"Taxes" Posts
The Affordable Care Act Is Less Affordable For Married Taxpayers
By Eric Lee
Much has been made about the controversial provisions of The Patient Protection and Affordable Care Act and Health Care and Education Affordability Reconciliation Act of 2010 (“ACA”). As documented through many other sources, the Act contains important changes that will have a substantial impact on small business owners and individuals. The most controversial of these changes include penalties for small businesses failing to provide adequate health insurance for employees and an individual mandate that people obtain health insurance, or be subject to a penalty. Much to the chagrin of many, the individual mandate was upheld by the Supreme Court, and …
Tax Efficient Transfers Of A Family Business
By GPSHow to Utilize a Grantor Retained Annuity Trust (GRAT) to Efficiently Transfer Your Family Business
Use of a Grantor Retained Annuity Trust, or GRAT, is a well-established gift and estate tax planning technique for transferring appreciating assets to beneficiaries without adverse gift tax consequences. A GRAT is often referred to as an “estate freezing” device because it allows an asset to be transferred to another party (the named beneficiary of the GRAT) at a future date, but allows the value of the gift to be calculated based on the asset’s value on the date it was contributed to the GRAT. …
Tax planning
By GPSBy Craig Koop as featured in Smart Business San Diego
How to take fair advantage of state and federal tax codes
All too often, when business owners begin discussing tax planning, what they really end up referring to is the process of tax compliance. Tax compliance is the process of reporting your income to the Internal Revenue Service and, hopefully, accurately ensuring that your tax preparer takes advantage of all the deductions and credits you are entitled to.
“The effects of good tax planning can obviously be foregone without proper reporting and compliance,” says Craig Koop, director of implementation with …
Still Time to Reduce Year-End Taxes
By GPSBy Craig Koop as featured in Home Business
Businesses and individuals, armed with an understanding of changes in the federal tax code, can still make decisions that may significantly impact their 2003 tax liability. There are generally three basic strategies that can be employed to decrease income tax liability: 1) deferring or accelerating income; 2) accelerating expenses; and 3) taking advantage of available tax credits.
Deferring or Accelerating Income
Individuals with relatively stable income, who experience no significant movement between tax brackets, most commonly postpone payment of taxes by deferring income and accelerating deductions. For example, delaying a year-end bonus …
