Category Archives: Financial Planning

AMT Calculations: It’s Showtime

March 12, 2018 | Financial Planning, Tax Planning, Tax Preparation

Back in 1969 the alternative minimum tax (AMT) was enacted to ensure that high-income individuals don’t take advantage of multiple tax breaks and avoid paying federal tax. However, in recent years, the AMT has been imposed on many middle-income taxpayers. Unfortunately, the Tax Cuts and Jobs Act (TCJA) retains the individual AMT. But AMT exemptions and  Continue Reading »

IRS Releases New Withholding Tables: Maine Employees Could See Changes Soon

March 5, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

The IRS released updated 2018 income tax withholding tables on January 11, which reflect changes made by the new Tax Cuts and Jobs Act. The IRS states that this is the first in a series of steps that the IRS will take to help improve the accuracy of withholding following major changes made by the new  Continue Reading »

New Law Revamps the Kiddie Tax

February 19, 2018 | Financial Planning, Tax Planning, Tax Preparation

Recently, Congress revamped the so-called “kiddie tax” under the Tax Cuts and Jobs Act (TCJA). Congress had enacted the tax rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. What changed? The kiddie tax rate structure was the only thing revised by the TCJA.  Continue Reading »

3 Affordable Care Act Taxes Postponed by Congress

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

On January 22, a short-term government funding bill was signed into law by President Trump. It ended the brief government shutdown by funding the federal government through February 8. It also suspends the following Affordable Care Act (ACA) taxes, which were designed to help fund health care coverage provided under the ACA. 1. Cadillac Tax For  Continue Reading »

Spotlight on Pass-Through Entities under the Tax Cuts and Jobs Act

January 31, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

It’s true—the tax rules for pass-through entities, including S corporations, limited liability companies (LLCs), partnerships and sole proprietorships, have generally become more beneficial. However, they have also become more confusing under the new law. So deciding on which type of entity is best for your business will depend on several factors, which are explained in  Continue Reading »

To Franchise or Not to Franchise?

January 29, 2018 | Business Plans, Financial Planning

Many Mainers are considering going into business for themselves. One of the things that must be decided is whether or not a franchise would be the right choice for these new business owners. Basically, a franchise gives the business owner the licensed right to use a service mark, trademark, or business concept. The business owner  Continue Reading »

Big Accounting Rule Changes Coming Soon

January 19, 2018 | Accounting Standards, Financial Planning, IRS Regulation

If your Maine business is scrambling to get up-to-date on changes to the federal tax rules under the Tax Cuts and Jobs Act, note that there also will be major changes to U.S. Generally Accepted Accounting Principles (GAAP). Here’s an overview of the major accounting rules that will change over the next few years. Likely, these  Continue Reading »

Think You Don’t Need a Written Contract? Think Again

January 17, 2018 | Accounting Standards, Business Plans, Financial Planning, Valuations

You’ve probably heard the old saying, “a verbal contract isn’t worth the paper it’s written on.” Yet many business owners and executives still enter into handshake deals. This can create problems later on that could have been easily avoided by simply getting things in writing. There’s nothing wrong with ironing out the details of a transaction  Continue Reading »

Tax Cut Law: Mostly Good News for Employers and Employees

January 15, 2018 | Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

For Maine employers, the most immediate concrete change the Tax Cuts and Jobs Act (TCJA) will bring about is new payroll tax withholding rates. Here’s the latest from the IRS: “We anticipate issuing the initial withholding guidance in January reflecting the new legislation, which would allow taxpayers to begin seeing the benefits of the change as  Continue Reading »

Landmark Tax Reform Bill Passes

January 3, 2018 | Deductions, Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

The most significant tax legislation in decades has passed. The new tax reform law is commonly referred to as the “Tax Cuts and Jobs Act” (TCJA). Now Maine businesses and individuals are trying to digest the details and evaluate how the changes will impact their tax situation. Fortunately, your tax advisors can help you figure things out.  Continue Reading »