Bogdanoff Dages & Co, PC

08/20/2022

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CNN's Christine Romans and Rahel Solomon says Apple is urging users to update their device immediately to prevent hackers from taking complete control of their devices.

08/19/2022

As tax advisory firm, and now that we have had some time to digest the Inflation Reduction Act, we are pleased to see that the will be using the majority of the funds to replace agents that have or will be retiring and upgrading the infrastructure. These moves should reduce the staggering backlog, improve the response time, and ultimately improve taxpayer services.

05/31/2022

If you’re laid off or terminated, taxes are probably the last thing on your mind. However, there may be tax implications. For example, what’s the best option for amounts you’ve accumulated in a retirement plan sponsored by a former employer? For most, a tax-free rollover to an IRA is the best move. You may continue group health coverage under COBRA. The cost of premiums paid for health insurance is a medical expense, which is deductible if you itemize deductions and your total medical expenses exceed 7.5% of adjusted gross income. Complex situations arise if you have incentive stock options or a “golden parachute payment.” We can help you chart the best tax course during this time.

05/31/2022

Businesses must keep records of their income and expenses. Carefully record them in order to claim the full amount of tax deductions to which you’re entitled. You also want to make sure you can defend the amounts on your tax returns if you’re ever audited by the IRS. Certain expenses, such as automobile, travel, meals and home office expenses, require special attention because they’re subject to special recordkeeping requirements or limits on deductibility. Contact us if you need assistance retaining adequate business records. By taking a painstaking approach to how you keep records, you can protect deductions and help make an audit much less difficult.

05/30/2022

Do you operate a small business as a sole proprietor? There are many tax rules and considerations involved in operating this way. For example, you may qualify for the pass-through deduction on qualified business income. You must pay self-employment tax and make estimated tax payments on income earned. You can deduct health insurance costs as a business expense. If you hire employees, you need a taxpayer ID number and must withhold and pay employment taxes. Keep complete records of income and expenses. Also, consider setting up a qualified retirement plan. Contact us if you want more information about the tax aspects of your business, or if you have questions about recordkeeping requirements.

05/30/2022

Strange as it may sound, business technology upgrades demand a bit of soul searching. That is, before spending the money, dig deep for insights about what your company really needs and whether end users will appreciate your efforts. Gather your leadership team and ask questions such as “What are the specific functionalities that we need?” and “Are we looking at hardware, software or both?” Consider surveying employees and/or customers as well. When you’ve settled on an upgrade, create a “hot list” of vendors most likely to provide optimal service, adequate training and good customer support. For help estimating the costs and projecting the financial impact of a tech upgrade, contact us.

05/27/2022

Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution is taxable to you as a shareholder and not deductible by the corporation. But there are some alternatives that may allow you to withdraw cash from a corporation and avoid dividend treatment. For example, you might be able to receive capital repayments, or obtain reasonable compensation for you (or family members), as well as certain fringe benefits. If you’re interested in discussing these or other ideas, contact us. We’ll help you get the most out of your corporation at a minimum tax cost.

05/27/2022

Under just about any circumstances, the word “leakage” has negative connotations. In a retirement planning context, leakage refers to pre-retirement withdrawals from an account. Why should business owners who sponsor a qualified plan care? Leakage can lead to higher plan expenses. It may also indicate that employees are facing unusual financial challenges, which tend to negatively affect morale, productivity and quality of work. Perhaps the most important thing you can do to limit leakage is educate and remind employees about how pre-retirement withdrawals can diminish their accounts and delay their anticipated retirement dates. Contact us with questions or for more information.

05/26/2022

Some taxpayers move to new homes but rent out their present homes. Renting out a home carries potential tax benefits and pitfalls. You’re generally treated as a landlord once you begin renting your home. That means you must report rental income on your tax return but are entitled to deductions for utilities, incidental repairs, depreciation and other expenses. However, you could forfeit a big tax break if you sell the home at a profit. You can generally escape tax on up to $250,000 ($500,000 for married joint filers) of gain on the sale of a principal home. However, this treatment is conditioned on using the home as your principal residence for at least 2 of the 5 years preceding the sale.

05/26/2022

Every company should carry various forms of business insurance. But that doesn’t mean you should pay unnecessarily high premiums. Here are five ways to control your costs: 1) Regularly review every policy to ensure it’s appropriate to your current circumstances and needs. 2) Shop around for better coverage, as well as for discounts you’re missing out on. 3) Actively manage workers’ compensation insurance, particularly making sure to properly classify employees. 4) Consider increasing your deductibles on certain policies so you can pay a lower premium. 5) Above all, prioritize safety through proper training, vigilance and enforcement. Contact us for help assessing the cost of your insurance.

05/25/2022

If you’re married, you may wonder if you should file joint or separate tax returns. It depends on your individual tax situation. In general, you should use the filing status that results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” liable for tax on your combined income (as well as any additional tax the IRS assesses, plus interest and most penalties). Therefore, the IRS can come after either of you for the full amount. In most cases, joint filing offers more tax savings but some people can save by filing separately. We can look at both options. Contact us to prepare your tax return or if you have questions.

05/25/2022

Historically, sales departments have always trended toward higher turnover rates. However, by leaning into sales staff retention a little harder, you can hang on to your company’s top sellers. Begin with improvements to your hiring and onboarding processes. Welcome new employees warmly, provide ample training and consider appointing mentors to help them get comfortable. Of course, compensation matters as well. Investigate the feasibility of retention bonuses and financial rewards for maintaining and increasing sales. Also, consider forming a sales leadership team that can contribute to strategic planning. Because they work in the trenches, salespeople often have some great ideas.