2020 Tax Facts – 2 Year Comparison

  2020 Tax Facts – 2 Year Comparison. Here’s is a quick review of some of the tax changes you’ll see from 2019 to 2020 as a result of inflation adjustments and new tax laws. Provision 2019 2020 Business equipment Sec. 179 expensing deduction $1,020,000 $1,040,000 Total purchase limit for full Sec. 179 expensing deduction $2,550,000 $2,590,000 Standard mileage rate: business 58¢ per mile 57.5¢ per mile Standard mileage rate: medical/moving 20¢ per mile 17¢

Review IRA Beneficiaries Now

Review IRA Beneficiaries Now. Lost in the pandemic is a tax law change that may require your attention Lost in the media storm during the coronavirus pandemic is a law change enacted in late 2019 that eliminates an IRA withdrawal technique known as the stretch IRA. Here is what you need to know: Time to review beneficiaries While the chances of you having a severe reaction to the coronavirus are low, it is a reminder of

Required Minimum Distributions waived In 2020

Required Minimum Distributions (RMDs) waived in 2020. This includes Traditional, SEP, and SIMPLE IRAs, and employer plans such as 401(k)s, 403(b)s and governmental 457(b)s. 403(b)s and governmental 457(b)s. If you already took your RMD for 2020 and wish to return those funds to the account to avoid paying tax, there are two options: If the initial distribution was taken within the last 60 days, you may return the funds to the account as a 60-day

14 Year End Tax Tips to Consider

Planning ahead  is a good idea when it comes to adopting a strategy to reduce your taxes. But for some people, time just gets away from them. So with that being said here are 14 year end tax tips to consider: 14 Year End Tax Tips to Consider: 1. Review income and deductions. It’s all in the timing. The most fundamental year-end tax move is to adjust the timing of income and deductions. If your income is

The Importance of Understanding IRA Beneficiary Selection

The Importance of Understanding IRA Beneficiary Selection. Anyone or anything can generally be the beneficiary of your retirement assets such as IRAs, 401(k)s and annuity contracts. It doesn’t have to be a relative and yes, you can name your dog or your alma mater! Choosing the proper beneficiaries is not always as simple as it seems and many people do not realize what the consequences can be. For example, an ailing client asked if he could

Are you sitting on a tax-deferred time bomb?

If you have money in a tax-deferred retirement account such as a 401(k), IRA or 403(b), you’re sitting on a tax time bomb. Here’s why… Conventional wisdom says, “Maximize your contributions to tax-deferred plans. Your money compounds without being reduced by taxes and you’ll end up with more money during retirement.” But like much conventional wisdom about personal finance, it’s baloney. The Society of Actuaries says if tax rates remain the same, “It doesn’t make any

Qualified Charitable Deduction requirements

Take advantage of the Qualified Charitable Deduction (QCD) with your Required Minimum Distribution (RMD). The requirements for the Qualified Charitable deduction are as follows: The IRA owner must be at least age 70 ½ The maximum dollar amount is limited to $100,000 Only distributions from an individual IRA (including a rollover IRA) are eligible The distribution must go directly by check made specifically to a public charity. It cannot go to a private foundation, nor