Category Archives: Uncategorized

Tax Changes are Coming. How do you Plan?

Every election that we can remember there are promises of change to Taxation, most of the time for less tax but always Big Reform is one of the topics that seems to attach itself to every political candidate. Then after the new blood gets into the “Big Chair”, or the old guard settles back down the budget gets opened and the talks begin, and usually, taxes are added or deductions get eliminated. Many people expected the corporate tax rates to already be 15% from the election rhetoric of late but no surprise the changes to cut tax are always way harder to implement that changes to increase tax. Continue reading

Why We Waste Time and Therefore Money! …. and What To Do About It!

It’s hard to be logical all the time about everything.  The most financially successful tax clients we serve at least attempt to force themselves to be logical, for their own benefit.  For instance, our parents, as well as a subset of the economy including some popular radio show based advisors like Dave Ramsey say you should pay off your home and have a “free and clear” deed as a goal (they are wrong in most cases by the way).  That kind of thinking is emotional thinking, mixed perhaps with some presumptive attitude about what the general populous is capable of.  “Well, we know we can’t get people to do what would really be best for them based on pure math and logic because its complicated and would require that they educate themselves, so the next best thing we can get them to do is ( insert substandard advice here).  If advisors did not decide in advance what people are capable of they would explain the math and the tax code and most people would be better off managing their home mortgage as an asset, and many people would also be better off never paying off a house, but instead building an equal value or even more equity outside their home. Continue reading

Tax changes are out and it’s a mixed bag, not all great.

Well, at least the basic outline of what Trump would like to change in the Tax code is out, and for many Americans, it’s very good news. But we say that tongue in cheek.  It’s good news if you hire or become a pro-active tax planner. Why do we say that you have to be a tax planner for this to be good news? What Trump is saying is he’s going to substantially cut taxes for businesses and for regular taxpayers.  He’s going to “simplify” the tax code. Nowhere in the word simplify is there even a hint of lower personal income tax for most, although doubling the personal exemption would be a tax coup; for the working poor. Continue reading

With tax season behind us…

With tax season behind us, we have started to reflect on the amount of people that we saw in our office and some of the stark realities that we discovered while serving the public.  Estate planning is not a sexy topic.  But, that’s why, as we’ve been preparing people’s tax returns this year, we came to realize that because it’s not a sexy topic, it’s almost completely non-existent in our community.  How do we know that from doing tax returns?  Because estate planning is all about titling.  There are many, many options for estate planning, but generally speaking, there are three basic options that most people fall under. Continue reading

Extension is Not a Four Letter Word!

A tax extension is a request for more time in which to send returns to the federal or state taxing authorities in which you owe tax. A request for more time is not an extension of more time to pay any tax due. The federal and/or state need to receive 100% of all tax due by April 15th (or the actual filing deadline, if adjusted by weekend/holiday) each year in order to avoid penalties and interest charges. Therefore you the tax payer has the responsibility of estimating whether you might owe tax. Continue reading

Don’t drive past the best tax deduction option for cars!

During tax season a very common opportunity often missed comes from understanding how you use your cars as a tax deduction on your tax return.  It is very common for people who have a schedule C sole proprietor business to claim their mileage on automobiles, but the privilege of using personal deductions on a tax return is not limited to someone who is a schedule C.  For instance, a landlord might own three apartment buildings and file a schedule E on his personal tax return and not feel like they are “self-employed” as they has a full-time W-2 job. Continue reading

First major tax deadline is approaching!

The deadline to filing Partnerships, C-Corporations, and S-Corporations is approaching quickly. The deadline to file your clients’ business returns are March 15th, 2017 and unless they are ready by then they will be subject to fees and penalties.

An extension will give them an additional six months to file their business return, so they will not need to file until September 15th, 2017.

The extension does not extend when the payment for taxes are due, if applicable in their state. The payment of the taxes is due no later than April 18th, 2017. Your clients can prevent the late filing fees and penalties by filing an extension and paying the tax on their net sales in 2016, if applicable in their state.

We want to inform you now, so that you will not be penalized for late payment of taxes owed.

Tax Time Question That We Sometimes Forget To Ask.

I’m trying to improve myself as an advisor every day, and I was thinking about my current yesterday while having a conversation with my better half and they asked me, “How do you think they feel about the accounts they aren’t managing with you?” That really set me back and I actually lost sleep, so this morning I decided to send you this question and request.

Do you understand the accounts you own? Or do you just “own what you own” and in your mind moving those assets to our firm would not mean feeling any different? I think a lot of people I have made recommendations to have felt that they don’t understand what they have for investments but changing to another asset would just be changing to another account they don’t understand. I hope that’s not true but I fear that it is.

Would you take a 15 min call from me to discuss how you feel about what you own know?

I will not shove anything at you, I’m truly looking to improve myself and I would appreciate receiving the gift of your time.