Do You Want to Withdraw Cash From Your Closely Held Corporation at a Low Tax Cost?
Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent…
One Reason to File Your 2020 Tax Return Early
As of February 12th, the IRS has opened the 2020 individual income tax return filing season. (This was later than in past years because of a new law that was enacted late in December.) Even if you typically don’t file until much closer to the…
For Now, California Says No Deduction for Expenses Paid with Forgiven PPP Funds
On December 27, 2020, the President signed into law the Additional Coronavirus Response and Relief Act. Among other items, ACRRA clarified the tax treatment of deductible expenses paid from Paycheck Protection Program (PPP) loan funds by nullifying the previous administrative guidance from the IRS and…
Taking Distributions From a Traditional IRA
Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the fine points of…
Buying and Selling Mutual Fund Shares: Avoid These Tax Pitfalls
If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares. Surprise sales You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way this can happen is if your…