May 6, 2024 / by Brett Hess / Tax
If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for […]
Read more
Accounting | Insurance | Financial Planning| Call us at 301.698.0795
Pay attention to the tax rules if you turn a hobby into a business
May 7, 2024 / by Brett Hess / Tax
Many people dream of turning a hobby into a regular business. Perhaps you enjoy boating and would like to open a charter fishing business. Or maybe you’d like to turn your sewing or photography skills into an income-producing business. You probably won’t have any tax headaches if your new business is profitable over a certain […]
Read more
Don’t have a tax-favored retirement plan? Set one up now
May 6, 2024 / by Brett Hess / Tax
If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for […]
Read more
Taxes when you sell an appreciated vacation home
May 1, 2024 / by Brett Hess / Tax
Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the […]
Read more
Watch out for “income in respect of a decedent” issues when receiving an inheritance
April 24, 2024 / by Brett Hess / Tax
Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If […]
Read more
The tax deadline is almost here: File for an extension if you’re not ready
April 4, 2024 / by Brett Hess / Tax
The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 15 to […]
Read more
Business owners, your financial statements are trying to tell you something
April 2, 2024 / by Brett Hess / Tax
Business owners are commonly and rightfully urged to regularly generate financial statements in compliance with Generally Accepted Accounting Principles (GAAP). One reason why is external users of financial statements, such as lenders and investors, place greater trust in financial reporting done under the rigorous standards of GAAP. But that’s not the only reason. GAAP-compliant financial statements […]
Read more
Update on retirement account required minimum distributions
March 27, 2024 / by Brett Hess / Tax
If you have a tax-favored retirement account, including a traditional IRA, you’ll become exposed to the federal income tax required minimum distribution (RMD) rules after reaching a certain age. If you inherit a tax-favored retirement account, including a traditional or Roth IRA, you’ll also have to deal with these rules. Specifically, you’ll have to: 1) […]
Read more
Beware of a stealth tax on Social Security benefits
March 12, 2024 / by Brett Hess / Tax
Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax. While the truth about the federal income tax bite on Social […]
Read more
New option for unused funds in a 529 college savings plan
March 4, 2024 / by Brett Hess / Tax
With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a […]
Read more
Taking your spouse on a business trip? Can you write off the costs?
February 22, 2024 / by Brett Hess / Tax
A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having […]
Read more