Complete Financial Services, Inc

Employer: Complete Financial Services, Inc. Job title: Senior Accountant Job duties: responsible for financial statement analysis and preparation; use GAAP and professional accounting rules for accounts reconciliation and analysis; prepare and file tax return; prepare audit response and research tax issues; review IRS tax procedures and tax laws and prepare tax reporting guidelines. Job requirements: Master’s degree in accounting, accountancy or closely related field and two years of related work experience as an accountant, or staff accountant. Apply: Complete Financial Services, Inc., 7101 N Cicero Ave, Suite 108, Lincolnwood, IL 60712 Attn: HR

As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Until Congress passes tax reform legislation, these tips should help many tax clients. The following article highlights the opportunities and challenges that affect year-end planning for 2017 and includes two checklists of actions that can cut taxes for clients for this year and in the years to come. The first checklist describes actions individuals can take to save taxes. The second checklist describes actions businesses and business owners can

If you’re like most people, you want to get the lowest interest rate that you can find for your mortgage loan. But how is your interest rate determined? That can be difficult to figure out for even the savviest of mortgage shoppers. Knowing what factors determine your mortgage interest rate can help you better prepare for the homebuying process and for negotiating your mortgage loan. How much will you pay in interest on your mortgage loan? View the infographic Your lender knows how your interest rate gets determined, and we think you should, too. Our Explore Interest Rates tool lets

The IRS has provided real estate owners with a juicy tax deduction. The de minimis safe harbor election is an annual tax return election that permits a taxpayer to deduct, as ordinary and necessary business expenses, purchases of items that would normally have to be capitalized. Yet this advantageous election is often overlooked by taxpayers. This article will discuss the de minimis safe harbor election and its requirements. For years the question has been: expense or capitalize? Many taxpayers would capitalize an item based on cost; the larger the cost, the more likely capitalization. Under the finalized tangible property

On Sept. 27, 2017, the Trump administration and Republican congressional leaders issued a nine-page outline on tax reform titled a “Unified Framework for Fixing Our Broken Tax Code.” At the start of the year we were, of course, supposed to have tax reform enacted by September. Instead, we have had a one-page outline followed now by a nine-page outline. The outline does not provide much more detail than we had before from the administration and Congress, and leaves much still to be worked out in the tax-writing committees of Congress. However, it does provide the areas in which the administration

From Uber to Dogwalker.com, there are tons of ways to make some money on the side while pursuing your dream job - or just digging out of debt. If you're hoping to pick up some extra cash with a side gig this year, here's what you need to keep in mind on the tax side. 1. Income is income. It doesn't matter if your extra income is from driving a car or trading stocks, income is reportable unless it's otherwise excluded. 2. Understand the difference between a real business and just a fun way to make money. Income may be

Payroll problems may be the fastest way to lose talented employees. According to a new survey from The Workforce Institute at Kronos Incorporated, about half of the American workforce (49 percent) will begin searching for a new job after experiencing just TWO ISSUES with their paycheck! This alarming rate highlights the importance of having a reliable and accurate payroll service provider. The survey discovered the following: Little patience for problems: nearly half of American workers (49 percent) will seek new employment after just two payroll mistakes, such as being paid late or incorrectly.Approximately one in four employees – 24 percent

A review of strategies to maximize the tax benefits from charitable giving should be a fundamental part of year-end tax planning for taxpayers and their advisors. For wealthier taxpayers, this might mean complex strategies that work in tandem with estate planning. For others, it might simply mean accelerating deductions to the current year if tax rates are constant or decreasing, but possibly deferring deductions if tax rates are increasing. In either case, there are additional factors for taxpayers who have Individual Retirement Accounts (IRA) to consider now that uncertainty over the use of IRAs for charitable giving has been

Tax season has kicked off, which means you’ll be speaking to your accountant again. But did you know that accountants can do so much more for your business than filing taxes? In fact, for independent business owners and freelancers, it’s highly valuable to work with accountants throughout the entire year. Here are three ways you and your business can prosper by working with accountants beyond March and April. Finding New Revenue Opportunities As a business owner, you’re in charge of so many different aspects of a company, from marketing to operations and HR. While basic bookkeeping may seem like a

"Choose your tax return preparer carefully because you entrust them with your private financial information that needs to be protected," said IRS Commissioner John Koskinen. "Most preparers provide high-quality service but we run across cases each year where unscrupulous preparers steal from their clients and misfile their taxes." Choosing Return Preparers Carefully It is important to choose carefully when hiring an individual or firm to prepare a tax return. Well-intentioned taxpayers can be misled by preparers who don’t understand taxes or who mislead people into taking credits or deductions they aren’t entitled to in order to increase their fee. Every

1) State Sales Taxes Congress offers itemizers the choice between deducting the state income taxes or state sales taxes they paid. You choose whichever saves you the most money. And, you don’t need a wheelbarrow full of receipts. The IRS has tables that show how much residents of various states can deduct, based on their income and state and local sales tax rates. But the tables aren't the last word. If you purchased a vehicle, boat or airplane, you may add the sales tax you paid on that big-ticket item to the amount shown in the IRS table for your

A federal judge in Texas issued a nationwide injunction on Tuesday against an Obama administration regulation expanding by millions the number of workers who would be eligible for time-and-a-half overtime pay. The regulation was scheduled to take effect on Dec. 1. It would raise the salary limit below which workers automatically qualified for overtime pay to $47,476 from $23,660.The judge, Amos L. Mazzant III of the Eastern District of Texas, ruled that the Obama administration had exceeded its authority by raising the overtime salary limit so significantly. The ruling was hailed by business groups who argued the new rules would

Defer your income until 2017, but be wary of your income levels in both years. It’s always advantageous to push any income you can from one year into the next; after all, there is a time value to taxes you can pay next year instead of now. This year, however, the concept of deferral is even more meaningful. For 2017, the top rate on ordinary income — things like wages, interest income, and business income — is 39.6%. Should President-elect Trump’s proposal become law, however, the top rate on ordinary income in 2017 would drop to 33%. Thus, deferring a

1. Accelerate Deductions and Defer Income It sometimes makes sense to accelerate deductions and defer income. There are plenty of income items and expenses you may be able to control. Consider deferring bonuses, consulting income or self-employment income. On the deduction side, you may be able to accelerate state and local income taxes, interest payments and real estate taxes. 2. Bunch Itemized Deductions Many expenses can be deducted only if they exceed a certain percentage of your adjusted gross income (AGI). Bunching itemized deductible expenses into one year can help you exceed these AGI floors. Consider scheduling your costly non-urgent

1. Nearly half of millennials aren’t managing their money well enough to prioritize retirement savings. The investment survey conducted by Franklin Templeton points out that “four out of 10 millennials said that they don’t have a retirement income strategy in place.” They’re paying off student loans or trying to stay out of credit card debt. Many are trying to make ends meet through side hustles and entrepreneurial gigs (not always by choice). The little money they have left over is being allocated to have some fun, such as traveling and having meaningful experiences with friends. 2. Building an investment portfolio

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Use your client's tax return for more than paying taxes: The 1040 form can spark a broad tax planning discussion with clients, according to CNBC. A line-by-line review, for example, can bring attention to key decisions regarding estate taxes, making the most of workplace benefits and maximizing deductions. – CNBC Transform your parents' medical bills into tax-free retirement savings: These tips using medical expenses may help clients looking after aging parents cut taxes for their elders, according to MarketWatch. The IRS is allowing taxpayers aged 65

