ASU 2015-12
September 8, 2015 Knowledge Center
ASU 2015-12

The Financial Accounting Standards Board (FASB) recently issued ASU 2015-12 Plan Accounting:  Topic 960, Defined Benefit Pension Plans; Topic 962, Defined Contribution Pension Plans; Topic 965, Health and Welfare Benefit Plans.  The guidance consists of three parts: Part I designates contract value as the only required measure for fully benefit-responsive investment contracts.  An adjustment to […]

ASU 2015-07
September 2, 2015 Knowledge Center
ASU 2015-07

The Financial Accounting Standards Board (FASB) recently issued ASU 2015-07 Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Entities measuring investments at net asset value per share (NAV) as a practical expedient are no longer required to categorize such investments within the fair value hierarchy. The investments […]

All income investments aren’t alike when it comes to taxes
September 1, 2015 Knowledge Center
All income investments aren’t alike when it comes to taxes

The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15% or 20%) rather than at the applicable ordinary-income tax rate (which might be as high as 39.6%). Interest […]

IC-DISC can help slash your tax bill
August 25, 2015 Knowledge Center
IC-DISC can help slash your tax bill

If your business exports American-made goods or performs architectural or engineering services for foreign construction projects, an interest-charge domestic international sales corporation (IC-DISC) can help slash your tax bill. An IC-DISC is a “paper” corporation you set up to receive commissions on export sales, up to the greater of 50% of net income or 4% […]

Have you considered donating collectibles? Here’s what you need to know.
August 18, 2015 Knowledge Center
Have you considered donating collectibles? Here’s what you need to know.

If you’re a collector, donating from your collection instead of your bank account or investment portfolio can be tax-smart. When you donate appreciated property rather than selling it, you avoid the capital gains tax you would have incurred on a sale. And long-term gains on collectibles are subject to a higher maximum rate (28%) than […]

New IRS Requirement
August 13, 2015 Knowledge Center
New IRS Requirement

The IRS plans to amend minimum distribution rules for defined benefit plans to prohibit lump sum payments in lieu of ongoing annuity payments. The new requirement is to be effective July 9, 2015.

Teenagers’ retirement seem too far off? Set up IRAs for them!
August 11, 2015 Knowledge Center
Teenagers’ retirement seem too far off? Set up IRAs for them!

Teenagers’ retirement may seem too far off to warrant saving now, but IRAs can be perfect for teens precisely because they’ll likely have many years to let their accounts grow tax-deferred or tax-free. The 2015 contribution limit is the lesser of $5,500 or 100% of earned income. A teen’s traditional IRA contributions typically are deductible, […]

Tax-efficient ways to help your child buy a home
August 4, 2015 Knowledge Center
Tax-efficient ways to help your child buy a home

Mortgage interest rates are still at historically low levels, but they’re expected to go up by year end. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors that will help: 0% capital gains rate. If the child is […]

Compensation for S corp. shareholder-employees
July 28, 2015 Knowledge Center
Compensation for S corp. shareholder-employees

Tread carefully when determining compensation for S corp. shareholder-employees By distributing profits in the form of dividends rather than salary, an S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint filers and $125,000 for married filing […]

Tax treatment of NQSOs differs from that of their better-known counterpart
July 21, 2015 Knowledge Center
Tax treatment of NQSOs differs from that of their better-known counterpart

With nonqualified stock options (NQSOs), if the stock appreciates beyond your exercise price, you can buy shares at a price below what they’re trading for. This is the same as for the perhaps better-known incentive stock options (ISOs). The tax treatment of NQSOs, however, differs from that of ISOs: NQSOs create compensation income — taxed […]

How to begin collecting your 2015 tax refund now
July 14, 2015 Knowledge Center
How to begin collecting your 2015 tax refund now

If you usually receive a large federal income tax refund, you’re essentially making an interest-free loan to the IRS. Rather than wait until you file your 2015 tax return in 2016, why not begin enjoying your “refund” now by reducing your withholdings or estimated tax payments for the remainder of 2015? It’s particularly important to […]

Tax impact of the Supreme Court’s same-sex marriage decision
July 7, 2015 Knowledge Center
Tax impact of the Supreme Court’s same-sex marriage decision

On June 26, the U.S. Supreme Court ruled that same-sex couples have a constitutional right to marry, making same-sex marriage legal in all 50 states. For federal tax purposes, same-sex married couples were already considered married, under the Court’s 2013 decision in United States v. Windsor and subsequent IRS guidance — even if their state […]