During the year, Michelle paid down her car loan by $5,000 and her school loan by $3,000. She also contributed $5,000 cash from her checking account to an IRA. Michelle’s investment account grew by $10,000 during the year. How much did Michelle’s net worth increase for the year?$8,000$13,000$18,000$23,000 Click to Reveal the Answer C [...]
The 20% Qualified Business Income Deduction – Congress Denies the Deduction to Certain Successful Business Owners
In Part 1 of this 4-part series, we introduced the extraordinary power of the Qualified Business Income (QBI) deduction to slash your business owner client’s taxes by as much as 20%. We ended Part 1 with a heads-up that restrictions apply. We’ll take a close look at a key restriction in this article - Part [...]
Student Question of the Week Course :Insurance Planning Lesson :17 – Business Uses of Life and Disability Insurance Student Question: Under the Stock Redemption method – how is basis treated specifically to stock remaining outstanding (not treasury stock) and how does this compare to the Cross Purchase method? Is basis [...]
Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy? $10,000 of rent he owes his landlord $20,000 of taxes he owes the [...]
Student Question of the Week Course :Estate Planning Lesson :7 – Transfer Taxation IV – Generation Skipping Transfers Student Question: Wouldn't Ellen be a non-skip person since Jane is deceased and she bumps up the ladder one step to be just one generation behind?? (Question below, in which Ellen is identified as [...]
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for [...]
We lost the deduction for personal and dependency exemptions starting in 2018 under the Tax Cuts and Job Act. With the loss of the deduction, many taxpayers rightly ask, “Should I even bother documenting and claiming my dependents on my tax return?” That a reasonable question and the answer is… YES for many taxpayers. Claiming [...]
Student Question of the Week Course :Investment Planning Lesson :9 – Fixed Income Securities Student Question: I don't clearly understand how money is made in the mortgage-backed bond process. What are mortgage pools? Does the investor make money from the interest of the pooled mortgages? What if the mortgages default? Thanks! [...]
Hi – I know that the Miscellaneous Deduction has been suspended therefore reimbursed employee mileage is no longer deductible. Can individuals still deduct mileage related to medical and charitable travel? If so, how is this deduction taken?
Conventional wisdom says that sole proprietorships, partnerships, Sub-S Corporations and certain LLCs (“pass-through” business structures) should strongly consider converting from their present business form into a C Corporation (C Corp). Why? The 21% C Corp income tax rate from the Tax Cuts and Jobs Act can be seductive, especially when personal income tax rates can reach as high as 37%. Like many temptations, the rush to a C Corp may be a good one to resist. Here’s why...