Weekly Tax Brief

2 ACA taxes that may apply to your exec comp

Details: Published: 19 October 2017 19 October 2017

If you’re an executive or other key employee, you might be rewarded for your contributions to your company’s success with compensation such as restricted stock, stock options or nonqualified deferred compensation (NQDC). Tax planning for these forms of “exec comp,” however, is generally more complicated than for salaries, bonuses and traditional employee benefits.

Accelerate your retirement savings with a cash balance plan

Details: Published: 16 October 2017 16 October 2017

Business owners may not be able to set aside as much as they’d like in tax-advantaged retirement plans. Typically, they’re older and more highly compensated than their employees, but restrictions on contributions to 401(k) and profit-sharing plans can hamper retirement-planning efforts. One solution may be a cash balance plan.

“Bunching” medical expenses will be a tax-smart strategy for many in 2017

Details: Published: 03 October 2017 03 October 2017

Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only if they exceed that floor (typically a specific percentage of your income). One example is the medical expense deduction.

Why you should boost your 401(k) contribution rate between now and year end

Details: Published: 19 September 2017 19 September 2017

One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step.

2017 Q4 tax calendar: Key deadlines for businesses and other employers

Details: Published: 12 September 2017 12 September 2017

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2017.

Watch out for potential tax pitfalls of donating real estate to charity

Details: Published: 06 September 2017 06 September 2017

Charitable giving allows you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. For example, if you’ve held the property for more than one year, you generally will be able to deduct its full fair market value and avoid any capital gains tax you’d owe if you sold the property. There are, however, potential tax pitfalls you must watch out for:

The ABCs of the tax deduction for educator expenses

Details: Published: 29 August 2017 29 August 2017

At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s common for teachers to pay for some classroom supplies out of pocket, and the tax code provides a special break that makes it a little easier for these educators to deduct some of their expenses.

Yes, you can undo a Roth IRA conversion

Details: Published: 23 August 2017 23 August 2017

Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover that you would have been better off if you hadn’t converted it? Fortunately, it’s possible to undo a Roth IRA conversion, using a “recharacterization.”

Put your audit in reverse to save sales and use tax

Details: Published: 15 August 2017 15 August 2017

It’s a safe bet that state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — so slim that many businesses use reverse audits to find overpayments so they can seek refunds.

Will Congress revive expired tax breaks?

Details: Published: 08 August 2017 08 August 2017

Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on.

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