Can the investment interest expense deduction save you tax on your 2018 return? It’s for interest on debt used to buy assets held for investment, and you must pass some hurdles to benefit. First, you must itemize, which may no longer benefit you because of the higher standard deduction. Second, interest incurred to produce tax-exempt
Ellenbogen
Jan 30, 2019
Investment interest expense is still deductible, but that doesn’t necessarily mean you’ll benefit
- By Ellenbogen
- Deductions, Taxes
- 0 Comments
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Jan 29, 2019
Hastily choosing an executor can lead to problems after your death
- By Ellenbogen
- Estate
- 0 Comments
Choosing the right executor (or “personal representative”) is critical to the smooth administration of an estate. Yet many people treat this decision as an afterthought. An executor’s duties may include taking inventory of the estate’s assets, filing the estate’s tax returns and paying its taxes, and handling creditors’ claims. A family member is a common
Jan 24, 2019
Charitable donations: Unraveling the mystery of motivation
- By Ellenbogen
- Non-Profit
- 0 Comments
Americans support charities for a variety of financial, emotional and social reasons, and some of them aren’t so obvious. For example, wealthy donors may be motivated by not only tax and asset protection considerations, but also a desire to limit what they leave to their children to prevent a “burden of wealth.” Younger donors often
Jan 23, 2019
Higher mileage rate may mean larger tax deductions for business miles in 2019
- By Ellenbogen
- Business, Deductions
- 0 Comments
A higher IRS mileage rate means larger tax deductions for business miles in 2019. The optional standard mileage rate used to calculate the deductible costs of operating an auto for business has increased by 3.5 cents, to 58 cents per mile. The mileage rate comes into play when businesses don’t want to keep track of
Jan 22, 2019
What will your marginal income tax rate be?
- By Ellenbogen
- Taxes
- 0 Comments
While the Tax Cuts and Jobs Act (TCJA) generally reduced individual tax rates for 2018 through 2025, some taxpayers could see their taxes go up due to reductions or eliminations of certain tax breaks — and, in some cases, due to their filing status. But some may see additional tax savings due to their filing
Jan 17, 2019
Are your volunteers putting your nonprofit at risk?
- By Ellenbogen
- Non-Profit
- 0 Comments
Not-for-profits that direct and benefit from volunteers can be held accountable if those individuals are harmed or harm others on the job. Your organization needs to take steps to limit this risk, including screening volunteer candidates. Positions that carry greater risks, such as work involving children and other vulnerable populations, or access to cash donations,
Jan 16, 2019
Stop receivables fraud before it starts
- By Ellenbogen
- Business, Fraud
- 0 Comments
From invoices and payments to discounts and write-offs, many business transactions are recorded to accounts receivable. This makes receivables a popular fraud target. But your business doesn’t have to become a victim. Common schemes Receivables fraud occurs when dishonest employees divert customer payments for their personal use. They use various methods, including: Lapping. This is
Jan 15, 2019
You may be able to save more for retirement in 2019
- By Ellenbogen
- Retirement, Taxes
- 0 Comments
Retirement plan contribution limits are indexed for inflation, and many have gone up for 2019, giving you opportunities to increase your retirement savings: Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans: $19,000 (up from $18,500) Contributions to defined contribution plans: $56,000 (up from $55,000) Contributions to SIMPLEs: $13,000 (up from $12,500) Contributions to IRAs:
Jan 10, 2019
How experts use tax returns to find hidden assets
- By Ellenbogen
- Business, Fraud
- 0 Comments
Business owners engaged in fraudulent activities often try to manipulate their companies’ financial statements. Fortunately for fraud experts, business owners’ tax returns aren’t as easy to misrepresent. Certain items on an owner’s Form 1040 can reveal hidden assets and income sources, particularly lines reporting income from wages, tax-exempt interest income, retirement plan distributions and refunds.
Jan 9, 2019
Is there still time to pay 2018 bonuses and deduct them on your 2018 return?
- By Ellenbogen
- Business, Deductions
- 0 Comments
There aren’t too many things businesses can do after a year ends to reduce tax liability for that year. But you might be able to pay employee bonuses for 2018 in 2019 and still deduct them on your 2018 tax return. To be eligible for this favorable tax treatment, you must be an accrual-basis taxpayer