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Are you looking for a tax-smart way to get money out of your business? Stock redemptions convert corporate ownership interests into cash. Shareholders in closely held corporations may want to consider redeeming their shares sooner rather than later to take advantage of today's historically low tax rates while they last. This article explains how this strategy works.
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The idea of self-employment is attractive for many people. Deductible business expenses can greatly reduce taxable income, but there's still self-employment tax to pay. Regardless of your employment status, if you also have "other income," you must be aware of the related tax treatment. This article reviews a case that recently made its way through the U.S. Tax Court on the issue of other income.
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Can you write off bad debt losses from loans to family, friends, business associates and your employer for federal income tax purposes? Individual taxpayers who meet specific criteria may qualify for these deductions, but they might have to convince a skeptical IRS. Here's some guidance on the issue.
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There are many good reasons for small business owners to hire trusted family members. In addition to having them participate in the family business, your relatives may receive tax breaks and saving opportunities. Your business can come out ahead, too. With summer coming up, here's some guidance if you're thinking about hiring your children, your spouse or other relatives.
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Many people don't contribute enough to 401(k) plans when they're young. Fortunately, catch-up contributions enable older plan participants to make up some lost ground later in their careers, and the SECURE 2.0 Act recently enhanced these rules. This article explains the basic contribution rules for 401(k)s and provides some details about proposed IRS guidance for certain contributions.
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The mounting cost of college is causing many young people to start life with a tremendous financial burden. The average student loan debt for recent graduates who took out loans was approximately $29,300, according to a 2024 College Board report. Here are eight practical tips to help families get a handle on student loans during the college years and after graduation.
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Partnerships have specific federal income tax reporting requirements. Co-owners that didn't intend to operate as a partnership sometimes may be considered partners for tax purposes. This may result in unexpected filing obligations and costly penalties for noncompliance. Here's some guidance for determining whether a business or investment arrangement is a partnership for federal income tax purposes.
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Understanding federal tax laws and planning year-round can help maximize savings and prevent errors. Unfortunately, many taxpayers unknowingly fall for common tax misconceptions that can lead to costly mistakes, missed deductions and increased IRS scrutiny. This article reveals the truth behind 10 common federal tax myths to ensure you make the most of your tax strategies.
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Business owners with employees could have to personally pay a harsh tax penalty if they aren't careful. It's called the Trust Fund Recovery Penalty, and it applies to the Social Security and income taxes required to be withheld by a company from its employees' wages. This article examines the risk and explains how business owners, managers and other parties can avoid penalties.
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Are you looking for a last-minute strategy to lower your tax obligation for 2024? Many types of retirement plans allow you to make deductible contributions after year end. So you may still have time to contribute to a plan even if it's set up in 2025. Here are the details to help determine whether this tax-saving strategy might work for your situation.
