Author: tonynova
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Devastating impact of education costs
I worked on two personal income tax returns yesterday that serve as examples to further underscore the need for education finance reform. As an adviser I see plenty of these examples in working class families, these two just happen to be the latest. I know that my peers in the tax preparation industry will see…
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Negative interest rates: what does it mean?
How current news affects financial planning Much of the world has entered into a period of negative interest rates with little economic growth. Here in the United States Federal Reserve Chair Yellen still says that interest rates will rise (and she knows better than anyone) but remain at historically low levels this year. Some doubt…
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Too many chefs spoil the financial plan
The saying goes “Too many chefs spoil the broth”. I saw that concept play out twice this month with the tax liabilities of two small businesses. These otherwise successful entrepreneurs used too many financial advisers without designating one of them as the chief financial officer in charge. The results were nearly disastrous. Potential disaster #1: S-corp cash…
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What to do if your W-2 includes taxable health benefits
Summary: Employer-paid health benefits included as W-2 taxable wages is an accounting error that appears to flourish this year due to misinterpretation of tax laws surrounding the Affordable Care Act by small business accountants. The error financially hurts employees by overstating tax liability and reducing eligibility for various tax credits. Fix the error by talking to…
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An idea to improve telephone support in my 1 person practice
I’m trying a new experiment to improve service to callers who do not reach me by phone. For telephone calls that I miss and the caller does not leave a message (typically about 3-5 calls per day), I am using the desktop version of Verizon Messenger (because my business calls are forwarded to the cell…
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Why are tax attorneys so expensive?
The Wall Street Journal ran an article this week about the number of attorneys billing at $1,000 to $1,500 per hour. It turns out that there were more tax attorneys in the list than any other type. Why? In my own practice, the primary consideration in setting a fee is an estimate of the likely…
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Three benefits of operating as an LLC
If you are self-employed, there may be at least three benefits of operating your business as a Limited Liability Company (LLC). In most states the cost is roughly about $200 to form a LLC and about $100 per year to maintain it. The potential benefits are: Liability protection – This is the usual reason, to…
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My QuickBooks ProAdvisor certification for 2016
QB ProAdvisor I just completed the 2016 re-certification for QuickBooks Online ProAdvisor. It was a 4 hour webinar on Sunday, then 5 self-study modules that take about 6 hours, then 5 online exams of 15 questions each, The five tests were easier this year than last year because I had taken some years off from…
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Is the Health Insurance Marketplace working?
The number of people who enrolled for Obamacare through the individual Health Insurance Marketplace increased to 12.7 million in 2016 compared to 11.7 million in 2015 and 8 million in 2014. There is growth in the number covered but this growth is not impressive especially when we consider that the number without coverage is growing at a faster pace.…
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Health care law changes the way we look at personal financial security
February 1, 2016 marked a milestone in the field of tax and financial planning for middle income Americans. The way that we will look at our health care planning and financial liabilities begins to shift today and perhaps forever. Yesterday the open enrollment season for the Obamacare health insurance exchanges closed leaving about 1 in…