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The Roth IRA: Tax-Free Retirement Savings

If you are looking for tax-free income and more flexibility during retirement, one option to consider is investing in a Roth IRA. While Roth IRA contributions are not sheltered from current taxes like contributions to traditional IRAs, they do offer other tax benefits during retirement. The Roth IRA advantage Retirement withdrawals (including earnings) are tax-free. […]

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Improve Next Year’s Tax Situation Now

Whether you receive a big refund or pay taxes on tax day, taking action now can ensure next year’s tax bill is optimized by not paying more than necessary. Update paycheck withholdings and forecast estimated tax payments. Reviewing and updating withholdings now gives you several months to spread out the tax impact on your daily […]

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Final Regulations Clarify QBI Deduction

The IRS recently published final regulations regarding Section 199A of the Internal Revenue Code. That section, created by the Tax Cuts and Jobs Act of 2017, offers a 20% deduction for qualified business income (QBI). This deduction may be available to non-C-corporation taxpayers such as sole proprietors, business partners, certain LLC members, S corporation shareholders, […]

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Roth Solo 401(k)s for Small Businesses

The Tax Cuts and Jobs Act (TCJA) of 2017 was not officially focused on retirement planning, but it’s had a major impact on the choice of retirement plans. After-tax plans, known as Roth accounts, may be more practical now. That can be especially true regarding solo 401(k)s, which are 401(k) plans that cover business owners […]

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The Standard Deduction’s Double Standard

The 2019 tax season, during which most 2018 tax returns are prepared, will soon peak at the April 15 deadline. One key trend is that more people are taking the standard deduction, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted. These changes result from passage of the Tax […]

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Deducting Qualified Business Income

The Tax Cut and Jobs Act of 2017 (TCJA) created a new deduction for small business owners who operate pass-through entities. That includes domestic companies operated as sole proprietorships or through S corporations, partnerships, certain LLCs, trusts, and estates. Income from such entities may allow business owners to deduct 20% of their qualified business income […]

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Handling Qualified Charitable Contributions

As the filing season for 2018 tax returns reaches a peak, many people will learn that they’re no longer itemizing deductions. The Tax Cuts and Jobs Act of 2017 (TCJA) placed limits on some deductions and increased the standard deduction significantly, so most taxpayers are taking the standard deduction, rather than itemizing. One result is […]

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New Tax Law Enhances the Appeal of C Corporations

Many owners of private companies have been leery of operating as a regular C corporation because it exposes them to double-taxation of business income. First, a corporate income tax applies to the company’s profits. Second, any dividends that pass to shareholders are subject to personal income taxes. Making matters even more expensive, C corporations don’t […]

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Making Stock Sales Less Taxing

Patient investors have generally prospered over the long term. Nevertheless, there are many reasons for selling stocks. Knowing the basics can help improve your tax position. Selling shares held in a taxable account will trigger taxable capital gains or losses, unless the sale proceeds are exactly the same as your basis ― your cost for […]

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