Suppose that your child needs an after-school job while your company is looking to hire extra help. Practical solution: If you are in a position of authority, you could put your child on the payroll. There are several tax incentives for hiring a child to work for your business. In effect, you are “splitting income,”…
Despite the recent nationwide real estate slump, you may realize a significant gain if you sell your home, particularly if you bought the place before prices soared in prior years. What about the tax consequences? Generally, the amount of the proceeds is subject to tax at capital gain rates. Currently, the maximum tax rate on…
The new health care legislation signed on March 23, 2010—the Patient Protection and Affordable Care Act—will dramatically alter the landscape for small-business owners in the coming years. One critical change: Beginning in 2010, a business may qualify for a special tax credit that can partially offset rising health insurance costs. The new health care credit…
Wealthy entrepreneurs with charitable intentions may choose to set up a private foundation. But a more convenient alternative is gaining in popularity: the donor-advised fund. This technique may be especially appropriate if you need to devote more time to business activities in the current economic environment. The fund does most of the hard work for…
Do you want to transfer your 401(k) plan assets to a Roth IRA? Under a recent tax law change, you can make the move in one fell swoop. Previously, it took two separate steps. In addition, another tax law provision taking effect this year may encourage this direct approach. Background: With a 401(k) plan, you…
The new Health Care and Education Reconciliation Act of 2010—recently signed in conjunction with the monumental new health care law—includes dramatic reforms in the federal student loan program. This new legislation could affect families of all stripes for years to come. Here is a brief summary of four points you should know about. 1. The…
In the current economy, it is not enough to generate sales. It is just as important to ensure that your business is actually paid for your services or products. That is why debt collection is increasingly becoming a concern of small-business owners. When pursuing debt collection activities, be careful to avoid violating any federal laws…
Currently, the 1.45% Medicare tax portion of Social Security tax applies to “earned income,” such as wages, but not “unearned income.” Effective in 2013, the new health care law creates two new taxes: An additional 0.9% Medicare tax is imposed on earned income of joint filers above $250,000 ($200,000 for single filers). A 3.8% Medicare…
Local accounting firms of Thomas R. Haggerty CPA, PC and Lewis & Knopf CPAs, P.C. recently announced a merger. Effective September 27, 2010, Thomas R. Haggerty, CPA, PC will be recognized as Lewis & Knopf CPAs, P.C. Lewis & Knopf, CPAs, P.C. is a local mid-market accounting firm based in Flint, Michigan. The firm maintains…
The local certified public accounting firm of Lewis & Knopf CPAs, P.C. is pleased to announce Anita Abrol, CPA has been appointed to the Investment Committee of the Community Foundation of Greater Flint (CFGF). “It is an honor to be part of an organization that provides such great support and benefit to the Flint community,”…
