If you are a business owner, it might be positive to employ your kids or other family members in the business. Especially, if you are already supporting these individuals at your higher tax rate, it might be quite beneficial to have an expense for the business and save on the taxes paid a lower rate
At the Federal level, receiving a gift or inheritance has different implications if the donor is a US citizen or if the donor is a foreign person. US donor Currently, the exclusion for estates at the Federal level is $13,990,000 per individual and $19,000 for gifts in 2025. Case US donor 1: If the taxpayer
Brief History First let’s start with a brief history on the Roth IRAs and how paying taxes today might* avoid them at retirement time (distribution). The word might* in the previous sentence is because we never know if Roth IRA will be taxed in the future (i.e. Social Security benefits began to be taxed in
With the increase cost of living (inflation) and other factors, one in five Americans has no retirement savings and over half of them consider that they have not enough for retirement. Based on our experience, we consider that the vast majority of Americans is not ready for retirement as a) cost of healthcare and homecare
Do You Need to File Taxes in the U.S. on a Visa? (CPA Guide for Non-Residents) If you are living or working in the United States on a visa, you may still have tax obligations. Understanding your responsibilities is essential to avoid penalties and legal complications. Who Must File Taxes Visa holders with U.S. income
As discussed often, the S Corporation requires the officer to have a reasonable salary (w2). The reasonable requires your salary to be: In line with the net profit or losses of the company - A start up company having losses might not have officer salary (neither owner distributions) You should perform a benchmark for your
In a common partnership, you will find a) general partners - running the business and responsible for the debts and b) limited partners - similar to investors where the money at risk is the amount contributed and not being involved in the day to day. The general partners will be subject to the self-employment tax
Cost Segregation is one of the big words use by tax gurus and tax strategists to potentially make you pay less taxes. Cost segregation is simply accelerating depreciation on real estate assets that are usually subject to 27.5 residential and 39 commercial to some items (parts of the building) at 5, 7 or 15 years
Thanks to the Secure Act 2.0 passed in 2022, there is another option for the overfunded 529 starting 2024. In the past, if you used those funds for non-education purposes, you had to pay your tax income and a 10% penalty on the earnings. Some of the rules to consider are: You can roll the
To close the year 2024, we bring to your attention a case on the news (NYTimes) a mind blowing case where a tax preparer through a network of franchises ATAX stole more than $145 million from the IRS. Back in April 2024, the IRS make the case public and issued a press release (see link
