3 mutual fund tax hazards to watch out for

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:

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Awards of RSUs can provide tax deferral opportunity

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

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

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

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

 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?

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?

How summer day camp can save you taxes

 

Although the kids might still be in school for a few more weeks, summer day camp is rapidly approaching for many families. If yours is among them, did you know that sending your child to day camp might make you eligible for a tax credit?

Read more: How summer day camp can save you taxes

Putting your home on the market? Understand the tax consequences of a sale

As the school year draws to a close and the days lengthen, you may be one of the many homeowners who are getting ready to put their home on the market. After all, in many locales, summer is the best time of year to sell a home. But it’s important to think not only about the potential profit (or loss) from a sale, but also about the tax consequences.

Read more: Putting your home on the market? Understand the tax consequences of a sale

QSB stock offers 2 valuable tax benefits

By investing in qualified small business (QSB) stock, you can diversify your portfolio and enjoy two valuable tax benefits:

Read more: QSB stock offers 2 valuable tax benefits

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