Tag: personal-finance
-
Struggling With Capital Gains Tax? Exploring Tax Deferral Through Qualified Opportunity Zones.
Capital Gains are always a double-edged sword. On one hand, selling an appreciated taxable asset has created a tax bill. On the other hand, that means your investment was successful, as in you sold it for more than you bought it. Especially in years with large tax bills, using different strategies to address your tax…
-
Is Buying Rental Properties a Good Idea? Why Business Owners are Drawn to Real Estate.
Why do so many business owners buy real estate? Usually, when I am reviewing the total assets of a business owner, inevitably, they own real estate outside of their home. That could be residential or commercial real estate, and usually more than one. While real estate is one of many investments, some owners value the…
-
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.…
-
How Much is Your Business Worth? The Power of Knowing the Value of Your Business.
Do you know the value of your business? Most owners don’t, and it could cost them. Even though most businesses in the US are technically small businesses, understanding the true value of these companies has not been generally accepted. Every owner who wants to sell their company will eventually go through the valuation process. However,…
-
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…
-
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…
-
When is the Best Time to Invest? How Dollar-Cost Averaging Could Make that Decision Easier.
If someone tells you when the perfect time to invest in the market is, they are likely lying. Market timing is always a popular topic, especially with the recent drops in the market. If you recently acquired excess money from a bonus, cashed out an investment, sold a business, etc., you may question how to…
-
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…
-
How Much is Enough? How to Balance Spending, Saving, and Giving.
In our modern economy, one of the major financial problems we face is what to do with our money. As small business owners, managing money is more than just turning profits, but also deciding what to do with those profits. Specifically, as we go throughout life and generate larger incomes and wealth, we increasingly understand…
-
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 