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In This Issue
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CPA News:
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 Benefits of Home Ownership
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Family Medical Leave Credits
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Tax-Planning Time
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College with Little Savings
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Employee Benefits
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When the Owner Retires
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| Connect With Us
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| 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
- Non-Profit Administration
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| Additional Updated Information |
| May 2018 Newsletter |
| April 2018 Newsletter |
| Tax Filing Reminders |
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JUNE
15 - The second installment of 2018 individual estimated tax is due.
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| June 2018 Q & A |
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Q: Every year I pay for an all-day employee picnic during the summer, not to mention a holiday party later in the year. Are these expenses still deductible after the tax law changes?
A: The new tax law eliminated much of the 50% deduction for meals and entertainment expenses related to customers and business prospects, with some exceptions. If your company gatherings are for employees or the public, the cost is still deductible. Costs are generally not deductible if you entertain clients. Look for future guidance from the IRS on this matter.
Q: I used to invest through an online trader, but my income has increased significantly and I want to work with an investment advisor. How do I compare fees?
A: Comparing fees can prove difficult because of the number of different compensation methods. While there are still commission-based advisors out there, it’s more common to see asset-based advisors, who typically charge a small percentage of total assets they manage. Some advisors also charge an hourly fee, such as for advising about your investments in a company 401(k) plan or advising on other assets they don't manage. Ultimately, you’ll want to focus on what advisors net their clients after expenses to find a true measure of performance.
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Six Tax Benefits of Owning a Home
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If you own or are considering owning a home, you can take advantage of many tax benefits, such as deducting interest, property taxes and closing costs. Other benefits include deductions for upgrades, such as home improvements and energy efficient appliances.
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The New Small Business Family Medical Leave Credit
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There’s a new business tax credit that partially reimburses employers for providing paid family and medical leave for select employees. But small businesses should be informed before they try to use this new Family and Medical Leave Act (FMLA) tax break.
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It’s Tax-Planning Time
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Now is the ideal time to schedule a tax-planning session. Your tax return outcome is still fresh, and it’s early enough in the year to make corrective action to take advantage of the numerous new tax law changes taking place in 2018. Here’s a brief overview:
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College with Little Savings
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If you started saving for a child’s college education later than planned, there are still a few things you can do to help lessen the financial load.
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Appreciating Employee Benefits
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Helping employees to appreciate the benefits your company offers can result in happier employees who want to stay at their job. You can accomplish this with consistent and informative communications.
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When the Owner Retires
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Working to secure a comfortable retirement is difficult enough for many individuals, but the complexity multiplies when you combine that with selling a closely held business. If you’re selling your business, and it also happens to represent most of your retirement income, there are a few steps you might want to take as retirement beckons.
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Short Bits |
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BY THE NUMBERS
A joint report by the LIMRA Secure Retirement Institute and Insured Retirement Institute (IRI) finds only 51% of Americans believe they are knowledgeable about Health Savings Accounts (HSAs). Those who say they aren’t knowledgeable should learn more about HSAs, which not only provide a tax-free way to save for and pay qualified medical expenses but can be used for additional income (after paying ordinary income tax) in retirement.
The Federal Reserve Bank of New York's Center for Microeconomic data reports 40.2% of respondents say that their househould financial situation has improved compared to a year ago. This is the highest number since the survey’s inception in June 2013. Consumers’ outlook for the year ahead has also improved.
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MISSING A TAX REFUND?
If you earned income in the last three years but didn’t file a tax return because your wages were below the filing requirement or didn’t receive a refund you were expecting, the IRS may have some money for you. The IRS has millions of dollars in unclaimed and undeliverable refunds. After three years, the money becomes the property of the U.S. Treasury.
FULLY ENGAGED CUSTOMERS
Those who are emotionally and psychologically attached to a brand, product or company — spend 23% more than average consumers, according to Gallup, and 51% more than actively disengaged customers, who are resentful that their needs aren't being met. The lesson for retailers? Take good care of your customers.
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To learn more about Katz Viola Lebenhart & Mauro, LLP,
visit www.kvlmcpa.com.
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