H&B, Author at Hutchinson and Bloodgood LLP

Deciding When to Transfer Wealth: Factors to Consider

Illustration of a hand holding a bag of money over another hand that is outstretched on a light blue background

June 30, 2023

Should you transfer wealth during your lifetime or transfer it to heirs after your death? Answering this question can be complicated because many factors are involved. For example, you might want to take advantage of the inflation-adjusted $12.06-million gift and estate tax exemption now, since the exemption amount is scheduled to be cut approximately in […]

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Tax Planning

The Trust Fund Recovery Penalty: Who can it be personally assessed against?

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June 29, 2023

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If you own or manage a business with employees, there’s a harsh tax penalty that you could be at risk for paying personally. The Trust Fund Recovery Penalty (TFRP) applies to Social Security and income taxes that are withheld by a business from its employees’ wages. Sweeping penalty The TFRP is dangerous because it applies […]

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Tax Planning

Hiring family members can offer tax advantages (but be careful)

Workers In Family Business Standing Next To Van

June 23, 2023

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Summertime can mean hiring time for many types of businesses. With legions of working-age kids and college students out of school, and some spouses of business owners looking for part-time or seasonal work, companies may have a much deeper hiring pool to dive into this time of year. If you’re considering hiring your children or spouse, […]

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Retirement Planning

Are you married and not earning compensation? You may be able to put money in an IRA

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June 22, 2023

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When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made […]

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Business Planning & Consulting

In financial planning, forecasts and projections aren’t the same

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June 15, 2023

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Businesses are rightly encouraged to regularly generate professionally prepared financial statements. Doing so is important for both understanding your own financial position and providing accurate, comprehensive information to stakeholders such as investors, lenders and advisors. However, keep in mind that financial statements are historical records. They depict the state of the company at a given point […]

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Tax Planning

When can seniors deduct Medicare premiums on their tax returns?

Calculator with read out MEDICAIRE on top of dollar bills next to a spilled bottle of pills

June 13, 2023

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If you’re age 65 and older and have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially for married couples with both spouses paying them. But there may be an advantage: You may qualify for a tax break for paying […]

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Business Planning & Consulting

Got a “Business” Idea? You Might Want to Form a Nonprofit

Beautiful Business Woman Owner Selling Online Using Tablet To Chat With Customer.

June 12, 2023

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Do you have an idea for a new venture with social benefits or environmental applications? You can set up as a for-profit entity — such as a C corporation, S corporation or limited liability company — with charitable functions. Or, if your key objectives are more altruistic, you may want to consider an alternative: forming […]

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Estate Planning

Ways to Secure Your Estate Plan

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June 8, 2023

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Estate planning isn’t just for the rich and famous. For example, you may have family heirlooms (such as jewelry or artwork) or real property that has sentimental value to certain family members. Wills and trusts can help ensure that your estate is divvied up fairly after your passing. But you won’t be around to explain […]

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Payroll

10 Payroll Issues for Small Businesses

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June 7, 2023

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You may not think of your small business’s payroll function as risky. But if you don’t properly handle certain payroll challenges, you may risk IRS scrutiny, operational disruptions and financial losses. What should you watch out for? Here’s a list of 10 payroll issues small organizations must grapple with. 1. Accurate recordkeeping. If you don’t keep […]

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Tax Planning

Reduce the impact of the 3.8% net investment income tax

Net Investment Income with three blocks that spell TAX

June 6, 2023

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High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some ways you may be able to reduce its impact. Affected taxpayers The NIIT applies to you only […]

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Author: H&B

Deciding When to Transfer Wealth: Factors to Consider

The Trust Fund Recovery Penalty: Who can it be personally assessed against?

Hiring family members can offer tax advantages (but be careful)

Are you married and not earning compensation? You may be able to put money in an IRA

In financial planning, forecasts and projections aren’t the same

When can seniors deduct Medicare premiums on their tax returns?

Got a “Business” Idea? You Might Want to Form a Nonprofit

Ways to Secure Your Estate Plan

10 Payroll Issues for Small Businesses

Reduce the impact of the 3.8% net investment income tax

A Comprehensive Approach to Goal-Based Financial Planning