The SEP-IRA – A Pension Plan in an IRA Body

Year-end is great time for tax planning. Unfortunately, many small business owners are so busy in December that we don’t get around to tax reduction strategies until after year-end.

Since most small businesses are cash basis taxpayers, expenses are generally deductible in the year paid.  When we meet at tax time, there are few strategies that can “look back” at the prior year and still reduce taxes.

Continue reading “The SEP-IRA – A Pension Plan in an IRA Body”

Health Savings Accounts – Bigger & Better

Health care costs have continued to skyrocket.  There seems to be little that small business owners and others paying for their own health insurance can do other than gritting our teeth and tightening our belts. 

Health Savings Accounts (HSA’s) are one of the few ways that we can fight back against rising health care costs.  A Health Savings Account is a custodial account set up with a qualified HSA trustee to pay or reimburse you for medical expenses you incur.  You must be an eligible individual (see below) to qualify for an HSA. A qualified HSA trustee can be a bank, an insurance company or anyone approved by the IRS to be a trustee of an IRA. 

The benefits of a Health Savings Account are significant.

Continue reading “Health Savings Accounts – Bigger & Better”

QBI Deduction for Rental Real Estate – Opportunity Knocks, but Tread Carefully

The Tax Cuts & Jobs Act offered businesses the most significant tax cuts in a generation.  C corporations saw their maximum Federal tax rate cut almost in half from 39% to 21%. Partnerships, S corporations and sole proprietorships also received significant tax relief in the form of a 20% tax deduction for Qualified Business Income.  When the law passed, many of us had one question – does the IRS consider rental real estate a business that qualifies for the QBI deduction?

Continue reading “QBI Deduction for Rental Real Estate – Opportunity Knocks, but Tread Carefully”

Can I still deduct interest paid on my home equity loan?

I had a client call me last week that was concerned about a home loan he was taking out. “My loan broker told me interest on home equity loans is no longer tax deductible. Is that true?” Continue reading “Can I still deduct interest paid on my home equity loan?”

Can I Hire My Kids in My Business? Absolutely!


I am often asked by business clients, “Is there any benefit to hiring my children in my business?”  The answer is, “Absolutely yes!!!!”

Hiring children in a family business often provides valuable work experience to children.  Many business owners would love to transfer a successful family business to the next generation.  Starting early allows the children “get their feet wet.”  The business owner can also assess whether the child has the ability and the desire to succeed.

But more than that, there are substantial tax benefits to hiring your children in a family business: Continue reading “Can I Hire My Kids in My Business? Absolutely!”