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. 3 strategies for delaying taxable IRA distributions: It's unavoidable in most cases: Taxpayers reaching the age of 70-1/2 must begin taking withdrawals on their IRA accounts. These strategies, however, show how clients who have a considerable amount of money in an IRA, but who also have enough income from other sources to live on, can delay taking distributions, according to CBS Moneywatch. One approach invests some of an IRA into a qualified longevity annuity contract while another requires working longer for an employer that provides a

As a small-business owner, you probably thrive in a DIY environment; but the more hats you wear, the less you’ll accomplish successfully. Accounting is one of the most important areas for keeping your company profitable. As you start out and your company grows, software can only take you so far. Accountants can help your company move forward. Below are reasons why your business needs an accountant in all stages of your growth. 1. Your business is in the startup phase There are many things to think about when you’re just starting out: Business structureBusiness planBank accountsGovernment regulationsLocationFinancing You might think

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. A powerful secret to increase the value of your Roth conversion: If a client's recently converted Roth loses value, there's still time to undo the conversion to save money on the taxes, according to Kiplinger. Clients have until mid-October after the conversion to undo part or all of it through a technique known as recharacterization. – Kiplinger 12 no-tax and low-tax retirement plan distributions: Clients who are retirement account beneficiaries can rely on this checklist to know if a distribution will be treated as ordinary income

Get tax-free growth potential, tax-free withdrawals, no required distributions, and more. "We believe that most people should consider a Roth IRA,” says Ken Hevert, vice president of retirement products at Fidelity. “And that’s either by contributing to one or converting to one. Besides tax-free withdrawals, a Roth IRA also offers flexibility, doesn’t require distributions when you reach a certain age, and can benefit your heirs." Before we delve into nine key benefits of a Roth IRA, here’s an important note: Not everyone can contribute to a Roth IRA, because of IRS-imposed income limits. But even if your income is over

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. How retirement savers are stretching their IRAs: the QLAC archipelago: Retirees may opt to buy a Qualified Longevity Annuity Contract within their IRAs and employer-sponsored retirement plans to defer the required minimum distributions until they reach the age of 85, according to The Street. This option is recommended for tax-sensitive retirees who turn 70 1/2, the age when they have to start taking RMDs. However, the tax bill waiting for them when they turn 85 may be significantly high. — The Street Turning business obstacles into

Private School Tuition and School Uniforms The cost of private school or parochial school tuition is not deductible. However, the child care component costs of private school tuition for children under 13 may qualify the taxpayer for a tax credit. School uniforms are also not deductible even if they are required. Before and After School Care Can Be Deducted For a child under the age of 13, the cost of before or after school care may qualify the taxpayer for a tax credit if it is a qualifying expense. Tax Deductions for School Fundraisers are Limited You are required to

Looking for a gift to give after all those June weddings? How about some solid tax advice for the newlyweds? Taxes may not be top-of-mind for most new couples, but there are some important tax issues they should be aware of, so the IRS put together the following set of tips. New names? Whether one of the spouses takes the other’s name or not, the names and Social Securities on their tax return must match their Social Security Administration records – so if any names are changed, they’ll need to report it to the SSA with Form SS-5, Application

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Mid-year 2016: An investment reality check: The middle of the year is a good time for an investment reality check that can improve the tax efficiency of a client's portfolio, according to The Register-Star. This includes looking at investments that generate interest or produce short-term capital gains, and dividing assets strategically among taxable, tax-deferred and tax-exempt accounts. -- The Register-Star What’s the best corporate structure to protect small business owners? Choosing the right corporate structure determines a company's tax liability, according to Money. The options for

According to a recent analysis by the research company Gallup, which based its information on data collected by the Federal Reserve, the average household has $7,828 in revolving credit card debt. Meanwhile, Americans are also juggling mortgages, auto loans, student debt and personal loans. In fact, earlier this year, the U.S. Department of Education released a report noting that more than 40 percent of Americans with federal student loans are behind on payments. So what's the best method for paying off each kind of loan? Experts recommend the following approaches: Your Mortgage If you're paying your mortgage off slowly, month

Early withdrawals can help retirees stay in a low tax bracket throughout retirement. Every year at tax season, people get distressed over how much they owe in taxes due to required minimum distributions from their individual retirement accounts. At that point it’s usually too late to substantially alter the bill, which is why proactive tax planning is so important. Conventional wisdom says you shouldn’t touch IRA money until you’re required by law to do so, at age 70½. We advise a different approach. By taking careful distributions from IRAs beginning at age 59½, when the early-withdrawal penalty no longer applies,

With more and more people expected to be self-employed and working from home, knowing the ins and outs of the home office deduction can make all the difference between a refund – or an audit. The Illinois CPA Society offered a number of helpful tips to help home-business-owners (and their advisors) be sure they’re getting everything back that they can. (A slideshow version of this story is available here.) Business-only One of the most important things to be sure of before you try to claim the deduction is that some part of the home has to be exclusively and regularly

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about. 7 ways you can earn tax-free income: Clients may want to contribute to a Roth IRA and a Health Savings Account for tax free income, according to the Motley Fool. Selling a home may not trigger a capital gains tax because of the exemption amounting to $250,000 for singles and $500,000 for joint filers. Investors can choose municipal bonds for tax-free yields and hold their stocks for the long term, as no capital gains tax will be charged for those in the 10 percent or

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. IRA, 401(k), 529: What's the best tax-sheltered account type? Despite an occasional congressional nod to simplifying tax-sheltered savings, investors still have to find their way through a dizzying maze of tax-advantaged investment wrappers, according to this article from Morningstar. There are multiple types of IRAs, company-retirement plans and college-savings accounts, as a few examples, all with advantages and disadvantages. Each has its own tax treatment, its own rules over who can contribute and how much and its own policies on distributions. Pay close attention to the

What’s better than a salary increase? For many employees, the addition of an equivalent fringe benefit may be preferable, due to the tax consequences. For example, if an employee is in the 25% federal tax bracket and receives a $10,000 raise, he or she takes home $7,500 (not counting other taxes). But a tax-free benefit of $10,000 is actually worth $10,000.There are more than a dozen statutory tax-free fringe benefits available for employees who participate in employer-based programs. Your small business clients may be contemplating use or expansion of one or more of these valuable fringe benefits. To provide more

It may seem like a minor expense but the cost of that latte and sandwich will add up quickly. Hardly a month goes by without some report or another stating that Americans aren't saving enough for retirement. It's a sad state of affairs, but it is also one that doesn't have to be inevitable, at least not if you are smart. There are easy ways to jump-start the savings process. Here are some ideas that will generate savings of an additional $10,000 in six months. Quit smoking ($2,000). As if the health benefits weren't already obvious, the monetary savings could

With the Internal Revenue Service’s recent release of final regulations on Roth distributions, it might be a good time to summarize the several changes that have been made either through legislation, IRS action, or court decisions affecting qualified retirement plans over the last year or so. In Notice 2014-34, the IRS announced that, effective Jan. 1, 2015, the taxable and non-taxable portions of distributions from 401(k), 403(b) and 457(b) plans could be directed into separate accounts. This change would permit the taxpayer to roll only the taxable account back into an employer plan of a new employer and then do

Environmentally-conscious taxpayers can now choose from a wider variety of vehicles powered solely or partially by electric power, including a new all-electric model by Tesla. In addition to the ecological benefits, purchasers of “plug-in vehicles” may also benefit from a generous tax credit, authorized by Section 30D of the tax code. The IRS recently updated the list of vehicles eligible for the credit. The 30D credit, which is claimed on Form 8936 (Qualified Plug-in Electric Drive Motor Vehicle Credit), is equal to the sum of (1) $2,500 plus (2) for a vehicle that draws propulsion energy from a battery with

