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Posted on Friday, September 14, 2018

Every year the IRS gets together and starts looking at economic news and forecasts and works with several departments of the government to tweak our tax code.  They look at the leading economic indicators, they decide what they need to change, and the collection of tax revenue often changes by year end.  Will they do that this year after the most sweeping changes in a very long time?  In the past, they would create a lot of  temporary tax rules to steer the ship, but it’s a new course and we have only been sailing a short time! These new rules will be a very big surprise to many Americans, both winners and losers, as next year’s tax collection shakes...

The post A Timely Warning About One of Trump’s Tax Changes appeared first on Tax What If Doctor.

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Posted on Friday, September 07, 2018

If you have an S Corp based business then you are seven short days from your last deadline.  You can’t extend the extension, so what if you’re still just not able, what do you do?  Technically, you should be ready to file, so you’ll get no sympathy from Uncle Sam unless you fall under very rare special circumstances.  In a nationally declared disaster area, deployed in the military under certain special circumstances and a few other super rare groups.  Chances are very high that you don’t get more time, so what to do?  The penalty for not filing is substantial.  However, the penalty for making an error and having to amend later is zero.  S Corp returns give their owners a K-1,...

The post The Tax Filing Deadline for S Corps on Extension is Fast Approaching appeared first on Tax What If Doctor.

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Posted on Friday, August 31, 2018

With fall in the air, it’s time to start thinking about things that need to be done to prepare for winter.  The garden harvests are rolling in, fresh vegetables are everywhere and it’s really, really great.  Time to fill up your oil tanks before the price change, and at least know where those snow tires are in the back of the garage.  It’s also time for tax planning. There are so many things in the tax code that have time limitations.  It’s really time to check in with yourself if you want to actually participate in your bill with the IRS.  Taxes can be very much within people’s control, even though they don’t feel that way.  If you’re still out on extension, heads up — you...

The post “Fall” into Tax Savings for next year! appeared first on Tax What If Doctor.

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Posted on Friday, August 10, 2018

Many people don’t really think about their taxes until the snow is flying and the first document arrives in the mail.  Why would you, right?  Year in and year out people often get into a set of habits around getting things together for their preparer.  That`s usually not a bad thing, but in a year like 2018 when so many things have changed we see on the horizon a sea of surprised faces when they find out their usual $1,200 refund is now a $500 balance owed to the IRS.  Or their usual $1,000 tax bill is now $1,900.  Of course, like any changes there will also be winners receiving happy surprises.  But what side will you be on?  If...

The post Are You Changing Your Behavior to Match the New Tax Rules in Effect Now? appeared first on Tax What If Doctor.

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Posted on Friday, August 03, 2018

First, let’s say upfront that a business that has sources of income and expenses and leaves 25% profit on the table is an awesome business!  Example: A Plumber makes $400,000 a year and spends $300,000 a year on plumbing tools, trucks, repairs, staff, insurances, etc., and walks away with $100,000 at the end of the year that he can put in his pocket; great business!  It would be rare that it’s that easy.  More likely, he puts $60,000 in his pocket and sneaks a few personal expenses into his plumbing books.  In a very rare case in the other direction, 50% in expenses and 50% profit, but he probably wouldn’t do that every year.  That would be a “magic year” with no repairs to fleet vehicles, no staff turnover,...

The post Helping Clients Not Pay Tax on a Type of “Phantom Income” appeared first on Tax What If Doctor.

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Posted on Friday, July 27, 2018

The tax code is much more fluid than the public is truly aware of and deductions and credits come and go all the time.  Deductions like mileage for business owners change with the cost of gasoline, for instance, and can go up and down annually.  Often, it is actual programs that come and go, like energy tax credits or being able to transfer an IRA to a charity directly without paying income tax but still satisfying RMD requirements.  Often, these programs are temporary, and depending on whether the government believes that they have met their objectives, sometimes expire, or may become permanent.  Capital Gains has remained on sale!  It’s been changed over the years, but under the original Bush tax...

The post Does the IRS Really Have “Yard Sales?” Yes, All The Time! appeared first on Tax What If Doctor.

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Posted on Thursday, July 12, 2018

The IRS just gave guidance that a nondeductible IRA may still in fact be converted into a Roth IRA.  For those who didn’t know about that planning strategy in the past, at a certain level of income people were no longer allowed to deduct their IRA contributions.  Many advisors thought that the rule was that the higher income earner could not open an IRA, which was incorrect.  You simply lost the ability to deduct them. Why would I open an IRA that I could not deduct?  It was still tax deferred growth after it was opened, so a “tax deferred annuity” that could be invested in any way an IRA could be.  Later, with the creation of a Roth IRA...

The post Finish Line 2025 a Marathon for Tax Planners and Their Clients appeared first on Tax What If Doctor.

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Posted on Friday, June 29, 2018

In May, people will be filing there 2018 Tax Return in another 7 months with a recurring Moooooan and Grooooooan. Now is the time to take your preventative medicine and avoid the pain! We all form habits, we are human. We try to develop good ones to replace the bad ones and often we are successful but most successes don’t come without a coach, cheerleader or some kind of support. Tax Time is usually a time of regret over not being successful at last years promise to oneself, “I not going to pay this much again, I`m going to keep better records and search out a Tax plan or some professional help and get smarter about this!” Then summer comes...

The post Summer is the Time to Fix your Income Tax Problem! appeared first on Tax What If Doctor.

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Posted on Friday, June 15, 2018

There is so much good in the business world from the new tax laws that we feel bad to even mention this, but we did lose some deductions that had become automatic in so many minds that we feel we must! As business people ourselves and for as long as we can remember, taking a client or prospect out to eat or to a round of golf or a concert has always been how business is done!  Then tax deducting it is also how business got done…NOT ANY MORE!  It’s time to review the old and new tax rules, and perhaps nothing changes, as business getting done first always trumps (no pun intended), and deducting it was a pleasant after-effect.  Perhaps the fact that deducting meals with prospects was allowed you to splurge...

The post Remember Client/Prospect Meals and Fun are Largely No Longer Deductible! appeared first on Tax What If Doctor.

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Posted on Friday, June 08, 2018

It is soon to be celebration time all across the U.S.  Our Independence Day, our birthday is on the horizon.  It is summer, Veterans day and Memorial Day and even the 4th of July make us all think about all of the sacrifices that were made to get us here.  We are very, very thankful.  Everyone should be.  When celebrating most folks focus more about everything that happened in the Colonial period.  The Revolutionary War was the gateway to our independence.  The desire for independence was fought over many things but mainly about taxation.  The Boston Tea Party and many parts of the revolution were spurred in part from being levied and taxed on every single thing that we did.  The quote “taxation without representation is tyranny” was...

The post Financial Fireworks and the 4th of July. appeared first on Tax What If Doctor.

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