IRA owners and beneficiaries who have reached age 70 ½ are permitted to make donations to IRS-approved public charities directly out of their IRAs. These so-called qualified charitable distributions, or QCD‘s are federal-income-tax-free to you, but you get no charitable deduction on your tax return. But,that is fine because the tax-free treatment of QCDs [...]
Many taxpayers make adjustments to their investment portfolio near year-end to take profits, to recognize tax losses to reallocate their assets, and for various other reasons. When making purchases of mutual funds near year-end, however, you should be wary of actually purchasing a tax liability. This is a danger: mutual funds must pay out their [...]
Higher income taxpayers beware. There is a new surtax to contend with. Originating as a component of 2010 health care legislation and first effective in 2013, the 3.8% net investment income tax (3.8% NIIT) is assessed on the lesser of net investment income (NII) or modified adjusted gross income (MAGI) above specific thresholds. The MAGI [...]
Receiving Payments from Customers in QuickBooks Depending on the situation, there’s more than one way to record a payment in QuickBooks. Here are your options. There are undoubtedly some QuickBooks tasks that are more enjoyable than others. It’s no fun paying bills, for example, and making collection calls on unpaid invoices can be downright [...]
When choosing an entity for your business, keep in mind there are opportunities to use an S corporation to hold stock in other corporation to hold stock in other corporations, but not the stock of the S corporations. If any corporation acquires the S corporation’s stock, that S corporation becomes a C corporation, which is [...]
If you are unable to borrow from a bank or other outside source, your qualified retirement plan may be a good option. IRS guidelines permit a limited amount of borrowing from corporate qualified retirement plans, including 401(k) plans. In general, borrowings are limited to 50% of the participant’s account balance up to a maximum of [...]