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about. How to mine for yield with MLPs: Investors with a high tolerance for risk may want to consider master limited partnership, which offer favorable yields and tax benefits, according to U.S. News & World Report. While MLPs can be set up in various industries, the vast majority of the nearly 150 in business today specialize in oil and gas. MLPs are appropriate for long-term investors interested in attractive total returns, including a high level of current income. -- U.S. News and World Report 8 age-related

Due to fluctuating market conditions, even savvy investors can face losses on stock sales. Alert: Beware of the "wash sale" rule. This rule says you can't deduct the loss from the sale of securities if you buy "substantially identical" securities within 30 days before or after the loss sale. The disallowed loss is added to your basis in the new stock. Here are three perfectly legal ways to beat the IRS at its own game. Let's say you acquired 100 shares of Blue Chip stock for $50 a share. Now the stock has dropped to $40 a share. If you

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. 8 tax tips you need to know before moving abroad: U.S. citizens living overseas must still file federal tax returns if they meet IRS filing requirements, according to the Huffington Post. The strategies in this article can help to enlighten clients who are not aware of the potential U.S. expat tax issues they could face when moving abroad. -- Huffington Post Examining estate and gift issues in cross-border tax planning: Taxes are a hot topic for spouses who each have lived on one side of an

Along with establishing a good work ethic and building time and financial management skills, a summer job also means learning about the obligatory duty of paying taxes. To help navigate the tax process, we have put together a list of six tax tips to be aware of when a child prepares for a summer job. We hope these tips will help you and your child plan ahead and know what to expect as they begin their summer job. 1. Understand the Rules for Claiming DependentsYou may be wondering, since your child has a summer job, if you will still be

Active traders qualifying for trader tax status (TTS) maximize these deductions in the following ways: 1. Home-office (HO) deductionsUse the square footage or rooms method to allocate every expense of your home including mortgage interest, real estate taxes, rent, utilities, repairs and maintenance, insurance and depreciation. The IRS limits use of HO expenses by requiring business income to offset the deduction, except for the mortgage interest and real estate tax portion. Link the HO Form 8829 to TTS trading gains or transfer some to Schedule C to unlock the HO deduction. If you have trading losses, carry over unallowed HO

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Give your graduate cash — a lifetime of it: A Roth IRA can be a gift that clients can give their loved ones who will be graduating from college, according to Bloomberg. Unlike a traditional IRA, which is created with pre-tax money, a Roth IRA is funded with after-tax money, allowing the recipient to tap the funds easily. Also, a Roth IRA offers tax-free growth through compounding while withdrawals are nontaxable in retirement. "It will cause [your child] to think fondly of you when they're in

Are you an employer? If so, you’ve got a major challenge to accomplish in the next few months. Brief Summary of New Fair Labor Standards Act Rule: Starting December 1, if you have a salaried worker making under $46,467 per year, you will either need to give them a pay increase, cut them to hourly, or start paying them overtime when they work more than 40 hours per week. With the time left before December 1, we advise business owners to prepare by following the following five tips. Examine Current Pay and Classifications. One of the first steps for employers

The U.S. Department of Labor has finalized sweeping changes to the Fair Labor Standards Act (FLSA) overtime rules, extending protections to millions U.S. workers. The rule has the potential to impact the exempt status of a wide variety of positions in virtually every industry. The rule, proposed by the DOL last year, focuses primarily on updating the salary and compensation levels needed for workers to be exempt. The changes double the salary threshold for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $913 per week, or $47,476 annually. Under the new rules,

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Roth conversions: Divide & conquer: Clients looking to do Roth conversions should plan on making several of them for greater tax benefits, according toBusiness Management Daily. Typically, clients should divide things up based on asset classes, instead of sinking the entire boatload into a single Roth IRA. --Business Management Daily 5 carryovers to remember when preparing 2016 taxes: Clients may want to comb through their 2015 income tax returns for hidden gems, including unused losses, deductions, or tax credits that must be carried forward to 2016,

Whether you have $100, $1,000 or $100,000 to give to charity, a newly permanent charitable giving tax break can help you save taxes while helping your favorite charity. It’s called the IRA charitable rollover, and it lets you, once you reach 70 1/2, direct gifts of up to $100,000 a year from your Individual Retirement Account directly to a public operating charity. “I’m a fan, and not because you can shelter $100,000,” says Morris Armstrong, an enrolled agent in Danbury, Conn. Why then? Because the IRA charitable rollover works for the little guy too; it lets the average person have

Many Individual Retirement Account holders die without having consumed the account balances; therefore, beneficiaries will be entitled to the balance. These distributions are reportable as ordinary income. Also, the account’s value is part of the decedent’s gross estate, making these IRAs subject to income and estate taxes upon death. Here are some of the rules and options available to IRA beneficiaries: Surviving SpouseA surviving spouse can rollover the deceased’s account to his or her own IRA. Often, a surviving spouse will elect this option to defer income taxes. A spouse can opt for a partial distribution rolling over the account

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Selling a vacation home? Plan ahead now or pay the taxman later: Selling that getaway home is not quite like selling a primary residence as far as the IRS is concerned, according to Realtor.com. Here’s a guide to what your client needs to know to avoid sticker shock when the tax bill comes. -- Realtor.comETF picks for a retirement portfolio: Clients who want average income from their investments with moderate capital appreciation may want to include municipal bonds in their portfolios, according to an article from

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. What triggers extra taxes on Baby Boomers? Retirees should expect that their Social Security retirement benefits could be subject to income tax, and are advised to consider voluntary withholding if the benefits will be taxed, according to The Detroit Free Press. They are also advised to watch out for the Net Investment Income Tax when selling stocks or property, and to consider donating to charity directly from their IRA when they turn 70-1/2, as the donation will be counted towards their required minimum distribution. Medical and

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Deducting investment management fees: Clients are entitled to deduct investment management fees charged by their financial advisors, according to The Monterey Herald. However, these fees cannot be deducted if investors are subject to the Alternative Minimum Tax. Retirement savers are advised to pay these fees outside their retirement plans to make the fees tax-deductible, while those who are already retired should pay these fees inside the account so the payment will be excluded from their taxable income. -- The Monterey Herald How Roth IRAs lower your

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Five ways millennials can fatten their tax refunds: Millennials need to make sure they deduct their student loan interest on their tax returns to boost the tax refund they expect to receive, according to The Washington Post. They also should check whether they qualify for the American Opportunity Tax Credit and other education-related tax breaks, as well as the Earned Income Tax Credit. Contributions to qualifying retirement accounts as well as moving and other job-related expenses are also tax-deductible, so they should make sure they include

A successful exit will have five ingredients, and advisory professionals can help educate clients about each of these: 1. A written exit plan based on the owner’s objectives. Having a written exit plan is critical to allowing business owners to remain in control of the process. We talk to business owners every day who say, "I want to die at my desk." That’s OK, but what happens to your business and your family when that day comes? We see others who say they only want to work from 9 to noon, but they’re not willing to give over major control

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Popular IRS charity tax break can be valuable—for those who know how to use it: Clients who are retired can maximize their tax savings by making the most of a tax break that allows them to donate some of their IRA assets directly to a qualified charity, according to The Wall Street Journal. A law passed by Congress last year made the tax break permanent and retroactive to January 2015. The provision counts the donation as part of their required minimum distribution and exempts it from

