High-income earners may face additional taxes: the 3.8% Net Investment Income Tax (NIIT) and a 0.9% additional Medicare tax on wages and self-employment income. Let’s explore the potential impact these taxes could have on you How the NIIT impacts high-income earners In addition to income tax, the NIIT applies to net investment income if your […] The post What High-Income Earners Need to Know About Extra Taxes appeared first on Smolin Lupin ..read more

Buying a business with co-owners or already sharing the reins? A buy-sell agreement isn’t just a smart move–it’s essential. It gives you a more flexible ownership stake, prevents unwanted changes in ownership, and avoids potential IRS complications.  The basics There are two main types of buy-sell agreements: cross-purchase and redemption agreements (also known as liquidation […] The post Secure Your Business Partnership with a Buy-Sell Agreement appeared first on Smolin Lupin ..read more

Believe it or not, there are effective strategies to generate income and gains without triggering federal income tax. Here are some tips to keep your money in your pocket, tax-free: Roth IRAs  Roth IRAs are among the most powerful tools for generating tax-free income. Unlike traditional IRAs, qualified withdrawals from a Roth IRA are exempt […] The post 6 Smart Ways to Earn Income Without Paying Taxes appeared first on Smolin Lupin ..read more

A 2019 change to tax law ended the “stretch IRAs” strategy for most inherited IRAs. This means that beneficiaries now have 10 years to withdraw all of the funds. Since then, there’s been a lot of confusion about required minimum distributions (RMDs). Thankfully, the IRS has now issued final regulations clarifying the “10-year rule” for […] The post Your Need-to-Know Tax Guide for Inherited IRAs appeared first on Smolin Lupin ..read more

If you are one of the many Americans who rely on disability benefits, you might be wondering how that income is taxed. The short answer is it depends on the type of disability income you receive and your overall earnings. Taxable Disability Income The key factor is who paid for the benefit. When the income […] The post Tax Implications of Disability Income appeared first on Smolin Lupin ..read more

If you own real estate held for over a year and sell it for a profit, you typically face capital gains tax. This applies even to indirect ownership passed through entities like LLCs, partnerships, or S corporations. You can expect to pay the standard 15% or 20% federal income tax rate for long-term capital gains. […] The post Understanding Taxes on Real Estate Gains appeared first on Smolin Lupin ..read more

Your business can choose between cash or accrual accounting for tax purposes. While the cash method can provide certain tax advantages to those that qualify, the accrual method might be a better fit for some businesses.  To maximize tax savings, you need to weigh both methods before deciding on one for your business.  Small business […] The post Cash or Accrual Accounting: Which is Right for Your Business? appeared first on Smolin Lupin ..read more

Divorce is a complex legal process, both financially and emotionally. Taxes are likely the farthest thing from your mind. But, you need to keep in mind the tax implications and consider seeking professional assistance to minimize your tax bill and navigate the separation process more smoothly.  Here are six issues to keep top of mind […] The post Six Tax Issues to Consider During a Divorce appeared first on Smolin Lupin ..read more

Traditional estate planning often focuses on minimizing gift and estate taxes while protecting your assets from creditors or lawsuits. While these are important considerations, many people also hope to create a lasting legacy for their family. Dovetailing with the “technical” goals of your estate plan, such “aspirational” goals might include preparing your children or grandchildren […] The post Does a FAST Fit into Your Estate Plan? appeared first on Smolin Lupin ..read more

Most businesses today rely on websites, but despite their widespread use, the IRS hasn’t provided formal guidelines for deducting their costs. However, some guidance can be gleaned from existing tax laws that offer business taxpayers insights into the proper treatment of website cost deductions.  Tax implications of hardware versus software The hardware costs you might […] The post Tax Treatment of Business Website Expenses appeared first on Smolin Lupin ..read more