Weekly Tax Brief
Should you make a “charitable IRA rollover” in 2016?
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- Published: 26 July 2016 26 July 2016
Last year a break valued by many charitably inclined retirees was made permanent: the charitable IRA rollover. If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions.
Read more: Should you make a “charitable IRA rollover” in 2016?
To deduct business losses, you may have to prove “material participation”
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- Published: 22 July 2016 22 July 2016
You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years.
Read more: To deduct business losses, you may have to prove “material participation”
There’s still time for homeowners to save with green tax credits
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- Published: 20 July 2016 20 July 2016
The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). So, you still have time to save both energy and taxes by making these eco-friendly investments.
Read more: There’s still time for homeowners to save with green tax credits
3 mutual fund tax hazards to watch out for
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- Published: 11 July 2016 11 July 2016
Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering such investments, beware of these three tax hazards:
Awards of RSUs can provide tax deferral opportunity
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- Published: 30 June 2016 30 June 2016
Executives and other key employees are often compensated with more than just salary, fringe benefits and bonuses: They may also be awarded stock-based compensation, such as restricted stock or stock options. Another form that’s becoming more common is restricted stock units (RSUs). If RSUs are part of your compensation package, be sure you understand the tax consequences — and a valuable tax deferral opportunity.
Read more: Awards of RSUs can provide tax deferral opportunity
Throw a company picnic for employees this summer and enjoy larger deductions
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- Published: 22 June 2016 22 June 2016
Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses.
Read more: Throw a company picnic for employees this summer and enjoy larger deductions
Finding the right tax-advantaged account to fund your health care expenses
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- Published: 15 June 2016 15 June 2016
With health care costs continuing to climb, tax-friendly ways to pay for these expenses are more attractive than ever. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) all provide opportunities for tax-advantaged funding of health care expenses. But what’s the difference between these three accounts? Here’s an overview:
Read more: Finding the right tax-advantaged account to fund your health care expenses
Combine business travel and a family vacation without losing tax benefits
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- Published: 13 June 2016 13 June 2016
Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you’re not careful, you could lose the tax benefits of business travel.
Read more: Combine business travel and a family vacation without losing tax benefits
Stock market volatility can cut tax on a Roth IRA conversion
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- Published: 06 June 2016 06 June 2016
This year’s stock market volatility can be unnerving, but if you have a traditional IRA, this volatility may provide a valuable opportunity: It can allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.
Read more: Stock market volatility can cut tax on a Roth IRA conversion
How many employees does your business have for ACA purposes?
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- Published: 24 May 2016 24 May 2016
It seems like a simple question: How many full-time workers does your business employ? But, when it comes to the Affordable Care Act (ACA), the answer can be complicated.
The number of workers you employ determines whether your organization is an applicable large employer (ALE). Just because your business isn’t an ALE one year doesn’t mean it won’t be the next year.
Read more: How many employees does your business have for ACA purposes?