A good education can be a stepping stone to a bright future, but it can also be a big financial burden. Whether it’s the first day of kindergarten at a private school or a second graduate degree, paying for an education has major tax consequences. But a little planning can help start things off right. Here are some tax and financial planning tips to keep in mind.
To make your business #CPAPOWERED, call today and let’s get started
To make your business #CPAPOWERED, call today and let’s get started
To make your business #CPAPOWERED, call today and let’s get started
To make your business #CPAPOWERED, call today and let’s get started
To make your business #CPAPOWERED, call today and let’s get started
Determining both business and personal goal\
Conducting an assessment of business and personal resources, and determining which areas have opportunities for improvement
Developing and implementing a strategy to help you achieve your...
To make your business #CPAPOWERED, call today and let’s get started
Before you begin the process of securing capital, you will need a written business plan that defines your business, management team, market, products and services, competitive advantage and the financial forecast and analysis that determines the proper amount and type of financing.
Cryptocurrencies are mainstream.
You can use bitcoin to buy far more than you would think. To see, try googling “What can I buy with bitcoin?” You will get more than 350,000 hits.
But using cryptocurrencies has federal income tax implications that may surprise you. With the price of bitcoin having gone through the roof (before its recent decline), and with increasing acceptance of bitcoin and other cryptocurrencies as forms of payment, the tax implications of using cryptocurrencies are a hot-button issue for the IRS.
The 2020 version of IRS Form 1040 asks whether you received, sold, sent, exchanged, or otherwise acquired—at any time during the year—any financial interest in any virtual currency. If you did, you are supposed to check the “Yes” box.
The fact that this question appears on page 1 of Form 1040, right below the lines for supplying taxpayer information such as your name and address, indicates that the...
Are you one step away from bankruptcy or breakthrough?
3 ways to ensure that your business is moving toward breakthrough and not bankruptcy:
Get your business in order.
1. Prepare financial statements
Your accountant should prepare a profit and loss statement and balance sheet for you at least quarterly.
When you receive your financial statements, take some time to review them. Review more detail if something doesn’t look right. Financial statements are good for measuring profitability, but also a good way to uncover theft.
What are you looking at? Do you know? Understanding what you should be looking for, making sure that you have enough money in the bank, confirming that you are making enough money and not losing money are all key to avoiding bankruptcy.
Did you take a coronavirus distribution (CVD) of up to a combined limit of $100,000 from one or more of your traditional IRAs in 2020?
You can recontribute the CVD amount(s) back into one or more traditional IRAs within three years of the withdrawal date(s). You treat each withdrawal and later recontribution within the three-year window as a federal-income-tax-free IRA rollover transaction. That’s the tax advantage.
The non-tax advantage is that there are no restrictions on how you can use CVD funds. You can use the money to pay bills and recontribute later—within the three-year window—when your financial situation permits. You can help out your adult kids now and recontribute later. Whatever.
Key point. The favorable tax treatment applies equally to CVDs taken from garden-variety traditional IRAs, SEP-IRAs, SIMPLE-IRAs, and employer retirement plans that allowed CVDs.
Unfortunately, you must put up with some potentially awkward interim tax consequences...
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