Suppose you are considering two investments. One is tax-exempt and the other is taxable. Which should you choose? Make the Comparison The first thing you should determine is the taxable investment’s after-tax yield. If two investments are offering the same rate of return and are of equal quality, you’re better off with the tax-exempt investment. […]
What You Need to Know about IRAs and Taxes
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 All funds withdrawn from a traditional IRA are taxed […]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 […]