Tax deferral is a key benefit of investing in a traditional individual retirement account (IRA). But the tax law doesn’t allow indefinite tax deferral. Starting at age 70½, IRA owners must withdraw a minimum amount — called a required minimum distribution, or RMD — every year. All funds withdrawn from a traditional IRA are taxed […]
Tax Rules for Selling Inherited Property
Sooner or later, you may decide to sell property you inherited from a parent or other loved one. Whether the property is an investment, an antique, land, or something else, the sale may result in a taxable gain or loss. But how that gain or loss is calculated may surprise you. Your Basis When you […]
Determining a Succession Plan for Your Business – Before You Need It
You’ve devoted time and money and poured heart and soul into building a successful family business. But do you have a succession plan? If not, you should. Without a plan for transferring your business to the next generation, anything could happen. Deciding on Your New Role Start by deciding how much or how little you […]
Four Ways to Control Business Costs
Increasing your profits requires selling more and/or spending less. While building up your sales may require an extended effort, business costs are often very ripe for a quick trimming. Here are some possibilities. Supplies and Other Purchases Usually in any business, relatively few items represent a very large share of all outlays. The first step […]
The Rental Route
Buy or lease? It’s a decision many small businesses face. Owning real estate certainly can have advantages, including the opportunity to build equity. But many small businesses in need of space choose the rental route instead. Cash Flow Considerations By leasing, a company can avoid taking on debt to acquire a property. Less debt on the balance sheet […]
Tax-smart Ways To Take Cash Out of Your Corporation
Owners of closely held C corporations are often interested in withdrawing profits from their companies in ways that minimize taxes. What are the options? Pay Salary/Bonus. If the owner is a company employee, taking more salary or a yearend bonus is an option, as long as the total amount of compensation the owner receives is reasonable. The company […]