As everyone knows, the cost of higher education goes up each year. While many of us are already familiar with 529 plans and education IRAs, many realize that contributions to these plans, do not generate any tax deduction for the donor. One way used by some businesses and self employed individuals is to employ their children in the business. That...
A college education. Retirement. What do these major life events have in common? One shared characteristic is that each comes with a price tag. Here’s another: If you have school-age kids, you might be facing the challenge of having to decide which goal to save for. They’re both important. So how do you make the choice? Here are some suggestions...
Tags: collegeretirement
Category: Taxes
Do you know anybody who’s tripled his money investing in the IPO (initial public offering) of a hotshot new company? It can happen. And many investors thought the recent Facebook IPO was a way to quick riches. Yet the truth is, most investors don’t make money playing IPOs. It’s just that no one brags when they lose money. Nonetheless, investors...
When your best friend views your nest egg as a source of start-up funds for his latest business venture, or your nephew hits you up for a car loan, your first impulse may be to reach into your bank account to help. But it’s a fact that loans to family and friends often end up straining both finances and relationships....
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Category: Taxes
Keep repairs separate from major improvements. Ordinary repairs and maintenance on business equipment and buildings are deductible business expenses. Improvements which materially add to the value of the property or significantly prolong its useful life must be depreciated over a period of years. To avoid losing tax deductions for repairs and maintenance, make major improvements completely apart from repairs and...
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Category: Taxes
Business owners focus a lot of attention on building better products. When their products are hot, the company does well, despite other shortcomings. Certainly, new and better products are essential, but focusing on building a better business — one that readily adapts to change and quickly responds to crisis may be even more important. How can you build a better...
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Category: AccountingBusiness
If your primary home is “short” sold or foreclosed and the lender receives less than the total amount of the outstanding loan, you can also expect that amount of debt cancellation to be reported to you and the IRS. But special rules allow you to exclude up to $2 million in cancellation income in many circumstances. You will again need...
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Category: Taxes
Buying rare and precious coins can be an exciting hobby and, for some, a lucrative investment. Unfortunately, it’s also a business that’s rife with potential for con artists. As always, it’s wise to proceed with caution. Following a few simple guidelines can offer protection from unethical sellers. * Research, research, research. Know what you’re buying. Carefully study the characteristics of...
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Category: AccountingTaxes