Taxation Insights

“Nonprobate assets” bypass more traditional estate planning vehicles, such as a will or revocable trust. Instead, they’re transferred to family members through beneficiary designations.

To handle their finances and file taxes, most small business owners must decide between two accounting methods: cash or accrual. This decision determines how and when income and expenses are reported, which can have a major effect on tax obligations and cash flow.

Tax Tip: Make sure you chose the correct ownership structure when buying a vacation home.

Tax Tip: Without proper planning, there’s a risk that the government will confiscate your guns or that the executor of your estate, your trustees or your beneficiaries will inadvertently commit a felony. Plan ahead by considering creating a gun trust and appoint a trustee who has experience on gun laws and safety.

Business owners either established or just starting up, should maintain accurate records for income and expenses. Carefully documenting expenses is essential to claiming all eligible tax deductions. Having good standing records can help defend amounts reported on tax returns in case of an IRS audit or court challenge.

The value of an effective mentorship can make a difference in personal and professional growth of employees. Overall effecting the performance of individuals involved, increasing productivity, and fostering self-development through encouragement in the expansion of professional expertise.

Tax Tip: Tax credits are more valuable than a tax deduction, however they are not unlimited. The general business credit can limit the aggregate value of tax credits.

Tax returns are due but once a year. However, paying taxes — through withholding from taxpayer wages, estimated tax payments, or both — is a year-round activity. That’s why it’s a good idea for taxpayers to review their tax payments regularly throughout the year to ensure they’re as accurate as possible.