Most Recent Attorney’s Blog Posts

  • Forbes Article on Complex Self Directed IRA Rules
    A recent article on Forbes by Bryan Ellis outlines the importance in making sure you understand self-directed IRA rules before you invest. Check out the excellent article and a quote from yours truly here. Also, Bryan has a significant amount of additional resources on his self-directed IRA website which you can access here.   The post Forbes Article on Complex Self Directed IRA Rules appeared first on Self-Directed IRA Handbook. ... read more
    Source: Mat SorensenPublished on 2017-11-16By Mat Sorensen
  • Republican Tax Reform Eliminates Coverdell IRAs and Roth Re-Characterizations
    How does the proposed Republican tax reform impact your retirement account? Well, if you save for education expenses for your kids or grand-kids using a Coverdell Education Savings Account, you’re not going to be happy as new contributions to Coverdell accounts are eliminated in the House Plan. Also, both House and Senate bills eliminate the ability to re-characterize Roth IRA conversions back to traditional IRAs. This was a nice “do-over” the IRS allowed you to use if you regretted converting your traditional IRA to a roth IRA and switched it back to a traditional IRA within certain time limitations. For ... read more
    Source: Mat SorensenPublished on 2017-11-14By Mat Sorensen
  • Five Benefits of the Solo 401K
    For many Americans, saving for retirement is like exercising or eating healthy, we know we should do it but most of us don’t.   In fact, a survey published by the Washington Post reported that over 70% of Americans are not saving enough for retirement and a study by the US Government Accountability Office reported that as many as half of American households 55 or older have NO retirement savings at all!   A recent Merrill Lynch report estimates the average cost of retirement to be nearly $750,000 but this obviously depends on your standard of living and life expectancy.   With advances ... read more
    Source: KKOSLawyersPublished on 2017-11-06By Mat Sorensen
  • 4 Big Reasons To Ditch Your SEP IRA for a Solo 401(K)
    If you are self-employed and using a SEP IRA to save for retirement, you should carefully consider closing your SEP IRA and moving those funds to a new Solo 401(k) (aka, Solo K). Both SEPA IRAs and Solo Ks are retirement plans used commonly by self-employed persons with no other employees. We see SEP IRAs and Solo K’s commonly used by real estate professionals, investors, consultants, direct-marketing pros, 1099 sales persons, and other small business owners who don’t have other full-time employees and here’s why. Both the SEP IRA and the Solo K offer big annual contribution amounts that far ... read more
    Source: Mat SorensenPublished on 2017-10-31By Mat Sorensen
  • The New “Centralized Partnership Audit Regime” – A Seismic Shift or Much Ado about Nothing?
    An article on IRS audits…just what you needed to read before going to bed tonight, and I’m not kidding. Now, don’t be embarrassed if you haven’t heard of the Centralized Partnership Audit Regime (“CPAR”). If you think it sounds like something out of a George Orwell novel that only CPA’s and Tax Attorneys care about – well then, you’re half right. It’s not from Nineteen Eighty-Four. It is a real thing; the sort of thing people in my profession like to bring up when they’re trying to sound smart at cocktail parties – the most boring cocktail parties EVER. Anyway, ... read more
    Source: KKOSLawyersPublished on 2017-10-31By Jarom Bergeson
  • IRS Announces 2018 Retirement and Health Savings Account Contribution Amounts
    The IRS announced new contribution amounts for retirement accounts in 2018 and there are some winners and losers in the bunch. The biggest win goes to 401(k) owners, including solo K owners, who saw employee contribution amounts go from $18,000 to $18,500. Health savings account owners got a small victory with individual contribution maximums increasing $50 to $3,450 and family contribution amounts increasing $150 to $6,900. IRA owners don’t get a win with no increase in the maximum contribution amount for Traditional or Roth IRAs. The IRA maximum contribution amount is still $5,500 and hasn’t increased since 2013. Here’s a ... read more
    Source: Mat SorensenPublished on 2017-10-24By Mat Sorensen
  • 8 Core Tax Concepts Every Entrepreneur Needs to Know
    Of the many virtues that entrepreneurs have, one such virtue is the desire and ability to get as much information and knowledge as they can by reading books, attending speaking events, researching on the internet, etc. However, ‘taxes’ aren’t one of the topics entrepreneurs seek out, and it’s for a justifiable reason. Many believe the topic of taxes to be either too boring or overly complicated, and it typically is when presented improperly.  Yet, so many business owners are starving and anxious to learn tax and legal principles. Inspired by those teachers of tax and legal topics that make it ... read more
    Source: KKOSLawyersPublished on 2017-10-24By Mat Sorensen
  • Creative Planning Options with a Revocable Living Trust
    Estate planning is something most know they should do, but most American adults simply haven’t gotten it done.  In a survey available from AARP,  60% of American adults do not have an estate plan.  The number gets even higher for some minority populations.  In most cases, this is simply due to procrastination that “I just haven’t gotten around to it.”  Many people that I speak to as a lawyer simply don’t understand the consequences of passing away without an estate plan. One of the primary reasons for a Trust is to avoid probate, which is a court supervised process ... read more
    Source: KKOSLawyersPublished on 2017-10-17By Lee Chen
  • How a Short-Term Vacation Rental is Treated for Tax Purposes
    The popularity of renting a house, townhome or condo on a short-term basis through websites such a Airbnb, BRBO has exploded over the past few years. Just to give you an idea of how big the industry really is, consider that Airbnb is currently active in more than 65,000 cities and 191 countries, and it is projected to log 100 million guest arrivals in 2017. Looking to book a night or two in New York City? Airbnb has more than 43,000 active listings. Yes, the profits can be significant compared to a standard monthly rental property, but only when the ... read more
    Source: Mark J KohlerPublished on 2017-10-10By Mark J. Kohler
  • How a Short-Term Vacation Rental is Treated for Tax Purposes
    The popularity of renting a house, townhome or condo on a short-term basis through websites such a Airbnb, BRBO has exploded over the past few years. Just to give you an idea of how big the industry really is, consider that Airbnb is currently active in more than 65,000 cities and 191 countries, and it is projected to log 100 million guest arrivals in 2017. Looking to book a night or two in New York City? Airbnb has more than 43,000 active listings. Yes, the profits can be significant compared to a standard monthly rental property, but only when the ... read more
    Source: Mark J KohlerPublished on 2017-10-10By Mark J. Kohler
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