Summer is a good time to do business entertaining. Meet the rules and you can deduct 50% of the cost.
If you and your spouse work, the cost of sending your children to a summer day camp may qualify for the child care credit.
Combine business and pleasure on a trip this summer and you can deduct the travel costs and other business-related costs.
The number of days you use your vacation home affects the tax deductions you can take on the property.
If your boat or recreation vehicle has sleeping space, a bathroom, and cooking facilities, it might qualify for tax deductions as a second home.
Before you accelerate payments on your home mortgage, consider other uses for that cash. Do you have other higher interest rate loans?
Document money transactions between you and your company (salary, rental payments, loans) as you would with an outsider.
If you have self-employment income, consider setting up a “solo” 401(k) or a Simplified Employee Pension (SEP).
Your smart phone may contain more personal financial information than your desk top computer. Protect it from criminals who “phish.”
Start saving early. Save 10% from every dollar. Those who start at age 25 have nearly double the $ at age 65 over those starting age 35.
$500 per month invested for 40 years ($240,000) will accumulate to $760,000 at 5%. Don’t wait to start saving.
It is common for those who earn $50,000 per year to spend it all. Sadly, most of those who earn $100,000 also spend it all.
Do you think you can’t save 10% of current earnings? Suppose you lost your job and the new job paid 10% less. Start saving 10% NOW.
Borrowing from your company retirement plan will have no tax consequences if set up properly and repaid on time.
Don’t buy or start a business outside your area of expertise. Many a family inheritance has been wasted while learning a business.
If you are planning to sell business or investment property and acquire another, consider a tax-deferred exchange. No current tax bill.
If you donate a vehicle worth over $5,000 to charity, an independent appraisal is required by the IRS.
Don’t decide on either a lump sum or a retirement annuity until you have explored all the options in light of your financial condition.David Bradsher, CPA