Anderson, Folkoff & Co., Inc. CPAs

Did you know that naming the wrong beneficiary to a life insurance policy can result in unintended outcomes? Learn about three pitfalls to avoid.

Device policies pertaining to smartphones and other technology tools are evolving. Loose bring your own device (BYOD) policies are giving way to stricter choose your own device (CYOD) or corporate-owned, personally enabled (COPE) policies. A CYOD policy lets employees buy a device for combined personal/work use from a company-approved list. Generally, the employee owns the device while the business owns the SIM card and any proprietary data. Under a COPE policy, the employer buys and owns the device, which is intended for business use. The cost is higher, but it comes with greater control. We can help you analyze the potential costs of a device policy and make the right choice.

Under current law, there are two valuable depreciation-related tools that may help your business reduce its 2019 tax liability. To benefit from the Sec. 179 and bonus depreciation deductions, you must buy eligible machinery, equipment, furniture or other assets and place them into service by the end of the tax year. In other words, you can claim a full deduction for 2019 (up to certain limits) even if you acquire assets and place them in service during the last days of the year. It’s important to note that these deductions may also be used for business vehicles. But, depending on the type of vehicle, additional limits may apply. Please contact us to learn more.

A relatively easy way to reduce your taxable estate is to make annual exclusion gifts of $15,000 per recipient for 2019 and 2020. But what if you want to give away more without dipping into your lifetime gift and estate tax exemption of $11.40 million (for 2019)? An alternative strategy is to pay medical expenses on behalf of someone directly to a health care provider. Those payments are exempt from gift tax above and beyond any amount covered by the annual gift tax exclusion. The same is true for paying the tuition expenses of a student directly to the school. Contact us for details.

Your lender may not be top of mind as you create a succession plan, but it’s a pertinent party. One key issue that lenders want a succession plan to address is, simply, who’s your successor? Follow a thoughtful process to choosing the right person then set a timeframe for the transfer of control and ownership, all while keeping your lender in the loop. To guard against future disputes, lenders also want to know that the planning process involves your entire family, regardless of whether the individuals involved are active in the business. We can help you with the tax, accounting and financial aspects of succession planning, including effective communication with your lender.

Under current law, there are two valuable depreciation-related tools that may help your business reduce its 2019 tax liability. To benefit from the Sec. 179 and bonus depreciation deductions, you must buy eligible machinery, equipment, furniture or other assets and place them into service by the end of the tax year. In other words, you can claim a full deduction for 2019 (up to certain limits) even if you acquire assets and place them in service during the last days of the year. It’s important to note that these deductions may also be used for business vehicles. But, depending on the type of vehicle, additional limits may apply. Please contact us to learn more.

A relatively easy way to reduce your taxable estate is to make annual exclusion gifts of $15,000 per recipient for 2019 and 2020. But what if you want to give away more without dipping into your lifetime gift and estate tax exemption of $11.40 million (for 2019)? An alternative strategy is to pay medical expenses on behalf of someone directly to a health care provider. Those payments are exempt from gift tax above and beyond any amount covered by the annual gift tax exclusion. The same is true for paying the tuition expenses of a student directly to the school. Contact us for details.

Your lender may not be top of mind as you create a succession plan, but it’s a pertinent party. One key issue that lenders want a succession plan to address is, simply, who’s your successor? Follow a thoughtful process to choosing the right person then set a timeframe for the transfer of control and ownership, all while keeping your lender in the loop. To guard against future disputes, lenders also want to know that the planning process involves your entire family, regardless of whether the individuals involved are active in the business. We can help you with the tax, accounting and financial aspects of succession planning, including effective communication with your lender.

The holiday season is in full swing. Your business may want to show its gratitude to employees and customers by giving them gifts or hosting parties. It’s a good idea to understand the tax rules involved. Are they tax deductible by your business and taxable to the recipients? Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees (such as a holiday turkey) aren’t included in their taxable income yet are deductible by you. Holiday parties are 100% deductible if they’re primarily for the benefit of non-highly-paid employees and their families. If customers attend, parties may be partially deductible. Contact us with questions.

At many companies, a wide gulf exists between budgeting and risk management. There are several general types of threats to assess as you draw up next year’s budget. First, think about competitive risks. You may need to spend more on marketing and advertising to compete against a tough rival, or you could be able to channel more dollars into production if you’re in a strong market position. Also identify compliance risks. How will regulatory rules change next year and what will be the impact on your budget? Last, consider internal risks. Arguably the biggest of these is fraud, but also look into hiring, training and technology costs. Let us help you with the process from start to finish.

Probate is the process of settling an estate and passing legal title of ownership of assets to heirs. If the deceased person has a valid will, probate begins when the executor named in the will presents the document in the county courthouse. If there’s no will, the court will appoint someone to administer the estate. Thereafter, this person becomes the estate’s legal representative. Also, probate is predicated on state law, so the exact process varies from state to state. Certain assets are automatically exempt from probate, but you also may be able to avoid the process with additional planning. Contact us for more details.