Only 5 percent of business owners generally need a business valuation due to death, divorce or some other triggering event or situation, but all business owners can benefit from understanding and growing the value of their business. Unfortunately, many business owners spend more time working with an investment advisor trying to grow their 401(k) retirement account than they do working on growing their business, even though 50 percent to 80 percent of an owner’s net worth is in the business. To help business owners treat their business like an investment, we have developed a Know & Grow valuation service that

Paying down debt and buying a home often make it difficult to save for retirement. Many workers are saving for retirement in individual retirement accounts. At the end of 2014, $7.4 trillion was invested in IRAs, up from 2.6 trillion in 2000, according to the Investment Company Institute. IRAs may prove even more essential for younger generations of workers who change jobs often and too quickly to become vested in employer-sponsored 401(k) plans. However, funding an IRA can be difficult to balance with other competing financial goals. These goals may include paying down debt, buying a home or funding workplace

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. How to unwind a Roth conversion: Clients who converted their traditional IRA into a Roth account last year have until October 18 this year to undo their decision and recover the money they lost in the process, according to Kiplinger. Certain timing rules apply, naturally. Those who already filed their tax return for 2015 and decided to undo their IRA conversion will need to amend the return to retrieve the tax payments for the converted amount. -- Kiplinger 5 tax tips for Millennials: Millennials are advised

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Avoid these 10 traps with your taxable account: A taxable account offers liquidity that clients can't find in IRAs and other retirement plans, according to Morningstar. Clients can minimize or circumvent the tax bite from these investments by avoiding 10 possible traps. -- Morningstar Crazy sounding tax deductions that are still legit: Taxpayers have claimed some unusual expenses that were dismissed by the IRS, but later upheld in Tax Court, according to Forbes. Some of these unusual tax deductions were the cosmetic surgery costs claimed by

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. 10 financial perks of growing older: Clients are entitled to certain tax privileges when they reach old age, according to U.S. News & World Report. Aside from a higher standard deduction, seniors may be entitled to property or school tax deferrals and exemptions. Tax filing requirements will also be less stringent for older people. -- U.S. News & World Report Should you tax-loss harvest in your IRA? Tax-loss harvesting is a strategy to recoup losses from a market decline, but it is not a good option

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. What student loan borrowers need to know this tax season: Single clients with student loans qualify for up to $2,500 in interest deduction, while married couples may also claim the same amount if they file joint returns, according to Fox Business. The deduction disappears if married couples opt to file separately, but joint filers can expect income-driven repayment plans to be too costly. Student loan borrowers will also be eligible to claim a credit of up to $2,500 for qualified education expenses if these expenses exceed

If you have college, medical or first-home bills, you may be able to take penalty-free IRA distributions. If you withdraw money from your individual retirement account before age 59 1/2, you will generally have to pay a 10 percent early withdrawal penalty in addition to income tax on the amount withdrawn. This means a $5,000 withdrawal taken by a mid-career worker in the 25 percent tax bracket would result in $1,750 in taxes and penalties. But there are a variety of ways to avoid the IRA early withdrawal penalty if you meet specific criteria: Turn age 59 1/2. Once you

Investors often get confused by these two important measures of business success. One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a crucial skill in knowing what's happening with a particular business.Understanding accounting incomeIn order to determine income using generally accepted accounting principles, you take the revenue that a company recognizes for a specific period and subtract the cost of the goods or services that went toward bringing in that revenue. Further expenses such as research and development, depreciation and

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about. No receipts for IRS? Key tax case says they're optional: Clients may not need to present receipts when claiming tax deductions if they can prove those tax-deductible expenses using some other means, according to Forbes. A recent tax case overturned an IRS decision to disapprove a taxpayer's deduction claims because of a lack of receipts may have set the precedent for others to file without documentation. An appeals court argued that the IRS should allow the deductions if taxpayers can present "other credible evidence" to

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Millennial marriage tax penalty: The student loan interest tax deduction has a gotcha for the hitched: The Millennial marriage penalty is partly to blame for the relatively low number of young people getting married, according to Forbes. It's because remaining single allows them to claim up to $2,500 in student loan interest deduction. When they get married and file joint returns, the total deduction for the couple will still be $2,500, so if they both have student loans, one of them will lose the tax break.

The 400K Yacht Let's say a taxpayer owns a “boat chartering” business, but his prior year tax returns show losses for the business year after year. He insists on writing off the boat again this year. What do you do? Whether or not a boat qualifies as a business asset will depend on a number of facts and circumstances that are used by the IRS to determine if a business is a business or in fact a hobby. In order to determine this, the taxpayer needs to go through the "nine factors," prescribed by the IRS, with his accountant. If

Retirees can eliminate much of their stresses when it comes to retirement planning by avoiding six mistakes that many have made or will make. Mistake no. 1: Not taking advantage of the retirement-planning tools available Retirement accounts like IRAs or 401(k)s are vital and important sources of income for retirees, and many employers provide accounts for their employees to invest in. Working individuals of all ages should establish these accounts and regularly contribute to them. Most employers will even match the funds in your 401(k), which is free money that can go to your retirement so it's wise to contribute

A large number of important tax changes go into effect this year for businesses. Many were ushered in by the Protecting Americans from Tax Hikes (PATH) Act of 2015, although legislation enacted earlier in 2015 and in 2014 also contributed a fair share. Still other changes are the result of various administrative pronouncements by IRS. Business changes include: Enhancements for Sec. 179 expensing: For tax years beginning in 2014: (1) the dollar limitation on the expensing deduction under Code Sec. 179 is $500,000; and (2) the investment-based reduction in the dollar limitation begins to take effect when property placed in

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. The worst winning strategy: Some investments with higher returns will also come with higher tax bills, according to Motley Fool. For example, clients may be better off with a buy-and-hold strategy that guarantees a 14% return annually over two decades than a trading strategy that produces a guaranteed 20% return over the same period. It's because returns generated by a buy-and-hold strategy are subject to a lower rate compared with those from the trading strategy. -- Motley Fool Save taxes by being a tax contrarian: Clients

Our weekly roundup of tax-related investment strategies and news our clients may be thinking about! The ABCs of ETF tax-efficiency; Don’t forget ETFs aren’t exempt: Advisors can help clients determine which ETFs avoid taxable distributions, and which ones don't, by providing an overview that breaks down the oft-touted efficiencies of these investments, according to Barron's. Clients need to understand that some ETFs distribute capital gains, which could mean a tax liability. There also are ETFs that need to sell as part of rebalancing, incurring capital gains that have to be distributed. -- Barron's Taxes on inherited mutual funds: From a

The latest available figures reveal that the average American spends more than twice as much for government as for food. That disheartening statistic underscores just how costly a mistake it is to think of federal income taxes as simply a once-a-year affliction caused by the need to grapple with Form 1040. Instead, what you ought to do is crank taxes into your financial planning throughout the year. You might be pleasantly surprised to discover the scores of tax-saving opportunities that most individuals overlook each year. The savings can add up to thousands of dollars. Effective tax planning. The first step

Tax Day comes around just once a year (it’s April 18 in 2016) but staying on top of taxes can feel like a year-round job. Whether you file on your own or use a tax professional, you need to know what your filing obligations might be and how your choices can affect your bottom line when it comes to money. Here are the 10 Things You Absolutely Need To Know About Taxes: 1. You may not have to file a federal income tax return. Not every person who receives income during the calendar year has to file a federal income

