Three simple steps to tax nirvana

Posted Leave a commentPosted in Financial Planning, Tax Planning, Taxes, Wealth Management

Taxes are perceived differently by each individual even though the overall set of chaotic rules is the same for all of us. Yet when it comes to dealing with that chaos in a manner that leads to peace and prosperity, the process always involves the same three steps: Resolve past problems. Old issues don’t go […]

Benefit of 401(k) tax credit for small business that start 401(k) plans

Posted Leave a commentPosted in 401(k), Retirement, Small Business, Tax Planning

My brother John Novak, a well established 401(k) expert, shared some calculations that he made for his own clients illustrating the impact of the SECURE act tax credit for small businesses that want to start a 401(k) plan. This is the first analysis of this type that I’ve seen using “real life” 401(k) plan fees […]

Update on Gig Workers

Posted Leave a commentPosted in News and Politics, Payroll, Small Business, Tax Planning

The evolving saga of “employee vs contractor”, from the small business employer’s perspective, means that you should  revisit the conversation for business planning purposes now. Background In case you’ve been so engrossed with other headlines that you haven’t read any business news: the world of independent contractors, so-called “gig workers” is facing rapid and dramatic […]

Fast paced change brings 2020 opportunities to small businesses

Posted Leave a commentPosted in Accounting, Financial Planning, Small Business, Tax Planning

After some tweeking (thanks to my peers for the crowd-sourced feedback!) this is the version of the email message that will be used this week: Dear _ : This past year brought more changes for small business owners than any other year in the past generation. This means new opportunities to save money but also […]

Taxes for ministers: Summary of federal income tax planning issues

Posted Leave a commentPosted in Payroll, Self-employed, Tax Planning, Taxes

Planning the federal income tax treatment for ministers1 must consider several topics that are unique to ministers. Employee status A minister is considered an employee under the common law rules and yet payments for services as a minister are considered income from self employment pursuant to IRC §§ 1402(c ) and 3121(b)(8). This is the […]

Address review – October 2019

Posted Leave a commentPosted in Legal, New Jersey, Pennsylvania, Self-employed, Tax Planning

For all of my adult life I’ve had more than one address. Occasionally government entities and agencies have launched investigations or made complaints about my address. I suspect this is politically motivated but I have no proof. Those government actions have accelerated lately and I anticipate more aggressive prosecutions in the future. The tension is […]

‘Standard’ Tax Advice

Posted Leave a commentPosted in Social Media, Tax Planning, Taxes

Tax accountant, tax planner, tax preparer: What’s the difference? Tax accountants, like other professionals, spend time crowdsourcing information and advice among peers in limited-access online social media groups. The advantages of this crowd sourcing are obvious: fast, free, draw upon wide range of experiences, etc. The disadvantages are also obvious: you often get what you […]

Update on nondisclosure of charities’ donor rule

Posted Leave a commentPosted in Cannabis, Nonprofit, Tax Planning

Revenue Procedure 2018-38 remains controversial. Lawmakers (mostly Democrats) are concerned that it could encourage the flow of dark money into the tax-exempt sector. Their concern is valid. I know of private foundations that have already reorganized as public charities to take advantage of the secrecy rule change for their own benefit. No doubt, this rule […]