Author: prosperousim

It’s time…

As some of you know, and others of you fear, October 15th is just a few weeks away.  In our office, the significance of October 15th is that it is the date that individuals who filed extensions must complete their tax returns.  There are many reasons to file on time, but I’m going to touch briefly on three of them today, since I need some time to complete my own return (kidding, I’m just kidding). The Late Filing Penalty The Internal Revenue Code is full of rules that penalize taxpayers for non-compliance.  If you don’t file by October 15th, the IRS will assess a late filing...

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The Need for Tax Planning

Sometimes you get a good result by just showing up, but other times, a little bit of planning goes a long way toward achieving your goal.  We plan our day through the use of a calendar, our meals by making a grocery list, and our spending by the use of a budget.  If one of your goals is to minimize your income tax, why not plan for that as well? How do we plan for your taxes?  We look at your income and your deductions; and we ask a lot of questions. Do you have any opportunities to shift...

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Tax Planning for Small Business Owners

Tax planning is the process of looking at various tax options to determine when, whether, and how to conduct business and personal transactions to reduce or eliminate tax liability. Many small business owners ignore tax planning. They don’t even think about their taxes until it’s time to meet with their accountants, but tax planning is an ongoing process and good tax advice is a valuable commodity. It is to your benefit to review your income and expenses monthly and meet with your CPA or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits...

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Changing Jobs? Don’t Forget your 401(k)

One of the most important questions you face when changing job is what to do with the money in your 401(k). Making the wrong move could cost you thousands of dollars or more in taxes and lower returns. Let’s say you put in five years at your current job. For most of those years, you’ve had the company take a set percentage of your pre-tax salary and put it into your 401(k) plan. Now that you’re leaving, what should you do? The first rule of thumb is to leave it alone because you have 60 days to decide whether...

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