Most Recent Attorney’s Blog Posts

  • Entertainment Expense is Gone in 2018
    Yes…you read it correctly.  There are a lot of benefits for the small business owner in the Tax Cuts and Jobs Act, but this isn’t one of them. It truly is a major blow to small and big business, and the cost of doing business just went up.        Example. Tom is an insurance agent and small business consultant. He takes one of his clients golfing and out to lunch to give guidance on a business transaction and sell an insurance policy.        Write-off? Nope. Because the activity occurred in 2018, Tom gets no deduction and arguably ... read more
    Source: Mark J KohlerPublished on 2018-01-16By Mark J. Kohler
  • 2017 Solo 401(k) Contribution Deadlines and Mechanics
    As 2017 comes to an end, it is critical that Solo 401(k) owners understand when and how to make their 2017 contributions. There are three important deadlines you must know if you have a Solo 401(k) or if you plan to set one up still in 2017. A Solo 401(k) is a retirement plan for small business owners or self-employed persons who have no other full time employees other than owners and spouses. It’s a great plan that can be self-directed into real estate, LLCs, or other alternative investments, and allows the owner/participants to contribute up to $54,000 per year ... read more
    Source: Mat SorensenPublished on 2018-01-15By Mathew Sorensen
  • Has the Estate Tax been Repealed and What about the Gift Tax?
    There has been a lot of talk about the myriad of tax law changes with the passage of the “Tax Cuts and Jobs Act” (TCJA), but let’s not forget about the estate tax. Although the House of Representatives’ version of the recent tax bill had included language to repeal the federal estate tax in its entirety by the year 2025, the final version that was signed by President Trump did not repeal the estate tax. Instead, the TCJA doubled the estate tax exemption from $5.49 Million to $11.2 Million (taking into account inflation). Of course, the average American’s net worth is ... read more
    Source: Mark J KohlerPublished on 2018-01-03By Mark J. Kohler
  • 1099 Rules for Business Owners in January 2018
    Over the past few years there have been a number of changes and updates regarding the reporting rules for the mysterious 1099-Misc Forms.  I say “mysterious” because many business owners simply guess as to what the rules are and oftentimes get exasperated and just give up choosing to file nothing at all.  This can be a dangerous result as the penalties can add up quickly. First, the general rule is that business owners must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or ... read more
    Source: Mark J KohlerPublished on 2018-01-02By Mark J. Kohler
  • How the New GOP Tax Law Affects Owners and Investors of Real Estate
    Real estate has always been a major step in achieving the American dream and so there was plenty of concern within the industry that major changes in the taxes affecting owners and investors of real estate would negatively impact the industry and the tax benefits of owning real estate.   While the final tax changes are expected to diminish the tax benefits for some owners such as:  homeowners who take out mortgages above $750K, homeowners using home equity lines of credit, or homeowners in certain markets with high state tax, the overall impact on real estate, in our opinion, is ... read more
    Source: KKOSLawyersPublished on 2017-12-28By Lee Chen
  • GOP Delivers Tax Reform for Christmas – Joy to the World for Individuals?
    Well, folks – it’s finally here.  Congressional Republicans spent most of the fall crafting, arguing over, and adding and deleting provisions from a sweeping tax reform bill, and President Trump just signed it into law (and held up his huge signature to the cameras).  It’s the first significant legislative achievement of The Donald’s presidency and the first major overhaul of the tax code since 1986.  Also, just like Obamacare in 2010, the new tax law passed without a single vote from the minority party.  In contrast, the 1986 tax law passed with a simple “voice vote” in the House, ... read more
    Source: KKOSLawyersPublished on 2017-12-27By Jarom Bergeson
  • GOP Tax Reform and Retirement Accounts
    Its official: We have tax reform. But, how does it affect your IRAs, 401(k)s, 529s, Coverdells, and other retirement and education savings accounts? Let’s break down what’s new, what was proposed and didn’t make it, and what stays the same. New Changes for 2018 There are two major changes effecting retirement, health, and education savings accounts in the bill: 1. Roth re-characterizations are dead. Account holders will no longer be able to conduct what is known as a Roth re-characterization. A Roth re-characterization occurs when you convert from a Traditional IRA to a Roth IRA, and then later decide that ... read more
    Source: Mat SorensenPublished on 2017-12-22By Mathew Sorensen
  • The Seven “Tenets” of Dealing with Tenants: Tax and Legal Tips for Landlords
    I realize rentals are not for everyone.  You hear horror stories of trashed properties, non-paying tenants, city citations, “meth-lab rentals”, and the list goes on.  But for every such story, there are many stories of those who have built massive wealth through owning rental real estate.  Of course, you can invest in real estate through REIT’s, but this article is for those who want direct ownership whether it’s a single-family residence, a duplex, or commercial/retail buildings.  If this is you before you take the plunge into owning investment real estate, consider these Seven “Tenets” of Dealing with Tenants: Put the ... read more
    Source: KKOSLawyersPublished on 2017-12-19By Kevin Kennedy
  • Purchasing Homeowner’s Insurance- Strategies & Pitfalls
    People who have read Mark Kohler’s Lawyers are Liars know that our philosophy with respect to asset protection is the “multiple barrier approaches” to put as many barriers as you can between you and someone who would sue you.  For owners of real estate, one of primary asset protection barriers is your homeowner’s insurance policy. No insurance policy will cover all risks under any circumstance, and so it is important for owners of real estate to request, understand and procure the right policy for their situation.   Unfortunately, getting the right policy tailored your situation may not as easy as ... read more
    Source: KKOSLawyersPublished on 2017-12-13By Lee Chen
  • Tax Planning for Bitcoin and Other Cryptocurrency Profits
    Bitcoin, Ethereum, Litecoin, and other cryptocurrencies have seen dramatic price increases this year. Have you thought about cashing in? Are you wondering how will you be taxed? Cryptocurrency is a Capital Asset The IRS has clearly stated that cryptocurrency (aka virtual currency) is a capital asset like property. And therefore, the buying and selling of it for profit results in short-term capital gain if held for under one year, and long-term capital gain if held for over a year. Short-term capital gain rates are based on your regular income tax bracket, while the long-term capital gains rate is 15-20%, depending ... read more
    Source: Mat SorensenPublished on 2017-12-12By Mathew Sorensen
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