Whether it’s to qualify for Medicaid, avoid probate, or reduce your tax burden, transferring ownership of your home to your adult child during your lifetime may seem like a smart move. But in nearly all cases, it’s actually a huge mistake, which can lead to dire consequences for everyone involved. With this in mind, before you sign over the title to your family’s beloved homestead, consider the following potential risks.
In light of the pandemic, the rules and programs governing income taxes for businesses have changed multiple times over the last two years, which has caused confusion and headaches for more than a few business owners. And while many of the pandemic-inspired programs and tax breaks have already ended or will end soon, a few of these programs still stand to impact your taxes in 2021.
Cash is the lifeblood of any business. Far too many businesses, most owners do not adequately manage their cash flow. Trying to manage a business without properly controlling your cash flow is like fighting a rising tide. Even if your company earns a solid profit, you may have cash flow problems from time to time, especially true during the first few years of operation.
Get savvy about growing your cash flow by applying these five techniques to avoid entering the ranks of insolvent companies.
Moving a business to another state involves several decisions and steps. A business owner may relocate a business for various reasons, including increased real estate costs, business taxes, business regulations, changes in the target market, or even personal or family reasons. But relocating your residence from one state to another is much more complicated and difficult to determine what to do first because the steps needed for a successful move vary depending on your business structure.
When you realize that your biggest personal and business expense is taxes, it can come as quite a shock. Seeing so much of your money wind up in the government's hands can feel like a shakedown. So, it's crucial to strategize to reduce your taxes. Some people resist enforcing creative tax strategies because they're worried it will get them in trouble with the IRS. However, as long as you do things properly, there's nothing illegal about strategizing to pay the least amount of taxes possible.
Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax law (increase in personal and capital gains tax rates, etc.). Yet, the proposed law is still under consideration and far from being finalized. If your business or personal finances stand to be impacted by any of these changes, you must act quickly to ensure that whatever actions need to be taken can be planned and executed before the end of the year.
Giving donations to a charitable cause is a noble act of kindness. And you are also likely well aware that as with donating to charity during your lifetime, dedicating a portion of your estate to a charitable cause can reduce the taxable value of your estate. But it doesn’t end here. You may be surprised to learn about the numerous benefits available when you incorporate charitable giving into your estate plan. Learn more here!
Growing your small business can be tricky. In fact, rapid growth can actually harm your company if you don't plan properly. And, even if you've implemented processes, technology, and outsourcing to deliver your core product or service and maximize growth efficiently, your company is still at risk if it doesn't have effective legal, insurance, tax, and financial (LIFT) systems. In fact, without solid LIFT systems, your business is just one accident, audit, or lawsuit away from ruin.
If you've always dreamed of running your own business but find the thought of building an entire company from scratch too daunting, you might consider investing in a franchise. When you purchase a franchise, you get an already proven business model and brand, which can make the startup phase significantly easier. Also, most franchises come with turnkey operating systems, extensive training programs, and ongoing support from the franchisor. However, no business is without its risks and drawbacks.
Going into business with your spouse or romantic partner can be an amazing opportunity—but it can just as easily be an absolute nightmare if not handled properly. Regardless of how amazing your love life may be, there's no guarantee you'll be equally compatible in a working relationship. It can potentially wreck both your business and marriage if things don't work out. Make sure to clarify the potential problems, risks, and benefits before jumping into business together.