If you withdraw funds from an IRA before age 59 1/2 , you're generally assessed a 10% penalty tax on the taxable portion of the early withdrawal, in addition to the regular income tax liability, unless a special exception applies. The list of exceptions in the tax code includes the following: 1. Distributions made to a beneficiary or estate on account of the IRA owner's death 2. Distributions made due to disability 3. Distributions made as part of a series of substantially equal periodic payments 4. Distributions made due to an IRS levy against the account 5. Distributions that are

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. How to get a big tax write off while doing a good deed: Contributing to donor-advised funds is a smart year-end move for taxpayers who receive a windfall and need to have a bigger deduction to reduce their tax bill, according to MarketWatch. Such a strategy enables taxpayers to make the deposit before the end of the year and claim a tax deduction for the current year but make the actual donation to a charitable organization next year. Those who received substantial money this year should

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. 3 stealth taxes that can kill your capital gains: Realizing capital gains can be a good strategy for retired clients to get preferential tax rates, but it could backfire by boosting their income and subsequently subjecting a bigger portion of their Social Security benefits to income tax, according to MarketWatch. Clients' future Medicare premiums also could increase because of realized gains. And an increase in income due to realized capital gains could also activate the Alternative Minimum Tax, which could cost retirees benefits. – MarketWatch Tax-free

Not Enough Focus on Income Taxes Looking ahead, noted the Wall Street Journal, is always a good idea when small business owners do their business and personal financial planning. And income taxes are one of those things that most businesses should probably give more attention to all year. Too many of them put off even thinking about taxes until year-end or just before the filing deadline. Like their investing, their tax planning should be a year-round issue. Consider the Tax Consequences! Small business owners pay their taxes all year long, so they should be focusing on tax planning all

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Tax-free gift limits: How much money can your client give? Many clients believe that the recipients of cash gifts face no tax burden since existing tax laws provide exemptions to the giver and don't treat these gifts as income for the receiver, according to Huffington Post. However, there will be tax implications if the cash gift exceeds $14,000 per person in a year. The giver is required to deduct the amount above the gift-tax exemption limit from their lifetime exclusion, or the annual limit they are

People scrambling for last-minute write-offs of charitable contributions, medical bills, and other deductibles prefer to believe that just writing “Dec. 31” on checks automatically entitles them to claim deductions for 2015. Wrong. What they need to do is put payments in mailboxes in sufficient time for letters to be postmarked by midnight on Dec. 31. As long as they do that, the IRS couldn’t care less that the checks reach recipients in 2016. The IRS warns that they garner no 2015 deductions for checks mailed by Dec. 31, but postdated to prevent cashing until 2016. The rules are similar when

Filing Changes Partnership tax returns will be due on March 15, not April 15 (for calendar year Partnerships) C-corporation returns will be due on April 15, not March 15 (for calendar year C Corporations) S-corporation returns will continue to be due on March 15 (for calendar year S Corporations) Expensing and Bonus Depreciation Code Section 179 expensing is a key component of year-end tax planning. Sec. 179 property is generally defined as new or used depreciable tangible property purchased for use in a trade or business. Software was also recently included, as was qualified leasehold improvement property, qualified restaurant property and qualified

Contributing to a retirement account qualifies you for tax breaks and employer contributions, both of which will grow your nest egg faster. Here's how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016. Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. A year-end plan for your lagging energy investments: Undervalued investments in the energy sector are good candidates for tax-loss harvesting if clients want to minimize their tax burden this year, according to The Wall Street Journal. With a few weeks left in 2015, the performance of investments in the energy sector is all but assured to be at or near the bottom among all sectors. Clients having taxable gains in non-energy portions of their portfolios may want to consider doing some year-end tax selling . --

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Calculating the tax bite when converting a 401(k) to a Roth IRA: Instead of converting the entire 401(k) assets to a Roth IRA within a year, clients may want to consider spreading the conversion over several years to minimize the impact on their income taxes, according to Kiplinger. A Roth conversion is a wise move if clients are currently in a low tax bracket and face the possibility of getting bumped up to a higher one when they start taking distributions. --Kiplinger 5 tax strategies to

As we get closer to the end of yet another year, it’s time to tie up the loose ends and implement tax-saving strategies. Of course, everyone has a unique tax situation, but here are some strategies to add to your year-end tax planning arsenal: • Boost charitable contributions with a donor-advised fund. These funds essentially allow you to obtain an immediate tax deduction for setting aside funds that will be used for future charitable donations. With donor-advised funds, which are available through a number of major mutual fund companies, as well as universities and community foundations, you contribute money or

Our weekly roundup of tax-related investment strategies and news clients may be thinking about. Reduce the tax hit on your investments: Clients who want to pass on their stocks in an IRA to their children after they die need to name the youngsters as beneficiaries of the account, or execute a will to that effect if the investments are not in an IRA, according to The Cincinnati Enquirer. Since drafting a will entails a costly and complicated process, clients may opt for a "Transfer on Death Agreement" to make the future transfer faster, more efficient and cheaper. The taxes for

1. Check on Congress: The most important thing you can do this year for your tax planning is to keep an eye on Congress to see whether lawmakers manage to extend popular tax provisions before the end of 2015. Some notable provisions must be extended in order to allow: • Taxpayers aged 70½ and over to make tax-free charitable contributions from individual retirement accounts (IRAs); • Businesses to deduct up to half of eligible equipment placed in service this year; • Teachers to receive an above-the-line deduction for $250 in classroom expenses; • Students and parents to receive an above-the-line

Our weekly roundup of tax-related investment strategies and client-related news. How clients can avoid taxes on a home sale legally: Knowing the step-up basis can help clients curb the tax impact when selling their homes, according to Huffington Post. Capital gains of up to $250,000 for individuals or $500,000 for couples will be exempted from tax, provided the property involved has been the seller's primary home for two of the five years before closing the deal. The step-up in home basis should be considered when selling the property, especially if the home value has appreciated or depreciated considerably over time,

Since we usually get a number of questions regarding the impacts of an LLC electing to be taxed as an S Corporation we thought it would be beneficial to address some of these issues. An LLC is a legal structure, not a tax structure. For tax purposes an LLC is “diregarded”. Basically meaning that we pretend as if it does not exist. So, an LLC with two or more owners, it will be classified as a partnership for tax purposes, and if it has only one owner, the entity will be disregarded for tax purposes and report as a sole

Estate planning is a very crucial part of developing a comprehensive tax strategy. Here are some of our favorite tips: Take advantage of the unlimited marital deduction. If your spouse is a U.S. citizen, you can leave any amount to him or her with no federal estate tax hit. If you are a U.S. citizen, your spouse can do the same, but not all if your estate exceeds the exemption! Take advantage of the portable estate tax exemption. You can direct the executor of your estate to leave any unused federal estate tax exemption to your surviving spouse. Make bequests

Our weekly roundup of tax-related investment strategies and client-related news. The right way to make IRA withdrawals: From a tax perspective, there is no difference between taking a lump-sum distribution from an IRA every year or making a monthly or quarterly withdrawal, according to Money. However, retired clients need to make the withdrawal before December 31, in order to avoid a 50 percent tax penalty, in addition to regular income tax, on the distribution. However, clients with a more complex investment portfolio may be better off taking quarterly withdrawals. “You can’t avoid the taxes, but keep what you don’t need

Our weekly roundup of tax-related investment strategies and news you may be thinking about! Would your client like to offset taxes on both gains and income? Clients may be in a better position to do tax-loss harvesting now instead of waiting until the end of the year, according to CNBC. Normally, taxpayers largely identify the same investments or stocks that have declined in value, and so your client may in fact be selling at a lower price than they need to. Also, in December, volumes often dry up, so this article suggests taking tax losses throughout the year. -- CNBC

