NJTV, a symposium presentation and social media discussion all on the topic of economic migration trends within the U.S. The NJCPA has taken up this issue as it relates the the “wealth drain” in New Jersey. The pattern that is emerging is that the majority…
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How to copy Trump’s financial success
Comedian Steve Martin did a routine in the late 1970s on “how to be a millionaire”. A million dollars seemed to be a lot more money back then and a worthy goal for many. The January 21, 1978 skit on Saturday Night Live was performed for all of America: “You can be a millionaire and never pay taxes!…
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Investing in an economic collapse
Billionaire investor George Soros is in the news again for returning to investing word after a long hiatus. He is known for his skill in spotting risk and betting against overpriced markets. His moves are generally seen as predicting a Hillary win, a negative performance of U.S. stocks, and are and significantly gloomier worldwide economic…
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Why should you pay more tax than Donald Trump?
“Politics aside, the real question here is why do you pay more tax than Donald Trump and what do you plan to do about it?” Donald Trump further agitated critics recently by refusing to reveal his income tax details, instead hinting only that he pays as little as possible. ABC News drew attention to the issue.…
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IRS scam education
The Federal Trade Commission has a useful infographic to educate consumers on the risks of scammers pretending to be IRS collectors. It helps clarify that IRS does not call people suddenly and unexpectedly and attempt to scare them into paying by gift card or electronic transfer immediately to avoid arrest.
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Small payments by nonprofit LLC for summer events
Community organizations often sponsor seasonal events that require the use of short term labor. When volunteer labor is not available, there may be tax implications of paid services. Even though the dollar amount per worker is small, the total cost can be a significant portion of the organization’s overall budget. A single-member LLC is managed…