How many of you build, track and utilize credit card points for personal benefit? It’s a great tax strategy
I often times get asked the question regarding the ability to write-off clothing and and laundry expenses.
You thought it was the Holiday Season, but it’s actually “Health Insurance Season”.
This new program allows states to establish tax-exempt “Achieving a Better Life Experience” (ABLE) accounts, which are tax-free accounts that can be used to save for disability-related expenses.
Essentially, just for 2014, we return back to the $500,000 Section 179 limit and the $2 million overall investment limit for this tax year. This also includes the prior rules that the taxpayer can’t deduct 179 depreciation in excess of profit.
I was recently in New York at the Entrepreneur Conference sponsored by Cannon and I was shocked at the discussions and excitement around Crowdfunding. We have known this is the newest form of raising capital for small businesses and start-ups, yet much of the country has been waiting for the Final Regulations from the SEC.
For example, this year (2014) your spouse could contribute up to $17,500 (or $22,500 if over 55) and your Company take a tax deduction for the W-2, while your spouse doesn’t claim any income on the W-2. The exact paycheck to the spouse, and deductible to the Company, is actually $20,178 (for a deferral of $17,500), because the company must withhold and match FICA of 7.65%, for a total of 15.3%. Nonetheless, the ultimate tax benefit is significant due to the ‘time value of money’ and the opportunity of the spouse to create and fund a 401k.