Lots of the old tax rules have changed in the last few years. If you haven't reviewed and adapted, you are likely paying your rich Uncle Sam too much. The Tax Cut and Jobs Act (TCJA) combined the amounts for standard deductions and exemptions into one number. The Act also eliminated deductions entirely. This effectively removed itemized deductions for many tax payers since the standard deduction/exemption for 2020 is $24,800 (married filing jointly).
We will not mince words here: getting divorced can be a long, drawn-out, and complicated process — both personally and professionally. But since we are not therapists, we will be focusing on how to handle your taxes when both parties have a stake in a small business. Keep reading for advice on future tax implications, retirement accounts, and more from our experts at Core Group.
Due to the pandemic, it’s likely that you or someone you know works remotely, at least temporarily. Here are a few factors to keep in mind when filing your taxes, potential problems that may arise, and relief opportunities that may be available to you. When in doubt, our experts at Core Group can help you devise the tax strategy that’s right for you.
Meet Penelope, a fictional, full-time freelancer who offices from her small (but cozy!) home. Since her home office takes up about 25% of her home, she’s been deducting 25% of her maintenance costs as business expenditures for the past five years. But now she’s ready to sell her home. What tax implications can she expect to face? Does the IRS now classify 25% of her profit as business income? Here’s what to expect when selling a home with a home office.
As a child, you fear the monster in your closet. There are dark shadows peeking out of the cracked door. As soon as you turn on the light you see what you thought was a big one eyed monster was actually just your winter coat. The fear of the unknown does not disappear when you become an adult. Now you fear your finances and tax season, which without guidance, can be just as dark and scary.
Everyone says you have to see the Grand Canyon before you die. It is a life changing experience and photos do not do it justice. You hire a travel agent to book the trip for you and your spouse. Would you trust the travel agent to write your itinerary without ever meeting with you? The next thing you know you have tickets to take a helicopter tour around the Grand Canyon which is perfect except for your spouse’s fear of helicopters. It is important that you are a part of the planning process because you could have quickly informed the agent that it might be better to see the canyon from the observation deck instead.
Strategy, according to Mr. Webster, is “a careful plan or method”. In business, a strategy is generally how you achieve your goals. So you may have a marketing strategy to obtain new customers, or a hiring strategy to source new employees. Strategy, no matter what words you use to define it, is forward thinking. Sadly, many business owners never think of their business strategically, but remain reactive. If you fall in the reactive category, I suggest you stop reading this and pick up a copy of The E-Myth by Michael Gerber.
Everyone has been focused on the SBA loan provisions in the CARES Act, and are overlooking several other tax savings opportunities in the law. In this article we'll dive into the tax-free distributions from qualified retirement accounts.
Lots of questions arise during discussions about choosing the best IRA, regular or Roth. In general, your investment strategy should consider taxes (you can read more about that in this article), and that’s easy to overlook. You definitely don’t want tax to be the proverbial tail that wags the dog, but smart tax planning makes sure you keep more of what you earn.