Tax Deductible Holiday Parties!
by TaxDoctor on November 16, 2018 at 3:38 pm
It’s that time of year again and many businesses with fat bottom lines, or even just with joy in their hearts, are getting ready to rinse and repeat what they have always done; buying tickets and food (perhaps adult beverages also) to celebrate and appreciate their work force. The new rules generally allow the holiday party if itâ€™s at the office, but the IRS has set new nondeductible guidelines for entertainment. It’s not clear, for instance, if you usually take you entire office to a holiday show, sporting event or concert, whether that part will still be deductible. More time and guidance will shake that all out, but at the moment itâ€™s possible that itâ€™s not, so you may want[…] The post Tax Deductible Holiday Parties! appeared first on Tax What If Doctor. […]
Free Vacation Possible Through Tax Planning!
by TaxDoctor on November 9, 2018 at 7:59 pm
People love to vacation. Some do it often, while others hold on all year for that one great week and live day by day until that magical start date on the calendar! A new wave in our digital age is to only take three or four day weekends, but do it more often. However you â€œvacationâ€�, they do have one common thread, and that is that they are not free. Furthermore, when you are officially vacationing (which becomes a mind set as wellâ€¦.I am officially on vacation as of right now!) you spend more freely, often with a disregard for cost shopping. â€œIâ€™m stopping at Starbucks for the Mocha Frappuccino, not Dunkin, cause Iâ€™m on vacation!â€�. What if next vacation[…] The post Free Vacation Possible Through Tax Planning! appeared first on Tax What If Doctor. […]
More Clarity on the New Tax Rules From the IRS Are Out!
by TaxDoctor on November 2, 2018 at 2:22 pm
This time itâ€™s clarification of the home equity mortgage deduction,Â and as with the business meals issue, it’s not as bad as it had first seemed!Â The more the details from the broad rules last February have come out, the more we are liking the news!Â When business meals were first named as no longer deductible, we thought it would be changing the landscape of the power lunch. Â But, details released later softened the blow and it came to light that what the IRS was actually after was a much more targeted class of meals inside entertainment and around employee cafeterias and the like. Now, the details have come out on another headline item that made people groan when first announced:[…] The post More Clarity on the New Tax Rules From the IRS Are Out! appeared first on Tax What If Doctor. […]
401(k) Loans Have Always Been a Tax Planning No No…Until the Trump Tax Code Changes!?
by TaxDoctor on October 26, 2018 at 5:02 pm
Part of giving good tax planning advice is understanding short term emergency needs, but also human nature. Â Often, before TCJA (Tax Cuts & Jobs Act) people in a cash crunch or in other emergencies would look to their 401(k) for a loan.Â Â After all, that’s where a great deal, if not all, of their “savings” are accumulated. Â However, there are several problems with that thought. Â First, a 401(k) isnâ€™t “savings”, itâ€™s a “retirement” plan, and the structure of the assets inside are not generally cash, so taking a loan could mean selling an asset and losing growth opportunity that could be critical to the fundâ€™s objectives. Â Secondly, the rules on repayment to the 401(k) account might be fine while you[…] The post 401(k) Loans Have Always Been a Tax Planning No No…Until the Trump Tax Code Changes!? appeared first on Tax What If Doctor. […]
Fix the Underpayment Tax Penalty Youâ€™re Headed For with A Simple Halloween Trick 😮
by TaxDoctor on October 19, 2018 at 3:22 pm
In a few months the U. S. will begin filing tax returns again, and at tax firms all over the country people will be making the “E-Trade” Shocked Baby Face (remember him?) when they see they are being charged penalties and interest for under paying their taxes due. Even if they made a 941 payment in the last quarter to cover ALL the tax due for the year, they can still find themselves fined by Uncle Sam as a penalty for not paying equally over the four quarters of the year. A last quarter over payment simply means they underpaid for three quarters and overpaid for one quarter, and no, it’s not “good enough” for the IRS. People also argue[…] The post Fix the Underpayment Tax Penalty Youâ€™re Headed For with A Simple Halloween Trick 😮 appeared first on Tax What If Doctor. […]