Currently expired business tax breaks include Sec. 168 bonus first-year depreciation; increased limits for Sec. 179 expensing; and the Sec. 41 research and development credit. At this point, it is still unclear when, or if, Congress will act to extend these expired provisions, but there are a number of steps business taxpayers can take to reduce taxes, even without those expired items. Generally, to reduce 2015 taxes, businesses will want to accelerate deductions into this year and delay income until next year. Here are some suggestions to offer business clients to do that. Deferring income to 2016 Cash-method businesses that

Our weekly roundup of tax-related investment strategies you may be thinking about. 5 ways to trim your client's taxes on investments: A "high-cost, long-term" tax-reporting methodology is an option that clients can use to reduce their taxes on investment income, according to this article on NerdWallet. Tax-loss harvesting is another strategy to save on taxes, while putting assets with the biggest growth potential in Roth and taxable accounts is a smart move. Investors also need to keep actively managed funds away from their taxable accounts and opt for exchange-traded funds, which are more tax-efficient than mutual funds. -- NerdWallet Finding

Background: The amount of income subject to the two lower tax brackets (10 percent and 15 percent) for married taxpayers filing jointly is exactly twice as large as the amount of such income for single taxpayers. However, the tax brackets above 15 percent cover a larger total amount of income for two single taxpayers than for two taxpayers who are married. For example, in 2015, two unmarried taxpayers can each have $90,750 of taxable income before they hit the 28 percent bracket. On the other hand, if they are married, their combined taxable income over $151,200 will be taxed at

Our weekly roundup of tax-related investment strategies and news you may be thinking about. Muni-bond appetite on the rise as clients seek tax-free safety: More clients are looking to add municipal bonds in their portfolios as they prefer safer investments in the wake of the Fed's decision not to raise interest rates, according to MarketWatch. In addition to its "defensive nature," this asset class also offers tax exemption on investors' interest payments. This bullish environment should spell well for the absolute value performance for munis, according to a report from Bank of America. -- MarketWatch Buying an MLP fund? Look

The combination of demographics and the recession has put empty nesters and relocators on a collision course for a big tax mistake. They “inadvertently” lose their ability to use their $250,000/$500,000 capital gains exclusion on the sale of their principal residence. “They think the market still has upside so they rent out their house for a few years, but if you haven’t used your principal residence for at least two of the five years prior to the sale, you lose the exclusion,” says Suzanne Shier, director of tax strategy at Northern Trust. There’s an exception for people moving into a

It may be decades away, but pensions are few and far between in the private sector these days, which puts the responsibility of building your retirement nest egg squarely on you. Follow these simple tips to get started on the path toward financial security. 1) Create a Starting Point Before you start investing, it is important to have a complete understanding of your overall financial picture, says Jean Wilczynski, financial advisor at Exencial Wealth Advisors in Old Lyme, Connecticut. Create a personal balance sheet that includes income, expenses, assets (your home, car, cash, investment accounts) and liabilities (student loans, mortgage,

There are strict limitations on losses from investments in tax shelter deals, such as limited partnerships. Generally, tax shelter losses can be offset only against income from similar investments. Shelter losses can’t be used to wipe out taxes on nonshelter income, such as wages and stock market profits. However, the tough anti-shelter restrictions are subject to several exceptions for investors. The tax code does authorize limited relief for losses of up to $25,000 suffered by relatively small-scale investors in rental properties, be they multiple-family homes, condominiums, cooperative apartments, or stores. To qualify, property owners must be “active” managers. This requirement

Do you own a vacation home (or year-round home, for that matter) near annual events where rents soar for short periods – for instance, Indianapolis for the Memorial Day weekend race; Louisville, Kentucky, during Derby week; and Augusta, Georgia, during its Masters golf tournament? With the blessings of the IRS, you can rent out your home, pocket the rent checks, and sidestep taxes on the rental income. Just make sure to rent out your cottage or condo for less than 15 days during the year, and you don’t have to declare any of the income you receive. But go beyond

Our weekly roundup of tax-related investment strategies and news you may be thinking about. See the IRS's incredibly generous tax benefits for hiring your own child: Aside from the Child Tax Credit, clients can also take advantage of another child-related tax benefit if they hire their own children in their business, according to Forbes. By hiring their children and paying them a salary, parents can reduce their business' taxable income since the children's wages are tax-deductible. The wage should not exceed $6,300 annually so the children will be exempt from paying taxes and filing a tax return. -- Forbes Understanding

What would you do if the IRS allowed you to take an extra year to pay taxes on $11,000 worth of income? That’d give you $2,750 to work with for 12 months, if your tax rate was 25%, before the IRS would come asking for it. Here’s How It Works When you report income to the IRS, you have two choices: you can either report on a cash basis, or an accrual basis. The choice you make can decide whether or not you get that extra cash to work with for a year. Let’s take a look: Cash basis is

Best ways for kids to invest gift money: Parents can teach their children to invest their gift money in stocks, mutual funds and other investments by creating a custodial account under the Uniform Transfers to Minors Act or the Uniform Gifts to Minors Act, according to Kiplinger. Children will face the "kiddie tax" if the interest, dividends and capital gains exceed $1,050, with the parents' rate to apply if total earnings is higher than $2,100. – Kiplinger The skinny on paying estimated taxes: Taxpayers need to pay estimated taxes if they have earnings that are not included to withholding taxes,

Our weekly roundup of tax-related investment strategies and news! Clients got losses? A tax break could soothe the pain: Clients who incurred losses from the recent market turmoil can minimize the impact by selling poor-performing securities and use the losses to offset capital gains taxes, according toThe Wall Street Journal. Another option is tax-loss harvesting, which allows investors to sell a losing position and buy a similar security. Although clients can improve their tax position with tax-loss harvesting, they need to be careful when using this strategy as it could lead to major pitfalls, such as increased capital gains tax

What is the right place to set aside and invest your money for retirement? Both the 401(k) and Roth IRA are useful, popular retirement vehicles. Each has its advantages and disadvantages. A 401(k) is an employer-sponsored plan that allows savers to defer taxes to a later date. If your employer offers one, it works like this: You sign up for it and choose your investments from the options available. Then, your employer redirects money from your paycheck to your 401(k) before paying federal income tax on the money. The money is tax-deferred, meaning it does not count as your taxable

Because it's impossible to predict the stock market, it's essential to learn the best way to write off losses. The deck is stacked against you The tax code disenfranchises investors and traders from deducting losses. The capital-loss limitation, wash-sale loss deferrals, passive-loss activity limitations and carryovers, investment interest expense carryovers, wasted personal investment losses, at-risk limitations and more are used to pay for or offset lower long-term capital gains rates (up to 20%) on positions held over 12 months and on qualifying dividends. Ordinary tax rates rise to 39.6%, almost twice as high as long-term capital gains rates. Buy and hold

Our weekly roundup of tax-related investment strategies and news! Top tips for minimizing taxes on Social Security: Most clients who only receive Social Security benefits during their retirement years are likely not going to be taxed unless if they also receive income from other sources like an IRA or 401(k), according to Investopedia. However, if the Social Security benefit hits $25,000 for single individuals or reaches $32,000 for married filing jointly, then the income is subject to tax depending on the amount. To avoid taxes on other sources such as traditional IRAs or 401(k)s, one may consider converting these accounts

