Category: Tax Strategy
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Planning to Exit Your Business? How Owners Structure Their Deals for More Post-Tax Dollars.
Different types of business sales can have dramatically different outcomes. After valuing a company and a potential buyer wants to purchase the business, the next step is structuring the type of sale between the buyer and seller. One of the most important goals for sellers is to minimize the amount of taxes on the sale.…
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Why is Your Tax Bill Higher Than You Expected? Understanding NIIT and Additional Medicare Tax.
If you’re a high-income earner or business owner, you may have looked at your tax return and wondered, “Why does this number feel bigger than it should be?”. After accounting for income tax and capital gains tax, there are two additional taxes that get added to those with high enough incomes: Net Investment Income Tax…
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Did You Finish Your Taxes? What Kentucky Business Owners Need to Know Before November.
Shortly after all the storms in February, the IRS and the State of Kentucky delayed the tax return dates. While most people still tried to get all their taxes done before Tax Day, the truth is they technically did not need to rush. Understanding what happened, whether you are going to owe more taxes, and…
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What is Tax Loss Harvesting? A Smart Way to Cut Taxes Without Hurting Your Investments.
When markets get choppy, some clients ask for proactive ways to take advantage of everything going on. For business owners and professionals with money in brokerage accounts, they could have an opportunity to lower their taxes without altering their overall investment plan. Tax loss harvesting is a strategy that lets you use temporary losses to…
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Maxing Out Your 401k? The Mega Backdoor Roth Might Let You Save Even More
For business owners and high-income professionals looking to maximize their retirement savings, traditional options like a 401k or a Roth IRA often come with frustrating contribution limits. But what if there was a way to contribute significantly more to a tax-advantaged account? The mega backdoor Roth strategy could allow you to do so. If your…
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Earn Too Much for a Roth IRA? How Business Owners Can Use the Backdoor Roth Strategy
During tax season, many business owners revisit their retirement savings options, including their Roth IRAs. Sometimes, that can be as simple as a maximum contribution. But for others, they make too much money to directly contribute to a Roth. While the IRS has rules around income limits for Roth contributions, business owners can still contribute…
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Inherited an IRA? What You Need to Know About the New Rules.
Did you inherit a retirement account recently and have no clue what to do with it? Inheriting a retirement account from a spouse or parent can be confusing, especially if this is the first time you have received one. Since the SECURE Act took effect in late 2019, the rules around inherited IRAs have changed,…
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Should I File Jointly or Separately? Filing Taxes as a Married Business Owner.
For many married business owners, tax season brings up a common question: Should we file jointly or separately? Especially with soon-to-be or recently married business owners, people often question whether it is best to combine financial lives for tax purposes. While there are situations where either option could be more beneficial, the important part is…
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How Should I Save My Money? Saving for the Future Doesn’t Need to be Complicated.
What does ‘saving for the future’ really mean for small business owners balancing personal and business goals? Once immediate needs are met month to month, the next question naturally turns to savings. What should you save for, and where should you save it? The answer depends on your specific situation but could profoundly impact your…
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What are the Seven Sources of Income? Do I Need All Seven?
There are many ways to generate money and income in the modern economy. Every now and then you hear about all the different sources of income someone has. What you don’t hear is what each one means and whether it truly benefits you to have them. There are generally seven major sources, and each one…
TC Falkner 