April 2019 E-Newsletter

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CPA NEWS

Last-Minute Tax Breaks
If you haven’t filed your 2018 tax return yet, double-check it to make sure you’ve taken every tax break you can. New tax rules are in effect, so you may find deductions you overlooked.

tax bill

Oh No! Your Tax Refund is Now a Bill
If you are anticipating a nice refund this year, it may be a good idea to prepare yourself for a possible letdown. Many taxpayers will receive a smaller-than-expected refund and might even owe taxes to be paid by April 15.

bill creep

Hints to Eliminate Monthly Bill Creep
Paying bills is inevitable, but paying too much is not. Are you aware of all the services you are paying for every month? Here are some tips to help you get a handle on your recurring monthly expenses:



selling your home

Selling Your Home
If you sell your home and don’t buy another one, and you make a large profit on the sale, you could owe federal capital gains taxes on your profit.

BY THE NUMBERS
Typically, you can exclude up to $500,000 of the gain from your income if you file a joint tax return; up to $250,000 if you’re single.



Services

  • Income Tax Preparation for all types of businesses and individuals
  • IRS, State and Local Audit Representation
  • Trust, Estate and Gift Compliance
  • QuickBooks setup, support and training
  • Business startup services
  • Monthly bookkeeping
  • Financial statements
  • Family Office
  • Nonprofit Administration

Additional Updated Information

March 2019 E-Newsletter

February 2019 E-Newsletter



April 2019 Q & A

Q: My fiancée and I will marry soon and wonder how we can best avoid arguments over money. Any tips about how we can keep the peace?

A: Start by having a conversation with each other and then with a financial professional. Establish your goals, wants and needs. Then create a strategy to meet these financial goals. Determine who will handle which financial chores. If one handles the checking and banking, make sure you both keep abreast of what’s happening. If you have opposite money styles, learn to compromise and be honest about areas where you can’t. Budget for short-term goals and build an emergency fund for unforeseen financial setbacks.


Q: I own an ice cream shop that stays open only from May through October. Do I need the same types of insurance coverage a year-round business needs?

A: If you own just about any type of business and have employees, state laws will likely require you to carry worker’s compensation insurance and to pay into your state’s unemployment fund. In fact, your insurance needs may be no different than a year-round business, just for a shorter timeframe. Look for an insurance agent who can talk to you about business insurance coverage for liability, property, commercial auto, cyber liability and more.


SHORT BITS

LENIENCY GRANTED.

The IRS announced it will generally waive an underpayment penalty for taxpayers who come up short on their withholding or estimated tax payments, but paid at least 80% of their total tax liability for 2018. Typically, taxpayers have to cover at least 90% of their tax owed to avoid a penalty. The IRS is granting this break due to the uncertainty that came with the 2018 tax law changes.

SIZE MATTERS.

The bigger your company, the more likely it is to offer employees a retirement plan. The life insurance marketing organization LIMRA found that 42% of small businesses, those with between 2 and 99 employees, offer retirement benefits. LIMRA and other researchers have shown that the availability of retirement benefits encourages employees to save.



DEDUCTION INCREASED.

Speaking of tax breaks, the IRS increased the deduction taxpayers can take when using their vehicle for business to 58 cents per mile. That’s up 3.5 cents from 2018. The standard mileage rate remains 14 cents per mile for use of an automobile in “rendering gratuitous services to a charitable organization” and is 20 cents per mile (up 2 cents) for vehicles used to obtain certain medical care. The business depreciation deduction for vehicles bumps up a penny, to 26 cents per mile.

INFLATION TAMED.

The Consumer Price Index (CPI), which accounts for all urban consumers of all items, rose a modest 1.9% in 2018. Airline fares declined 2.6%, while shelter at 3.2% led the annual increases.



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