If you’re working on your year-end tax plan, you’d be wise to take these 2020 cost-of-living amounts into consideration.

Estate planning is often associated with the division of your assets, and this is certainly a key component. It’s typically accomplished, for the most part, by drafting a will, which is the foundation of an estate plan. With a valid will, you determine who gets what. It can cover everything from the securities in your portfolio to personal property, such as cars, artwork or other family heirlooms. In contrast, if you die without a will (referred to as dying intestate), state law will control the disposition of your assets. This may result in unintended consequences. Contact us with any questions.

At many companies, a wide gulf exists between budgeting and risk management. There are several general types of threats to assess as you draw up next year’s budget. First, think about competitive risks. You may need to spend more on marketing and advertising to compete against a tough rival, or you could be able to channel more dollars into production if you’re in a strong market position. Also identify compliance risks. How will regulatory rules change next year and what will be the impact on your budget? Last, consider internal risks. Arguably the biggest of these is fraud, but also look into hiring, training and technology costs. Let us help you with the process from start to finish.

Did you know that naming the wrong beneficiary to a life insurance policy can result in unintended outcomes? Learn about three pitfalls to avoid.

Device policies pertaining to smartphones and other technology tools are evolving. Loose bring your own device (BYOD) policies are giving way to stricter choose your own device (CYOD) or corporate-owned, personally enabled (COPE) policies. A CYOD policy lets employees buy a device for combined personal/work use from a company-approved list. Generally, the employee owns the device while the business owns the SIM card and any proprietary data. Under a COPE policy, the employer buys and owns the device, which is intended for business use. The cost is higher, but it comes with greater control. We can help you analyze the potential costs of a device policy and make the right choice.

Under current law, there are two valuable depreciation-related tools that may help your business reduce its 2019 tax liability. To benefit from the Sec. 179 and bonus depreciation deductions, you must buy eligible machinery, equipment, furniture or other assets and place them into service by the end of the tax year. In other words, you can claim a full deduction for 2019 (up to certain limits) even if you acquire assets and place them in service during the last days of the year. It’s important to note that these deductions may also be used for business vehicles. But, depending on the type of vehicle, additional limits may apply. Please contact us to learn more.

A relatively easy way to reduce your taxable estate is to make annual exclusion gifts of $15,000 per recipient for 2019 and 2020. But what if you want to give away more without dipping into your lifetime gift and estate tax exemption of $11.40 million (for 2019)? An alternative strategy is to pay medical expenses on behalf of someone directly to a health care provider. Those payments are exempt from gift tax above and beyond any amount covered by the annual gift tax exclusion. The same is true for paying the tuition expenses of a student directly to the school. Contact us for details.

Your lender may not be top of mind as you create a succession plan, but it’s a pertinent party. One key issue that lenders want a succession plan to address is, simply, who’s your successor? Follow a thoughtful process to choosing the right person then set a timeframe for the transfer of control and ownership, all while keeping your lender in the loop. To guard against future disputes, lenders also want to know that the planning process involves your entire family, regardless of whether the individuals involved are active in the business. We can help you with the tax, accounting and financial aspects of succession planning, including effective communication with your lender.

The holiday season is in full swing. Your business may want to show its gratitude to employees and customers by giving them gifts or hosting parties. It’s a good idea to understand the tax rules involved. Are they tax deductible by your business and taxable to the recipients? Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees (such as a holiday turkey) aren’t included in their taxable income yet are deductible by you. Holiday parties are 100% deductible if they’re primarily for the benefit of non-highly-paid employees and their families. If customers attend, parties may be partially deductible. Contact us with questions.

At many companies, a wide gulf exists between budgeting and risk management. There are several general types of threats to assess as you draw up next year’s budget. First, think about competitive risks. You may need to spend more on marketing and advertising to compete against a tough rival, or you could be able to channel more dollars into production if you’re in a strong market position. Also identify compliance risks. How will regulatory rules change next year and what will be the impact on your budget? Last, consider internal risks. Arguably the biggest of these is fraud, but also look into hiring, training and technology costs. Let us help you with the process from start to finish.

Probate is the process of settling an estate and passing legal title of ownership of assets to heirs. If the deceased person has a valid will, probate begins when the executor named in the will presents the document in the county courthouse. If there’s no will, the court will appoint someone to administer the estate. Thereafter, this person becomes the estate’s legal representative. Also, probate is predicated on state law, so the exact process varies from state to state. Certain assets are automatically exempt from probate, but you also may be able to avoid the process with additional planning. Contact us for more details.

If you’re working on your year-end tax plan, you’d be wise to take these 2020 cost-of-living amounts into consideration.

Estate planning is often associated with the division of your assets, and this is certainly a key component. It’s typically accomplished, for the most part, by drafting a will, which is the foundation of an estate plan. With a valid will, you determine who gets what. It can cover everything from the securities in your portfolio to personal property, such as cars, artwork or other family heirlooms. In contrast, if you die without a will (referred to as dying intestate), state law will control the disposition of your assets. This may result in unintended consequences. Contact us with any questions.