Category Archives: Financial Planning

Self-Audit Program May Help Employers Correct Wage Errors

May 28, 2018 | Accounting Standards, Deductions, Financial Planning

Thanks to a pilot program from the Department of Labor’s Wage and Hour Division (WHD), eligible employers may now be able to conduct a self-audit of certain wage practices. This program — called Payroll Audit Independent Determination (PAID) — was launched recently to enable employers to uncover payroll errors on their own. Employers who use the PAID  Continue Reading »

Should Your Business Be a C Corporation or a Pass-Through Entity?

May 23, 2018 | Business Plans, Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

The Tax Cuts and Jobs Act (TCJA) introduced a flat 21% federal income tax rate for C corporations for the 2018 tax years and beyond. Previously, profitable C corporations paid up to 35%. This news has caused many business owners in Maine and elsewhere to ask: What is the best choice of entity for my start-up  Continue Reading »

Valuation Issues to Address in a Buy-Sell Agreement

May 21, 2018 | Financial Planning, Valuations

Buy-sell agreements protect businesses with multiple owners in the event that one of the owners dies, becomes disabled, or voluntarily decides to leave the company. The agreement should dictate who can buy the departing owner’s interest, when, how and for how much. Ideally, these contracts are set up when a business is launched, but they can always be  Continue Reading »

Take Advantage of Expanded Tax Breaks for Business Vehicles

May 14, 2018 | Business Plans, Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

The first-year depreciation deductions for vehicles used more than 50% for business purposes has been expanded by the Tax Cuts and Jobs Act (TCJA). Here’s what Maine small business owners need to know to take advantage. Depreciation Allowances for Passenger Vehicles The TCJA dramatically and permanently increases the so-called “luxury auto” depreciation allowances for new  Continue Reading »

Capital Gains Rates Before and After the New Tax Law

May 11, 2018 | Financial Planning, Tax Planning

You are not alone if you have been confused about the federal income tax rates on capital gains and dividends under the Tax Cuts and Jobs Act (TCJA). Here’s what you should know if you plan to sell long-term investments or expect to receive dividend payments from your investments. Old Rules Prior to the TCJA, individual  Continue Reading »

Congress Raises 401(k) Hardship Withdrawal Limits

April 20, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

Hardship withdrawals are permitted by most 401(k) plans, though plan sponsors aren’t required to allow them. As it stands today, employees seeking to take money out of their 401(k) accounts are limited to the funds they contributed to the accounts themselves, and only after they’ve first taken a loan from the same account. And of  Continue Reading »

Good Reasons to File Extensions for 2017 Returns

April 9, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

This year, the deadline for filing your 2017 individual income tax return this year is Tuesday, April 17, 2018, and the countdown to Tax Day has begun! Currently, many taxpayers are scrambling to wrap things up. But there’s an easy fix if you’re among the procrastinators: Ask your tax advisor to file Form 4868 by April  Continue Reading »

Are Roth IRAs Still Beneficial under the New Tax Law?

March 30, 2018 | Financial Planning, Tax Planning, Tax Preparation

For many individuals, the Roth IRA remains an attractive retirement planning vehicle for after the changes made by the Tax Cuts and Jobs Act (TCJA). Here’s what you need to know about Roth IRAs and Roth IRA conversions under the new law. Tax Advantages There are several important tax advantages that Roth IRAs offer over traditional  Continue Reading »

Know the Details of the Family and Medical Leave Tax Credit

March 26, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

If your Maine company initiates a new paid family and medical leave benefit, the Tax Cuts and Jobs Act, enacted at the end of last year, will give your company a tax credit. Although the IRS has yet to issue its interpretive regulations, the text of the law itself gives you enough to go on to  Continue Reading »

How the New Tax Law Affects Rental Real Estate Owners

March 16, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

If you own commercial or residential rental real estate in Maine, the Tax Cuts and Jobs Act (TCJA) brings several important changes that owners of rental properties should understand. Rental property owners, in general, will enjoy lower ordinary income tax rates and other favorable changes to the tax brackets for 2018 through 2025. In addition,  Continue Reading »