It’s June, and people will be filing their 2018 tax return in another 7 months with a recurring moan and groan. Now is the time to take your preventative medicine and avoid the pain! We all form habits, we are human.  We try to develop good ones to replace the bad ones and often we are successful, but most successes don’t come without a coach, cheerleader or some kind of support. Tax time is usually a time of regret over not being successful at last year’s promise to oneself, “I’m not going to pay this much again, I’m going to keep better records and search out a tax plan or some professional help and get smarter about this!”  Then, summer[…]

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Everywhere I go, like the dandelions popping up all over my lawn no matter hard I work at their extermination, there are cars on the side of the road and the unmistakable buzz of people with “yard sale face” rushing to see what hot deals they can find.  It’s a summer ritual, and as badly we all crave summer, a welcome sign.  The biggest yard sale we have ever seen has been open and running for almost a decade now and still not many people are parking out front and rushing in and THEY SHOULD BE!  It’s the capital gains tax rate and it’s a big sale. Does the IRS really have “Yard Sales?”  Yes, all the time! The tax[…]

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  Now that spring has sprung, it’s easy for people and advisors alike to drop the subject and not want to think about taxes for a while.  That is unfortunate, as most tax advice needs to be given by May or June to have long enough to help your clients when it’s time to file their next tax return.  Send them a contact like this one below and help them plant tax saving seeds they will enjoy next New Year!   Tax Planning has often been misunderstood because the advice that our parents gave us is theoretical and absent the consequences from the tax code.  What do I mean by that?  There are general principles in life that have been passed[…]

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It’s hard to be logical all the time about everything.  The most financially successful tax clients we serve at least attempt to force themselves to be logical, for their own benefit.  For instance, our parents, as well as a subset of the economy including some popular radio show based advisors like Dave Ramsey, say you should pay off your home and have a “free and clear” deed as a goal (they are wrong in most cases by the way).  That kind of thinking is emotional thinking, mixed perhaps with some presumptive attitude about what the general populous is capable of.  “Well, we know we can’t get people to do what would really be best for them based on pure math[…]

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With tax season now behind us, except for all of those who are on extension, tax planning takes a new turn.  People are going to senior fairs, home shows, boat shows.  It’s great to get out of the house and start getting out into the world again and everybody has some kind of wish list and plan for the summer; it is so short after all.  If you’re about to invest in a boat (I use the word invest with tongue in cheek as a boat as a whole and the ocean that you pour money into) or in landscaping for your home, new windows, new roofs, whatever you’re up to, there just may be a tax component involved.  Many[…]

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There’s a lot going on in the world right now, and a lot of new platforms to look at it on, but the best policy is to focus on tasks and don’t get distracted.  Since the invention of the Internet, people have become overloaded with information, and much of it is not necessarily true, or at least it’s slanted to create an opinion that has a business purpose behind it; fake news and many other ways that people can twist the truth.  Meaning that you have to be very careful about taking action on something after you hear about it without a little further digging.  This is especially difficult to do when people’s attention spans have shortened.  The other day, I had a[…]

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There are a lot of things that have changed about the tax code.  Things that were deductible before that will no longer be, as well as things that could not be done in the past that now can be.  There’s a lot of confusion and it will take time for the public to slowly get used to things that they have turned into habits, keeping medical receipts, keeping traveling expenses, deducting moving expenses.  There is a lot that has changed, but the most important things haven’t changed  Organizing and record keeping are more than ever extremely important, and that’s the place that most of the people who are confused about the new tax rules have already got an ongoing deficit that they should[…]

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A tax extension is a request for more time to send returns to the federal and/or state taxing authorities in which you owe tax.  A request for more time is not an extension of more time to pay any tax due.  The federal and/or state taxing authorities need to receive 100% of all tax due by April 15th (or the actual filing deadline, if adjusted by weekend/holiday) each year in order to avoid penalties and interest charges.  Therefore, you the taxpayer has the responsibility of estimating whether you might owe tax. How could people know how much they will owe before the taxes are calculated? You are the only one who knows what you have earned, what has changed about[…]

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At this time of year many people who were getting a refund have already filed their tax return.  It leaves the remaining majority of folks who, despite having withholdings, are still going to owe additional tax.  We talk a great deal about tax planning and changing behaviors to achieve better outcomes in the future, but many are faced right now with a tax bill for the past (2017 tax year).  So what can be done?  Anything?  The answer is YES!  It’s actually simple and easy for most folks to substantially reduce the tax liability they are facing by opening a prior year IRA!  It’s is one of the very few ways the IRS allows you to retroactively affect your taxes.[…]

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The deadline for filing Partnership and S-Corporation tax returns is approaching quickly.  The deadline to file your business returns is March 15th, 2018 and unless they are filed by then they will be subject to fees and penalties. An extension will give you an additional six months to file business returns, so a business would not need to file until September 15th, 2018. The extension does not extend when the payment for taxes is due, if applicable in their state.  The payment of the taxes from pass through filings is due no later than April 15th, 2018.

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