When you're getting started in a business, it can be tempting to rush through to get to the good stuff. After all, you have your cool idea and your even cooler sounding name… Can't you just tack an LLC onto the end using one of those online services? The short answer is no. Entity selection is more important than you think. Your choice of entity can affect the number and identity of shareholders and partners, equity structure, control and management, as well what kind of funding you might be eligible to receive. I know what you're thinking: why not just

Answer: Just look at the reasons Complete Financial Services is picking up new clients! We have been building our practice by doing four simple things: 1) We do what we say we are going to do. 2) We charge what we say we are going to charge. 3) We ensure that our client understands the value exchanged. 4) Most importantly, we give each client the personal attention and service they deserve. Louis Najjar, Managing Partner: "In my experience, when I pick up a new client they tell me that the prior CPA or Bookkeeper made one of more of the

Our weekly roundup of tax-related investment strategies and news you may need to think about... The right way to lower your tax bill on an inherited IRA: If you inherit a traditional IRA partly funded with nondeductible contributions you'll need to take special care in reporting your taxes when taking distributions from the account, according to Money magazine. These taxpayers should file Form 8606 to show that taxes have already been paid on the non-deductible contributions. "Taxes are bad enough to start," one expert says. "There's no reason anyone should pay more than they should just because of poor record

Rental Losses, In General As a general rule, all rental activities are considered "passive" - a category of business activities defined by the IRS - under Section 469, regardless of the extent to which the taxpayer participates in the rental. As a result, losses from a rental activity are generally only permitted to reduce income from passive activities (although, there is a limited $25,000 loss deduction available to certain taxpayers who "actively participate" in their rentals). There is a large exception to this default treatment of rental activities as passive, however, for so-called "real estate professionals." If a taxpayer qualifies

The Good News: more and more businesses, including those in the sharing and on-demand economy, are making use of independent contractors in their workforce. The Bad News: the controversy over the classification of workers as employees or as independent contractors continues to be a hotbed of regulation and litigation in a wide variety of industries. In this segment, we discuss the measures you can institute to protect your company from attack by taxing authorities and from lawsuits by former workers. Why you need to consider the IRS when hiring contractors One of the benefits of hiring independent contractors is that

Are you planning on opening a business soon? Or maybe just planning on placing some new equipment or property in service for your existing business? The Sec. 179 election to expense certain business assets allows a deduction in the year the eligible property is placed in service, limited to $500,000 between 2010 and 2014 and $25,000 for 2015 unless extended retroactively (Secs. 179(a) and 179(b)(1)). The limitation is reduced when the cost of eligible property placed in service during a tax year exceeds $2 million between 2010 and 2014 and $200,000 for 2015 (Sec. 179(b)(2)). A taxpayer's return must specify

Vacation Home Rentals If your clients rent a home to others, they usually must report the rental income on their tax returns. However, they may not have to report the rent they get if the rental period is short and they use the property as their home. If the property is used as a home and they rent it out fewer than 15 days per year, they do not have to report the rental income. In this case they can deduct their qualified expenses on Schedule A. In most cases, they can deduct their rental expenses. If the property is

Over the past decade you've seen a lot of firms add the phrase "Wealth Management" to their brochures and websites. When you look to define the term financial planning, a lot of thoughts come to mind. But the definition that fits best for our firm is "the management of resources, both financial and personal, through changing environments and situations in order to guide a person, family or entity toward accomplishing their life goals and objectives." To us, advertising "Wealth Management" services should not be some marketing gimmick to get clients in the door. Our team at Complete Financial Services strongly

"Instant gratification is tempting, but making efforts to teach young adults how to adopt sound fiscal practices will set them up for a lifetime of financial solvency and independence," writes AICPA's Lauren Sternberg. "And, with the right financial savvy, young consumers could presumably afford to spend a little extra when it's time to have a good time." Five Tips for Young People: Save, Save, Save! If you don't have direct deposit, you can commit to put 10 percent of each paycheck into a savings account. You can't miss what you never saw in the first place. Learn to Budget If

Four out of five family-owned businesses in the United States are not ready for succession, according to a new study by the accounting firm Baker Tilly. The study, Succession Reset: Family Business Succession in the 21st Century, identified several of the main challenges faced by family business owners. Those include being ready for transition or market sale, and ensuring that the business has the financial capacity to support both retirement and the next generation. "For family owned businesses, it can no longer be assumed that the eldest child will take over the leadership of the business when the parent is

In simpler times, all you needed to welcome a new baby into your family was love and an empty drawer in which he or she could sleep. In 2015, babies are expensive and modern parents need a lot of gear: diapers, cribs, strollers and car seats—not to mention child care. The list can seem endless. And, it all adds up fast. The good news is, there are more ways than ever to offset the considerable costs related to having a child. If you are expecting or planning to have a child, the seven tax tips below might help. Infertility Treatments

This summer, you may be sticking close to home or traveling out and about. Either way, if you have a vacation home, it pays to think about taxes now, longbefore tax time next year. I'll bet you are used to the admonition thateverything is income to the IRS. Everything has to be reported on your taxes, right? It is true that if you rent a home to others, you usually must report the rental income on your tax return. However, you may not have to report the rent you collect if the rental period is short and if you also

"In every country I've been in, real estate is the best tax shelter," said Tom Wheelwright, CPA, an advisor and speaker at Robert Kiyosaki's Rich Dad Poor Dad seminars, and a contributor to Donald Trump's Wealth Builders Program. "Tax law is a series of incentives," he said. "The big picture policy is that the government would like to encourage investment in real estate." And by owning real estate, you get to utilize what Wheelwright calls the king of all deductions, depreciation. "The number one benefit from investing in business or rental real estate is depreciation," he said. "Say you paid

It's hard to believe we're halfway through 2015 - almost time to think about purchasing W-2s and 1094-C and 1095-C papers. Almost, but not quite. Now is the perfect time to look at the fringe benefits you provide to your employees. This specific taxation is a main focus of the IRS right now, and they recently conducted several free webinars to review the taxability of fringe benefits. In general, anything you give to your employees is taxable unless the IRS specifically exempts it. Cash and cash equivalents are always taxable, such as that $50 gift card you gave to the

Deduct capital loss the right way and save on your taxes: Selling losing securities and using the losses to offset capital gains is a good strategy for investors to save on taxes, according to Motley Fool. Those who declare capital losses from selling stocks need to fill out a Schedule D and submit the document with their Form 1040 tax return. Short-term capital losses can be used to offset short-term gains first and any excess can be used to write off long-term gains. -- Motley Fool 4 mistakes people make with stock options: Company stock options are good investments for

As of July 1, the IRS has issued a new ruling that imposes heavy fines on small businesses for helping defray the cost of their workers' insurance or medical expenses. The National Federation of Independent Business (NFIB) said small businesses that get caught helping their workers buy insurance or pay medical bills can be fined 18 times more than larger employers that don't provide coverage at all. "It's the biggest penalty that no one is talking about," said NFIB policy director Kevin Kuhlman in a statement. "The penalty for compensating employees for healthcare-related expenses is enough to destroy most small

The Supreme Court's June 26 decision, Obergefell v. Hodges, affirmed a constitutional right to same-sex marriage in all 50 states, opening up tax, estate planning and employee benefits opportunities for couples in the 13 states that have not permitted same-sex marriage. For one, same-sex married couples may be able to claim state income tax refunds. They no longer have to worry about state estate taxes at the death of the first spouse. And they may save on health insurance at work. Same-sex couples in these states have been operating in a "sort of limbo situation," says Nicole Pearl, an estate

