Expert Advice: How Taxes on Trusts Work
A trust is an arrangement that allows a third party known as a trustee to hold assets for a beneficiary. Trusts may be used as part of your estate planning, or you might form a trust to assist with controlling money for your heirs. Trusts can also help you prepare a strategy for financial management […]
How to Report a Foreign Bank Account to the IRS?
US tax law requires people with foreign financial accounts to report them to the US Treasury Department, even if the accounts don’t generate taxable income. While the requirement is often portrayed as something to fear (especially by people who’ve missed or skipped reporting their accounts), the reality is there are multiple options you can take […]
What Purchases Are Tax Deductible? A Quick Guide
Maybe you’ve heard of charity calls to make tax-deductible donations and wondered what that meant. Or perhaps you’ve listened to a discussion about mortgage interests and tax write-offs but couldn’t link the two. This quick guide will show you what purchases are tax deductible so you can reduce your tax burden through deductions. When you […]
What is a K-1 Trust Distribution?
The federal law allows pass-through entities to report their income, losses, and deductions using a unique tax document that transfers the responsibility of paying taxes to individual partners or shareholders. While all these entities use Schedule K-1 to report their financial standings, the distribution varies depending on whether it is an S corporation, Trust, or business […]
The Difference Between Sponsorship and Advertising: Everything You Need to Know
Sponsorship and advertising can appear quite similar, and they both may have an important role in your business’s marketing strategy. The Internal Revenue Service defines each differently, however, understanding the IRS’ different definitions can help businesses and nonprofits when filing taxes. Official IRS Definitions of Advertising and Sponsorship The IRS defines both advertising and sponsorship […]
How to Navigate Payroll for a Small Business
Running a small business is a challenging endeavor, with countless tasks that need to be managed daily. One of a small business owner’s most important responsibilities is ensuring payroll is handled correctly. From calculating wages to filing taxes, payroll is a complex process; mistakes can result in fines and other penalties. Knowing how to navigate […]
How a CPA Firm Can Help Individuals
When it comes to your finances, you can’t be too careful. That is especially true if you are running a business on the side or a busy professional with limited time. You need to know where your money is going and how to get the most bang for your buck. That’s why it’s important to […]
ATM Fees & Taxes: What You Need to Know
If you’re like most small business owners, you probably have a good idea of the big-ticket items like your home office and vehicle expenses. But what about those smaller write-offs that can save you money and help your bottom line? Many small businesses miss out on valuable tax deductions because they don’t know what’s allowed […]
How Do Taxes Work For a Trust?
A trust can be a valuable tool for estate planning and a variety of other purposes. However, when it comes to taxes for a trust, throwing a trust into the mix can sometimes create a bit of confusion. Whether you’re setting up a trust or you’re a beneficiary, it’s important to understand your potential tax […]
Expert Details About Irrevocable Trust Disbursements
If you’re a beneficiary, grantor, or trustee of an irrevocable trust, it’s important to understand the specifics of how trust disbursements work and who is liable for the taxes. Following, you’ll find a quick overview of the important details and a few examples for clarification. Taxation of Irrevocable Trust Disbursements When an irrevocable trust disburses […]
Trust Distribution Taxes – Do Beneficiaries Pay Taxes?
The question of whether or not a beneficiary pays trust distribution taxes on the income received from a trust comes up quite often. The answer depends on your particular situation. In the sections below, we will explain the circumstances when you, as a beneficiary, must pay tax and when it’s not required. But first, let’s […]
Are Trust Funds Taxed? What You Need to Know
One of the most common questions we hear about the administration of trusts is, “Are trust funds taxed?” Like so many other financial matters, the answer is, it depends. Many people get confused that the taxable income of trusts and trust income are not the same things. Typically, a beneficiary (and sometimes a trust itself) […]
Legal Professionals: What to Look for in Accounting Services
Accounting for law firms can be intimidating, even for seasoned law practitioners. If you are like many, you’ve spent all your years sharpening your law skills, so accounting and bookkeeping are areas you are not skilled at. Still, you should employ legal accounting services to ensure your firm runs smoothly and you are on track […]
Distributions From Irrevocable Trust: Taxable to Beneficiary
When planning your estate to transfer to heirs, you can choose between revocable and irrevocable trusts. It’s important to know the difference to understand if distributions from the trust are taxable to the beneficiary. Trusts are entities you set up to hold your assets during your lifetime and ensure they are used appropriately. Usually, the […]
What is a K-1 Form and How Does it Affect Trust Distribution?
A schedule K-1 is a commonly used Internal Revenue Service (IRS) tax form issued to individuals who have a beneficial interest in certain types of entities. If you’re the beneficiary of a trust or you have a trust as part of your estate plan, it’s important to understand your tax liability, including when you’re likely […]
A Quick Guide: How to Be Financially Stable
Financial security is the cornerstone to achieving many of life’s goals – owning a house, retiring early, or taking a few years off work to travel and see the world. Learning how to be stable financially starts with financial literacy. The better you understand all aspects of money management, the better you’ll be at analyzing […]
Trust Funds & Taxes: What You Need to Know
Trust funds can be a great way to provide ongoing support or to pass on wealth to spouses, family members, or charities while offering significant tax advantages to both the creator of the trust and the beneficiary. Many trusts can also avoid probate in the event of the creator’s death. But are trust funds taxable? […]
6 Steps to Take Toward Becoming Financially Stable
Financial stability is a dream goal for many. While it may not necessarily translate to being rich, it means you can comfortably handle your bills, pay your debts and have savings for emergencies and future endeavors. To achieve financial stability and live the lifestyle you desire, you have to cultivate healthy financial habits and put […]
Who Needs A CPA? (7 Reasons Why Your Business Needs a CPA)
Do you know how much the operations in your business are costing you? Are you sure that it’s actually making money for you? In order to answer these questions and more, your business needs a CPA. From sales and purchases to expenses and taxes, running a business can be an incredibly complex task. A certified […]
What Is an IRS 1099 Form?
A 1099 form is an informational return that is used to report certain types of payments made by businesses to contractors and other unincorporated service providers. It is an informational return in the sense that third parties such as businesses and institutions use it to notify government agencies and taxpayers of the tax payable. The […]
