Moore Colson Messages
Tax Tips
Do you have enough insurance coverage?
There are many benefits, including tax advantages, to
life insurance. For example, it can help cover estate taxes and
settlement costs as well as provide liquid assets for your heirs.
Because your income needs may change over time, periodically review
your policies to ensure adequate coverage for:
Keep in mind that life insurance is just one tool that
— with the proper planning — you can use to reduce your taxable
estate. Otherwise it can increase an estate and the taxes of the
policyholder who died.
More tax treats
for vacation retreats
As with your personal residence, you may generally
fully deduct one vacation home’s (or second home’s) mortgage interest
and property taxes. The interest deduction applies to the first $1
million in mortgage debt used for buying, building or improving one
principal residence and one vacation abode, plus $100,000 home equity
indebtedness.
To make the most of the deduction, designate the
residence with the largest total mortgage interest and real estate tax
deductions as your second home.
There are additional tax advantages if you rent out
your vacation home, depending on the number of days you lease it. For
instance, you may benefit from additional tax-free rental income or
deductions for rental-related expenses, such as utilities and
maintenance.
Paying for
health insurance with retirement funds
Will you be taxed on qualified retirement plan
distributions used for health insurance premiums? Yes, said the IRS in
a recent ruling. In one instance, an employee used qualified
retirement plan distributions to pay health insurance premiums. In
another case, a worker used them to pay medical care expenses. So,
though you can pay such expenses pre-tax from current wages, you
cannot enjoy the same tax break when you pay them from retirement plan
distributions.
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Taking workers under
your wing
Improve successor and staff performance through mentoring
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As many family business
owners can probably attest, the first days of running their
companies were stressful. But if they were fortunate enough to
have a coach, the worries were probably manageable. For many
such companies, mentoring plays an important role in both the
successful transfer from one generation to another and daily
operations. This article discusses why this is important and
some tips to help owners and managers mentor their successors
and staffs.
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Chart your way to tax savings
3 routes to a larger charitable deduction |
| With summer
approaching, people may hope to go hiking or camping with a map
and compass in hand or read a book on the beach. No matter how
they plan to spend their free time, they should schedule a few
hours to review some tax-saving tips. This article looks at
three great ways taxpayers can demonstrate their generosity — by
donating vehicles, homes and collectibles.
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What’s in a location?
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Although the move
to a different city proved to be the right decision for many
family businesses, it is not an easy one. This article reviews
factors owners must consider, including transportation and
competitors’ locations, in respect to their families’ and
companies’ needs.
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