Wise Tax

12/07/2021

The final chance to reduce your annual tax bill is here. Maximize the kiddie tax threshold rules ($2,200 of unearned income taxed at your child’s lower tax rate).

12/06/2021

The final chance to reduce your annual tax bill is here. Consider the following idea: Review and maximize use of the $15,000 annual gift giving limit.

12/03/2021

The only way to have a friend is to be one. Ralph Waldo Emerson

12/02/2021

The "kiddie tax" is a rule that affects the investment income of children. A child's unearned income above a threshold amount will be taxed using trust and estate tax rates. The intent is to stop a high-income parent from shifting large amounts of earnings to a child in a lower tax bracket.

12/01/2021

The “Safe Harbor Rule” is a concept in statutes and regulations whereby a person who meets listed requirements will be preserved from adverse legal action. Frequently, safe harbors are used where a legal requirement is somewhat ambiguous and carries a risk of punishment for an unintended violation.

11/30/2021

LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits.

11/29/2021

Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Sole proprietors are still able to get a trade name. It can also be hard to raise money because you can't sell stock, and banks are hesitant to lend to sole proprietorships.

11/26/2021

Knowledge of what is does not open the door directly to what should be. Albert Einstein

11/25/2021

11/24/2021

An HSA is a tax-advantaged savings account whose funds can be used to pay qualified health care costs for you, your spouse and your dependents. The account is a great way to pay for qualified health care costs with pre-tax dollars. In fact any investment gains on your funds are also tax-free as long as they are used to pay for qualified medical, dental or vision expenses. Unused funds may be carried over from one year to the next. To qualify for this tax-advantaged account you must be enrolled in a high-deductible health plan (HDHP).

11/23/2021

Bring financial statements up to date for 2022: A clear understanding of your company’s current cash flows, revenues, expenses, assets, and liabilities is critical. For example, in an effort to cut expenses, you might prematurely lay off or furlough workers who are, in fact, essential to the continued success of your business.

11/22/2021

Business or Hobby? If you can't prove you have a profit motive, the IRS views your activity as a hobby, not as a business. Expenses of a hobby can be deducted only up to the amount of income from the hobby. You can't deduct hobby losses from your salary or other income.