20 Nov 2018
0

(#434) Time for NQDC Plan Deferral Elections

Roger Rossmeisl, CPA
Taxes

If you’re an executive or other key employee, your employer may offer you a nonqualified deferred compensation (NQDC) plan. As the name suggests, NQDC plans pay employees in the future for services currently performed. The plans allow deferral of the income tax associated with the compensation. But to receive this attractive tax treatment, NQDC plans must meet many requirements. One is that employees must make the deferral election before the year they perform the services for which the compensation is earned. So, if you wish to defer part of your 2019 compensation, you generally must make the election by the end of 2018. NQDC plans vs. qualified plans NQDC plans differ from qualified plans, such as 401(k)s, in that: NQDC plans can favor highly compensated employees, Although your...

20 Nov 2018
0

(#433) Buy Business Assets Before Year-End to Reduce Your 2018 Tax Liability

Roger Rossmeisl, CPA
Taxes

The Tax Cuts and Jobs Act (TCJA) has enhanced two depreciation-related breaks that are popular year-end tax planning tools for businesses. To take advantage of these breaks, you must purchase qualifying assets and place them in service by the end of the tax year. That means there’s still time to reduce your 2018 tax liability with these breaks, but you need to act soon. §179 expensing §179 expensing is valuable because it allows businesses to deduct up to 100% of the cost of qualifying assets in Year 1 instead of depreciating the cost over a number of years. §179 expensing can be used for assets such as equipment, furniture and software. Beginning in 2018, the TCJA expanded the list of qualifying assets to include qualified improvement...

20 Nov 2018
0

(#432) “The Crash Course” Chapter 25: Future Shock

Roger Rossmeisl, CPA
Economic Concepts

As  posted on the Peak Prosperity.com and the Chris Martenson's Peak Prosperity YouTube Channel Background The Crash Course has provided millions of viewers with the context for the massive changes now underway, as economic growth as we've known it is ending due to depleting resources.  But it also offers real hope. Those individuals who take informed action today, while we still have time, can lower their exposure to these coming trends -- and even discover a better way of life in the process. In this Blog, I am presenting the 27 (inclusive of the introduction) installments of The Crash Course, one per week. Previous installments of "The Crash Course" can be found here: Blog (#311) Introducing "The Crash Course" Blog (#314) Chapter 1: Three Beliefs Blog (#319) Chapter 2: "The Three 'Es'" Blog...

12 Nov 2018
0

(#430) Donate Appreciated Stock for Twice the Tax Benefits

Roger Rossmeisl, CPA
Taxes

A tried-and-true year end tax strategy is to make charitable donations. As long as you itemize, and your gift qualifies, you can claim a charitable deduction. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? 2 benefits from 1 gift Appreciated publicly traded stock you’ve held more than one year is long-term capital gains property. If you donate it to a qualified charity, you may be able to enjoy two tax benefits: If you itemize deductions, you can claim a charitable deduction equal to the stock’s fair market value, and You can avoid the capital gains tax you’d pay if you sold the stock. Donating appreciated stock can be especially beneficial to taxpayers facing the 3.8%...

12 Nov 2018
0

(#429) Could “Bunching” Medical Expenses Into 2018 Save You Tax?

Roger Rossmeisl, CPA
Taxes

Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into 2018 beneficial for some taxpayers. At the same time, certain taxpayers who’ve benefited from the deduction in previous years might no longer benefit because of the TCJA’s increase to the standard deduction. The changes Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only to the extent that they exceed that floor (typically a specific percentage of your income). One example...

12 Nov 2018
0

(#428) Research Credit Available to Some Businesses for the First Time

Roger Rossmeisl, CPA
Taxes

The Tax Cuts and Jobs Act (TCJA) didn’t change the federal tax credit for “increasing research activities,” but several TCJA provisions have an indirect impact on the credit. As a result, the research credit may be available to some businesses for the first time. AMT reform Previously, corporations subject to alternative minimum tax (AMT) couldn’t offset the research credit against their AMT liability, which erased the benefits of the credit (although they could carry unused research credits forward for up to 20 years and use them in non-AMT years). By eliminating corporate AMT for tax years beginning after 2017, the TCJA removed this obstacle. Now that the corporate AMT is gone, unused research credits from prior tax years can be offset against a corporation’s regular tax liability and...

12 Nov 2018
0

(#427) “The Crash Course” Chapter 24: The Environment: Increasing Waste

Roger Rossmeisl, CPA
Economic Concepts

As  posted on the Peak Prosperity.com and the Chris Martenson's Peak Prosperity YouTube Channel Background The Crash Course has provided millions of viewers with the context for the massive changes now underway, as economic growth as we've known it is ending due to depleting resources.  But it also offers real hope. Those individuals who take informed action today, while we still have time, can lower their exposure to these coming trends -- and even discover a better way of life in the process. In this Blog, I am presenting the 27 (inclusive of the introduction) installments of The Crash Course, one per week. Previous installments of "The Crash Course" can be found here: Blog (#311) Introducing "The Crash Course" Blog (#314) Chapter 1: Three Beliefs Blog (#319) Chapter 2: "The Three 'Es'" Blog...

04 Nov 2018
0

(#425) American Bread & Circus

Roger Rossmeisl, CPA
Economic Concepts

As posted to the GoldSilver YouTube Channel on 10/30/18 (explanation of documentary as appears on YouTube) In Episode 10 of "Hidden Secrets of Money" (the second of a two clip arc starting with Episode 9), Mike Maloney draws eerie parallels to the misguided leaders and monetary policies that doomed civilizations from Ancient Rome to modern-day America. Can President Trump save America? Will the Federal Reserve Board be able to pull off yet another round of extremist interference and postpone a crisis? Find out how Mike believes it will play out. Prior Episodes of "Hidden Secrets of Money" can be found in these blog posts: Blog #242 - Episode 1: Currency vs Money Blog #253 - Episode 2: Seven Stages of Empire Blog #277 - Episode 3: Death of the U.S....

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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