As the warm weather hastens the end of another school year, parents are facing some big expenses. Summer camp costs about $300 per week, on average, or $2,400 for a typical eight-week session. And following the summer, parents will face average annual college tuition bills ranging from $9,139 (for state residents at public colleges) to $31,231 (private college). But the IRS doesn't want to take away from our enjoyment of the summer weather and vacations, and it offers some credits and tax-advantaged ways to help pay for camp and college.According to the recently released IRS Special Edition Tax Tip 2015-12

Do You Own An S Corporation? S Corporation owners typically are required to pay themselves a "reasonable" salary. At year-end, remaining profits can be distributed to the shareholders free of employment (Social Security and Medicare) taxes! The challenge is determining what salary is "reasonable." There are two ways to survive an IRS Reasonable Compensation challenge. The first is a proactive strategy, getting all your clients' ducks in a row ahead of time so you are prepared if the Reasonable Compensation figure is challenged. The second is a desperate last-minute struggle to defend a Reasonable Compensation figure that might not have

Required Minimum Distributions (RMDs) from Retirement Plans- You don't need the money, so what do you do with it?! If a retiree has sufficient assets and doesn't need to spend the required minimum distributions (RMDs) from their retirement plans, they might be frustrated by being forced to take them and incur the associated tax liability. There are ways, however, that they can make lemonade from a lemon. Here are several ideas: Buy life insurance: Life insurance provides a potential tax-free death benefit to heirs, and lets the retiree, through leverage, possibly give those heirs more than they would wind up

8 smart mid-year tax moves to pocket more money: Clients who want to save on taxes in next year's tax season are advised to adjust their withholding if they receive a hefty refund every year, according to Kiplinger. They also need to review the amount of contributions to their 401(k) plans and flexible spending/reimbursement plans, as well as the taxable portion of their investment portfolio. Taxpayers who are turning 70-1/2 this year need to start taking RMDs from their IRAs and other retirement plans to avoid tax penalties, while those who want to save more on taxes may consider using

As you reflect on 2014 and start thinking about tax planning for 2015, you may discover that your income could be subject to an additional 3.8% tax. Thankfully, smart planning can help you reduce that additional tax burden. The 3.8% Medicare tax on net investment income became effective in 2013 and applies if your adjusted gross income exceeds $200,000 if single or $250,000 if filing jointly. The tax is levied against investment income like capital gains, dividends, interest, rents, annuities, royalties (unless earned in an active trade or business). More importantly, it applies to all passive business income regardless of

Sole Proprietorship Chance of Audit… Gross Receipts Percentage Covered Under $25,000 1.2% $25,000 to $100,000 2.5% $100,001 to $200,000 4.7% $200,001 or more 3.3% Partnerships Chance of Audit… There were over 3.4 million partnership returns filed in 2009. Of those 12,406 were audited. Over 40% came back…no change. C Corporations Chance of Audit… Total Assets Percent Covered No balance sheet 0.4% Under $250,000 0.8% $250,000 under $1,000,000 1.4% $1,000,000 under $5,000,000 1.7% $5,000,000 under $10,000,000 3.0% S Corporations Chance of Audit… There were over 4.4 million S Corporation tax returns filed in 2009. Of those 16,327 were audited. Of those 33% of field audits and 50% of correspondence audits came back with "no change". Now that you know your Audit

Saving for retirement can be intimidating and confusing. This leads many people to avoid thinking about it altogether and just hiding their heads in the sand. However, the ostrich approach won't make it any easier to reach retirement with a comfortable savings. In fact, avoidance is only one threat to your future financial security. Check out the following threats to your retirement account. 1. Not Starting Early Enough The most helpful advice about retirement saving is to get started as soon as you can. The greatest asset in wealth-building is time. The sooner you begin, the more compound interest you

2015 Tax Rates, Standard Deductions, Personal Exemptions, Credit Amounts & More With tax season firmly behind us (er, for those of you who didn't file for extension), now is a good time to take a look at your current financial picture and check to see how it squares against the 2015 tax rates, adjustments and other tax items. If you aren't expecting any significant changes, you can use the updated tax tables to estimate your liability for the 2015 tax year. If, however, you are expecting to make more money, get married, buy a house, have a baby or other

Home Transfers to Children Can Work for Estate Planning if Done the Right Way MAY 14, 2015 BY ROGER RUSSELL Popular at times in the past, but perhaps out of favor more recently, QPRTs (Qualified Personal Residence Trusts) may be an idea whose time has returned. QPRTs permit a home's transfer to one's children or other beneficiaries at the lowest possible tax cost while the homeowner continues to live in it. The main reason a client would do a QPRT is if the client has a residence that is a significant part of the estate and expects the home

Tax Strategy Scan: Stocks vs. Funds Our weekly roundup of tax-related investment strategies and news your clients may be thinking about. The advantages of owning individual stocks: Investors who favor individual stocks over stock funds say that their strategy has given them more earnings from dividends while lowering their tax bills, according to Morningstar. Investing more assets in individual stocks allowed them to better control their portfolios over time. Some investors, however, are wary of individual stocks because of the volatility that comes with owning them. -- Morningstar Getting the most from charitable giving with donor advised funds: Donating appreciated

TAX CLINIC by Randy A. Schwartzman, CPA, MST, and Patricia Brandstetter, J.D., LL.M., Melville, N.Y. Editor: Kevin D. Anderson, CPA, J.D. Gross Income This item provides an overview of the U.S. income tax implications of cancellation-of-debt (COD) income that results from bankruptcy or insolvency, with a focus on the differences in the tax treatment for C corporations, S corporations, and partnerships. Since the general rule provides that COD income is recognized even though there are no actual cash proceeds, absent certain exclusions to the recognition of COD income that are discussed below, the tax liability on COD income could create

When It's OK to Tap Your IRA You've been saving diligently for your retirement, but now you need some of that cash to cover today's expenses. Can you get to it without incurring Uncle Sam's tax wrath? In some instances, the answer is yes. The tax laws governing early distributions are toughest when it comes to traditional IRAs, but they also apply, albeit slightly differently, to Roth accounts. For both types of retirement plans, the IRS generally considers IRA withdrawals made before you reach age 59 1/2 as premature distributions. In addition to owing any tax that might be due

Ten Things to Know About 1031 Exchanges Tax nerds may be able to spout off Internal Revenue Code Sections, but most people never get beyond 401(k). (That's right, your workplace retirement savings plan is named after a section of the tax code.) Still, "Section 1031″ is slowly making its way into daily conversation, bandied about by realtors, title companies, investors and soccer moms. Some people even insist on making it into a verb, a la FedEx , as in: "Let's 1031 that building for another." (While Section 1031 isn't restricted to real estate, that's clearly where most of the discussion

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about. 15 wise moves to make with your client's enormous tax refund: The average taxpayer refund for the 2014 filing season was $2,893, slightly higher than the amount recorded in the recent years. Tax refunds can be put into good use by paying down high-interest credit-card debt and making additional mortgage payments, according to Motley Fool. Taxpayers could also consider investing their refunds in the stock market or charitable organizations. -- Motley Fool4 investments you can make completely tax-free: Setting up a Roth individual retirement account

BY GEORGE G. JONES AND MARK A. LUSCOMBE As more and more states legalize either the recreational use of marijuana or the medical use of marijuana, more tax advisors will be encountering issues with respect to the representation of these businesses and recreational or medical marijuana users. The main issues stem from the fact that, even though states are legalizing these businesses and activities, at the federal level marijuana remains a Schedule I drug under the Controlled Substances Act of 1970. These legal businesses and activities under state law remain illegal businesses and activities under federal law. The Supreme Court