Business Accounting Systems Inc

2 ACA taxes that may apply to your exec comp

admin — Sun, 22 Oct 2017 20:28:50 +0000

2 ACA taxes that may apply to your exec comp If you’re an executive or other key employee, you might be rewarded for your contributions to your company’s success with compensation such as restricted stock, stock options or nonqualified deferred compensation (NQDC). Tax planning for these forms of “exec comp,” however, is generally more complicated […]

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Which tax-advantaged health account should be part of your benefits package?

admin — Sun, 22 Oct 2017 20:20:25 +0000

Which tax-advantaged health account should be part of your benefits package? On October 12, an executive order was signed that, among other things, seeks to expand Health Reimbursement Arrangements (HRAs). HRAs are just one type of tax-advantaged account you can provide your employees to help fund their health care expenses. Also available are Health Savings […]

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Accelerate your retirement savings with a cash balance plan

admin — Sun, 22 Oct 2017 17:18:11 +0000

Accelerate your retirement savings with a cash balance plan Business owners may not be able to set aside as much as they’d like in tax-advantaged retirement plans. Typically, they’re older and more highly compensated than their employees, but restrictions on contributions to 401(k) and profit-sharing plans can hamper retirement-planning efforts. One solution may be a […]

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“Bunching” medical expenses will be a tax-smart strategy for many in 2017

admin — Sun, 22 Oct 2017 17:11:20 +0000

“Bunching” medical expenses will be a tax-smart strategy for many in 2017 Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only if they exceed that floor (typically a specific percentage of your income). One example is the medical expense deduction. Because it can […]

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Timing strategies could become more powerful in 2017, depending on what happens with tax reform

admin — Sun, 22 Oct 2017 17:02:24 +0000

Timing strategies could become more powerful in 2017, depending on what happens with tax reform Projecting your business income and expenses for this year and next can allow you to time when you recognize income and incur deductible expenses to your tax advantage. Typically, it’s better to defer tax. This might end up being especially […]

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Investors: Beware of the wash sale rule

admin — Sun, 22 Oct 2017 01:57:02 +0000

Investors: Beware of the wash sale rule A tried-and-true tax-saving strategy for investors is to sell assets at a loss to offset gains that have been realized during the year. So if you’ve cashed in some big gains this year, consider looking for unrealized losses in your portfolio and selling those investments before year end […]

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2 ways spouse-owned businesses can reduce their self-employment tax bill

admin — Sun, 22 Oct 2017 01:49:56 +0000

2 ways spouse-owned businesses can reduce their self-employment tax bill If you own a profitable, unincorporated business with your spouse, you probably find the high self-employment (SE) tax bills burdensome. An unincorporated business in which both spouses are active is typically treated by the IRS as a partnership owned 50/50 by the spouses. (For simplicity, […]

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Why you should boost your 401(k) contribution rate between now and year end

admin — Sun, 22 Oct 2017 01:33:38 +0000

Why you should boost your 401(k) contribution rate between now and year end One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step. If you’re not already contributing the maximum […]

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Should your business use per diem rates for travel reimbursement?

admin — Sun, 22 Oct 2017 01:20:16 +0000

Should your business use per diem rates for travel reimbursement? Updated travel per diem rates go into effect October 1. To simplify recordkeeping, they can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. Per diem advantages As long as employees properly account for their business-travel expenses, […]

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Save more for college through the tax advantages of a 529 savings plan

admin — Sat, 21 Oct 2017 21:41:31 +0000

Save more for college through the tax advantages of a 529 savings plan With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. One option, which can be especially beneficial if the children in question still have many years until they’ll be starting their higher education, is […]

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