TMTW #412 – 2018 Last Minute Year-End Tax Strategies for Your Stock Portfolio

Tax and Money Tip this Week:
2018 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
December 12, 2018 | No. 412

Your stock market portfolio can represent a little gold mine of opportunities to reduce your 2018 income taxes when you take advantage of the tax code’s offset game. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. In addition to saving taxes with the game of offset, you can also avoid paying taxes on stock appreciation by gifting stock to charity, your parents, and your children who are not subject to the kiddie tax.

Click Here for more details regarding these strategies.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit
our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW#411 Do you have Unclaimed Cash with The State of NC?

Tax and Money Tip this Week:
Do you have Unclaimed Cash with The State of NC?
December 5, 2018 | No. 411

If you have unclaimed cash, banks sometimes will not call you.  If you have moved and the bank can not locate you they will turn the money over to the State of NC.

To see if you have money to claim, go to www.nccash.com or call the NC Department of State Treasurer’s office at 1-800-582-0615.
The claim may take 3 months to process.

You may have Christmas cash coming to you!

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit
our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW Bonus- Year End CountDown

Tax and Money Tip this Week:
Year End CountDown
November 27, 2018

The countdown to year end has begun.  Our clients need to be thinking about their 2018 tax situations as your withholding may not be sufficient under the new tax laws and you may owe money with your tax returns unknowingly. There is still time to employ some tax-savvy moves that could potentially decrease this year’s bill.  Tax reform legislation has changed the rules of the game, so it’s important to discuss end-of-year strategies with your tax advisor as soon as possible.

If you would like to schedule an appointment to find out potential tax saving opportunities and prevent a potential unpleasant surprise when we prepare your tax return next spring, please contact Mark.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW Bonus- New 2018 Section 199A

Tax and Money Tip this Week:
New 2018 Section 199A
November 29, 2018

Dear Clients and Friends:

The new 2018 Section 199A tax deduction that you can claim on your IRS Form 1040 is a big deal. There are many rules (all new, of course), but your odds as a business owner of benefiting from this new deduction are excellent.

Rejoice if you operate your business as a sole proprietorship, partnership, or S corporation, because your 2018 income from these businesses can qualify for some or all of the new 20 percent deduction.

You also can qualify for the new 20 percent 2018 tax deduction on the income you receive from your real estate investments, publicly traded partnerships, real estate investment trusts (REITs), and qualified cooperatives.

Basic Look

When can you as a business owner qualify for this new 20 percent tax deduction with almost no complications?

To qualify for the 20 percent with almost no complications, you need two things: First, you need qualified business income from one of the sources above to which you can apply the 20 percent. Second, to avoid complications, you need “defined taxable income” of

  • $315,000 or less if married filing a joint return, or
  • $157,500 or less if filing as a single taxpayer.

Example. You are single and operate your business as a proprietorship. It produces $150,000 of qualified business income. Your other income and deductions result in defined taxable income of $153,000. You qualify for a deduction of $30,000 ($150,000 x 20 percent).

If you operate your business as a partnership or S corporation and you have the qualified business income and defined taxable income numbers above, you qualify for the same $30,000 deduction. The same is true if your income comes from a rental property, real estate investment trust, or limited partnership.

Some unfriendly rules apply to what Section 199A calls a specified service trade or business, such as operating as a law or accounting firm. But if the doctor, lawyer, actor, or accountant has defined taxable income less than the thresholds above, he or she qualifies for the full 20 percent deduction on his or her qualified business income.

In other words, if you were a lawyer with the same facts as in the example above, you would qualify for the $30,000 deduction.

Once you are above the thresholds and phaseouts ($50,000 single, $100,000 married filing jointly), you can qualify for the Section 199A deduction only when

  • you are not in the out-of-favor group (accountant, doctor, lawyer, etc.), and
  • your qualified business pays W-2 wages and/or has property.

As you can see, there’s much to this new 2018 tax deduction. You may want to spend some time with me planning for this deduction. If so, please call me to setup an appointment to see how it benefits you toward year end 2018.

Questions or Comments?

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TMTW#410 Year End Tax Planning

Tax and Money Tip this Week:
Year End Tax Planning
November 28, 2018 | No. 410

This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2018 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when we prepare their tax returns.

For the business owner and individuals, one of the largest expenses can be taxes.  For this reason alone, this expenditure requires planning and monitoring as any other major expense.  A year end planning meeting with your CPA should include a discussion of:

  • any assets purchased during the year
  • anticipated year-end revenues and expenses
  • plans for current year retirement funding
  • any refinancing of debt that occurred in the current year
  • any changes to your business structure

This planning meeting should prepare the business owner or individuals to anticipate the amount of taxes that will be owed on March 15th (or April 15th if the tax burden flows through to the personal return).  To be effective, tax planning needs to be done prior to New Year’s Eve.

Use our experience in year-end tax planning to enhance your bottom line.  Give us a call if you would like to discuss your personal tax situation and see how we can save you taxes.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW#409 Happy Thanksgiving!

Tax and Money Tip this Week:
Happy Thanksgiving!
November 21, 2018 | No. 409

Hope you and your family have a wonderful Thanksgiving!

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #408 How to Save Taxes in Year End 2018

Tax and Money Tip this Week:
How to Save Taxes in Year End 2018
November 14, 2018 | No. 408

Click here to read about solo 401(K) retirement plan from ‘Business Management Daily’

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit
our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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