A Reverse Mortgage Loan Is a Major Decision That Might Involve Family

Tax Act

Did you ever get the feeling that maybe you should rethink your position just before a deal is closed, then later regret not acting on the feeling?  If you have, you experienced what people in sales refer to as a “moment of objective clarity.”  You are referred to as a mook once you leave and your money is securely in their hands.  A mook is a person who subconsciously knows that they are being taken for a ride but cannot pinpoint why and therefore sign the deal and leave happy on the outside and wondering on the inside.  Being a mook is caused by a lack of complete research on the buyer’s part and can be avoided.

Prepare a Contrasting List

If you are considering a reverse mortgage loan, you might want to stop and take a good long look at the reverse mortgages pros and cons before you proceed.  Pros and cons refers to a list that you could make that has the positive and negative sides to each point of anything, whether it be the advantages or reverse mortgage disadvantages.  This type of life changing decision warrants a good long look.

Getting What We Wish For

A reverse mortgage is an important step in your retired life that could be the answer to a prayer.  We all wish that we will have a comfortable retirement t look forward to but sometimes, you get what you wish for and that could come back and bite you or your heirs if you do not have a firm understanding of the reverse mortgages disadvantages.  Understanding what is good about a reverse mortgage is easy.

Avoid Being a Mook

The Internet is the perfect place to start your search into a reverse mortgages pros and cons.  Have a pencil and paper at the ready when you conduct your search and dust off that printer.  Knowing all the facts is what it is all about.  Discuss your pros and cons list with any family that has a stake in your decision and be especially prepared with the reverse mortgage disadvantages.  You know that they will want to know about that.  Don’t be a mook.  Do your research.

Which Is Best for My Small Business? a SEP IRA or SEP 401k?

Tax Act

A retirement plan for a small business can be tricky to find. You would want a plan that has low contribution minimums and affordable administration fees without sacrificing the benefits that your employees may receive. Of all retirement plans available for small business proprietors and self-employed individuals, the SEP IRA and SEP 401k plans are the top choices. What is a SEP IRA and what are the SEP IRA rules? A SEP 401k? What are their similarities and differences? Which is better for my business?

A SEP IRA is a retirement plan that allows the employer an easy method of contribution to the employee’s IRA. When to make contributions and how much will be contributed is all up to the employer. The limits of contribution are generous: $49,000 or 25% of the worker’s annual salary. The contribution to be made will be the lesser of the 2. An advantage of this plan is that it can include a big number of employees under the SEP.

Similar to a SEP IRA, the SEP 401k contributions are also employer discretionary. Contribution limits for this plan are: $15,500 maximum from employee’s salaries plus an additional 25% of the employee’s compensation as employer contributions. The catch is that this plan is only for the account older and his or her spouse, any employee cannot be part of the plan.

Of the two, the SEP 401k can potentially have a bigger contribution allowance. Say for example, an employee is receiving $100,000 a year. In a SEP IRA, maximum contribution possible would be 25% or $25,000. For a SEP 401k, that would be $15,500 taken from the salary, plus an employer contribution of 25% or $25,000. That would amount to a maximum possible contribution of $40,000fot the SEP 401k. The only drawback of the SEP 401k is that employees are not catered in the plan, so if you plan to expand your business and hire more to work from you, then the SEP IRA is the obvious choice.

Tax Deductions Can Help To Improve Your Bottom Line

Tax Act

Small Business Often Overlooks Tax Deductions

You can have a successful tax season in your small business if you plan all round the year so that the deductions are maximized. This requires that tax matters should be kept in mind at all times, and you must constantly look for methods of reducing your bottom line, while continuing the profitability of the company.

Expenses for Start-Up

The expense of starting a business is quite often overlooked by small businesses and this can give one quite an advantage when the tax season is being considered. It is possible to deduct the expenses incurred for overhead,marketing and other expenses that are related and this can be done for a period of five years after starting the business. However the deduction of such expenses is only allowed after you have actually started the business and cash flows have commenced.

Education and Training Has To Be Continuous

A continuity in training and education, makes you eligible to deduct the expenses incurred for this. Attending a conference on new trends for treatment of cancer in horses allows a veterinarian who specializes in treating horses to deduct the expenses of attending that conference. As the conference is related to the field in which the veterinarian is practicing this seminar can be a part of the deduction form the yearly tax. However if he is not practicing in that field and only treats smaller animals, he would not be eligible for any deduction. The rules for the classes that qualify the deduction are quite strict.

Fees for Professional Services

Any professional fees that you pay to your accountant can be deducted from taxes.If however the work is for future years, the benefit has to be spread out over the term envisaged. If you have hired an architect for designing a building that may take two years to construct,the architects fees have to be spread over the period during which the building construction takes place.