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Tax considerations when adding a new partner at your business
- Apr 19, 2022
- By Dukhon Tax
- In Retirement
Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are sufficient so that the decrease…
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Establish a tax-favored retirement plan
- Mar 31, 2022
- By Dukhon Tax
- In Retirement
If your business doesn’t already have a retirement plan, now might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $61,000 for 2022. If you’re employed by…
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The Ins and Outs of IRAs
- Mar 08, 2022
- By Dukhon Tax
- In Affordable Care Act, Business, Retirement
Traditional IRAs and Roth IRAs have been around for decades and the rules surrounding them have changed many times. What hasn’t changed is that they can help you save for retirement on a tax-favored basis. Here’s an overview. Traditional IRAs You can make an annual deductible contribution to a traditional IRA if: You (and your spouse) aren’t active participants in employer-sponsored retirement…
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5 possible tax aspects of a parent moving into a nursing home
- Aug 10, 2021
- By Dukhon Tax
- In Business, Financial Planning, Retirement, Tax Planning, Tax Tips
If you have a parent entering a nursing home, you may not be thinking about taxes. But there are a number of possible tax implications. Here are five. 1. Long-term medical care The costs of qualified long-term care, including nursing home care, are deductible as medical expenses to the extent they, along with other medical expenses, exceed 7.5% of adjusted…
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Retiring soon? 4 tax issues you may face
- Jun 16, 2021
- By Dukhon Tax
- In Individual Tax, Retirement
If you’re getting ready to retire, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your retirement accounts. You generally must start taking withdrawals…
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New rules will soon require employers to annually disclose retirement income to employees
- Jan 15, 2020
- By Dukhon Tax
- In Business, Business Taxes, Retirement, Tax Advice, Tax Advisor, Tax Planning, Tax Tips
As you’ve probably heard, a new law was recently passed with a wide range of retirement plan changes for employers and individuals. One of the provisions of the SECURE Act involves a new requirement for employers that sponsor tax-favored defined contribution retirement plans that are subject to ERISA. Specifically, the law will require that the benefit statements sent to plan…
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Tax Developments: Summary of the 2019 SECURE Act provisions affecting business and individual taxpayers
- Jan 13, 2020
- By Dukhon Tax
- In Business, Business Taxes, Retirement, Tax Advice, Tax Advisor, Tax Planning, Tax Tips
On December 20, 2019, the SECURE Act, a new tax law included as part of the Further Consolidated Appropriations Act of 2020, was enacted. The “Setting Every Community Up for Retirement Enhancement” (SECURE) Act expands the ability for individuals to maximize their savings and makes simplifications to the qualified retirement system. This article outlines specific provisions of the act in…
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New law helps businesses make their employees’ retirement secure
- Jan 13, 2020
- By Dukhon Tax
- In Business, Business Taxes, Income Tax, Retirement, Tax Planning, Tax Tips
A significant law was recently passed that adds tax breaks and makes changes to employer-provided retirement plans. If your small business has a current plan for employees or if you’re thinking about adding one, you should familiarize yourself with the new rules. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law on December 20,…
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4 new law changes that may affect your retirement plan
- Jan 09, 2020
- By Dukhon Tax
- In Business, Business Taxes, Impact on Taxes, Income Tax, Retirement, Tax Planning, Tax Tips
If you save for retirement with an IRA or other plan, you’ll be interested to know that Congress recently passed a law that makes significant modifications to these accounts. The SECURE Act, which was signed into law on December 20, 2019, made these four changes. Change #1: The maximum age for making traditional IRA contributions is repealed. Before 2020, traditional…
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New law provides a variety of tax breaks to businesses and employers
- Dec 31, 2019
- By Dukhon Tax
- In Business, Business Taxes, Employment, Income Tax, Retirement, Tax Advice, Tax Advisor, Tax Deductions, Tax Planning, Tax Tips
While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax relief to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more…