TMTW #415 Retirement Distribution – “The 4% Rule”

Tax and Money Tip this Week:

Retirement Distribution – “The 4% Rule”

January 2, 2019 | No. 415

Click Here to read an article in the ‘Wall Street Journal”

regarding retirement distributions.

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 #414 – Client Meals still 50% Deductible

Tax and Money Tip this Week:
Client Meals still 50% Deductible
December 26, 2018 | No. 414

Click Here to read an article in the ‘Wall Street Journal” regarding client meal deductions.

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 #413 – Last-Minute Year-End General Business Deductions

Tax and Money Tip this Week:
2018 Last-Minute Year-End General Business Deductions
December 19, 2018 | No. 413

Your year-end tax planning doesn’t have to be hard. This article takes your daily activities and identifies easy year-end tax-planning moves you can make today. Our five strategies will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash.

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 #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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