Best practices when forecasting cash flow
Cash flow is a top concern for most businesses today. Cash flow forecasts can help you predict potential shortfalls and proactively address working capital gaps. They can also help avoid late payments, identify late-paying customers and find alternative sources of funding when cash is tight. To keep your company’s cash flow positive, consider applying these […]
Reviewing your disaster plan in a tumultuous year
It has been a year like no other. The sudden impact of the COVID-19 pandemic in March forced every business owner — ready or not — to execute his or her disaster response plan. So, how did yours do? Although it may still be a little early to do a complete assessment of what went […]
Why it’s important to plan for income taxes as part of your estate plan
As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates will not be subject to estate tax, more planning can be […]
Can investors who manage their own portfolios deduct related expenses?
In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses are not deductible through 2025 if they are considered expenses for the production of income. However, they are deductible if they are […]
Tax implications of working from home and collecting unemployment
COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations. 1. Working from home. Many employees have been told not to come into their workplaces due to the pandemic. If you are an employee who “telecommutes” — that is, you work […]
Homebuyers: Can you deduct seller-paid points?
Despite the COVID-19 pandemic, the National Association of Realtors (NAR) reports that existing home sales and prices are up nationwide, compared with last year. One of the reasons is the pandemic: “With the sizable shift in remote work, current homeowners are looking for larger homes…” according to NAR’s Chief Economist Lawrence Yun. If you are […]
Back-to-school tax breaks on the books
Despite the COVID-19 pandemic, students have gone back to school for the fall, either remotely, in-person, or under a hybrid schedule. In any event, parents may be eligible for certain tax breaks to help defray the cost of education. Here is a summary of some of the tax breaks available for education. 1. Higher education […]
Will You Have to Pay Tax on Your Social Security Benefits?
If you are getting close to retirement, you may wonder: are my Social Security benefits going to be taxed? If so, how much will I have to pay? This depends on your other income. If you are taxed, between 50% and 85% of your benefits could be taxed. This does not mean you pay 85% […]
How fraud perpetrators are stealing unemployment benefits
When Congress authorized an additional $600 in monthly unemployment benefits as part of the CARES Act, out-of-work Americans were not the only ones it helped. Criminals have descended like locusts on state unemployment insurance agencies, using stolen identities to fraudulently claim both standard benefits and the additional funds administered by the Pandemic Unemployment Assistance (PUA) […]
After you file your tax return: 3 issues to consider
As you may know, the tax filing deadline for 2019 tax returns was extended until next Wednesday, July 15, due to the COVID-19 pandemic. If you have already filed your 2019 tax return with the IRS successfully, there may still be some issues to bear in mind. Here are three considerations. Some tax records can […]