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How to make sure you keep your retirement money

Most people, regardless of how much income they earn, are taught that setting aside money in an employer-sponsored and/or individual retirement account is the best way to ensure that money will be available in the future. But the truth is, that’s only partially right. While saving and investing can certainly help you to build up a nice-sized account, what really matters is how much income you’ll be able to put in YOUR pocket when you need it, and whether or not it will be enough – after ta...

March 26, 2020

What is income shifting, and how can it reduce my tax burden?

The ability to create more cash flow from the money you already make is a key step towards building true wealth. One way to accomplish this is through a strategy known as income shifting.  Income shifting is not a new concept. In fact, this strategy has been used by the wealthy for generations to help with legally sheltering their income from taxation. Income shifting is defined as the transfer of money within a business or between family members with the purpose of decreasing tax liability...

March 16, 2020

What changes does the Secure Act bring? How might physicians be affected?

At the end of 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) act was signed into law, bringing in new changes and adaptations with regards to retirement savings.  On the whole, the changes are positive. The bill appears to acknowledge that we’re all living a little longer, incentivizing businesses to provide savings plans to a wider range of employees, and allowing a longer time period for contributions. However, there are fears that the change could hurt benefic...

February 25, 2020

Where to start with choosing an entity

Okay, let’s start at the very beginning - what actually is an entity? A business entity is an organization that has been created by one or more people to carry on a trade or business. We’re going to look at some of the most common types in this blog.  Just like choosing the best plan of care for a patient, deciding on the right business entity can impact both your short and long-term financial results.  The structure that your practice assumes is important in determining how much m...

January 29, 2020

5 success rules for your S-corp

So you’ve set yourself up as an S-corporation.  As your business grows, it’s great to think about yourself as a separate entity from the business, so you’re not muddying the waters between personal and work finances, and you’re protected personally from liability.  While you’re legally a separate entity from your business under S-Corp, it’s important to consider yourself an employee in the business. We get a lot of questions about the details of this structure, and how best...

January 3, 2020

Tax Tip Tuesday: Passive Income

*this is a transcript taken from our weekly Tax Tip Tuesday videos on Youtube.  You can watch it here.Hey everyone. Welcome to another Tax Tip Tuesday. My name is Alexis Gallati with Cerebral Tax Advisors, and today we're going to talk about passive income. Well, basically I'm just going to explain what exactly passive income is. And it's pretty simple.It's not active income, which is income that you're actively earning, like your W-2 wage, or me going and doing tax work, or you doing your ...

December 18, 2019

Tax Tip Tuesday- 2019 Year-end tax tips to lower your liability

*this is a transcript taken from our Tax Tip Tuesday videos. You can find the full version on Youtube here.Hey everyone, welcome to another Tax Tip Tuesday. My name is Alexis Gallati, and I'm with Cerebral Tax Advisors. Now, what we're gonna talk about today is the Section 199A deduction, and how you can actually go and lower your taxable liability so you can take advantage of this deduction. Now those of you that aren't familiar with it, that is that 20% automatic deduction that business owners...

December 10, 2019

Tax Tip Tuesday- The Augusta Rule

*this is a transcript taken from our Tax Tip Tuesday videos.  You can watch the whole thing on Youtube here....

December 4, 2019

How Locum Tenens can register a tax ‘home’ while working in different states

Becoming a Locum Tenens Physician is ideal if you want to take your work across the country. You’ll be in a position of greater work flexibility, be able to explore different states and cities, and covered for your work-based transport and accommodation as you go.  Though you’ll be working all over the map, you will have to maintain a permanent ‘home’ for tax reasons. So, if you’re fresh out of residency and on the road, how do you go about registering a permanent tax home? Becomi...

December 3, 2019

Tax Tip Tuesday: Employee vs. independent contractor

Hey everyone, welcome to another Tax Tip Tuesday. Today, I'm going to be discussing the difference between employees versus independent contractors. This is a really important topic because if you try to be independent employee and you're actually an employee or... Sorry, I just got that screwed up. If you're trying to be an independent contractor and you're really an employee, then you as the employer could get in big trouble and have to pay a lot of additional penalties and interest and fines ...

November 20, 2019

Tax Tip Tuesday: Records to keep when building a house

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 13, 2019

How industry expertise and a detailed plan will save one physician over $145,000 over the next 5 years

When David reached out to Cerebral for help, tax planning became more than just saving money. He was able to walk away with a long term financial plan.David had never had a tax conversation that focused on his individual needs. An internal medical Physician and family man, he wanted to find an expert who catered to physician families and could understand his specific situation. “I was looking for the exact opposite of what I had. Someone who would come up with options available to me to lower ...

November 7, 2019

Tax Tip Tuesday- Health Savings Accounts

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 5, 2019

Tax Tip Tuesday- Backdoor Roth

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

October 29, 2019

How Locum Tenens can use Per Diem rules and rates to stop tracking receipts

Are you familiar with the Per Diem rule? If you’re a physician doing locum tenens work, you want to be! Per Diem comes from the Latin meaning ‘By Day’, and so the ‘Per Diem rule’ refers to a daily travel allowance. You can make use of the Per Diem rule to compensate for lodgings, meals and incidental expenses you incur when traveling on business. This fixed allowance can be used in place of your actual expenses.  If you’re a physician who does a lot of locum work, the per d...

October 28, 2019

Tax Tip Tuesday: CPAs verses EAs

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here.Hey, everyone. It's Tax Tip Tuesday. Today I'm going to be talking about CPAs versus EAs. Most of you know what a CPA is, certified public accountant, but some of you might not know what enrolled agents are. I'm an enrolled agent. I thought I'd talk about both and the similarities and differences just so you're more educated.As I said, most of you know what a CPA is. A CPA has to complete abou...

October 22, 2019

Tax Tip Tuesday- Hiring Your Kids

*this transcript was taken from our Tax Tip Tuesday series on Youtube. You can watch the video here.Hey everyone, I hope you're ready for another Tax Tip Tuesday. So I get a lot of questions about hiring your kids, and the type of jobs they can do. So I generally recommend that you only hire kids if they're seven or older. So there are tax court cases out there that basically make that the safe age.Now, there are some people that will hire their kids as models for their website or other sor...

October 16, 2019

Can I write off a cruise?

On the week of September 16th I was with my family on a Disney Halloween themed cruise ship, enjoying the all encompassing experience of being out in the middle of the ocean for four nights. I have to admit, I am not a boat person and this tripped confirmed it! We had rough seas going in and out of Port Canaveral and my eldest son, Grant, and I didn’t take well to the increase in motion. However, Disney being Disney, they put on a heck of a cruise with great entertainment and food. Disney magi...

October 10, 2019

Be Aware of Tax Issues While Working Abroad

Here are three quick things to know about working abroad. Issue 1: Section 199A To qualify for the Section 199A deduction, your business income must be effectively connected with the conduct of a trade or business within the United States. The preamble to the proposed Section 199A regulations clarified that in almost all circumstances, this means the income has to be U.S.-source income to qualify. Under the tax law, you source your compensation for personal services based on where you perform th...

October 7, 2019

Creating More Business Meal Tax Deductions After the TCJA

Here’s good news for business meals: the Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules. You are going to like these rules. Restaurants and Bars Question 1. If, for business reasons, you take a customer to breakfast, lunch, or dinner at a restaurant or hotel, or to a bar for a few drinks...

October 2, 2019

Impact of Death, Retirement, and Disability on the 179 Deduction

What tax effect would death, retirement, or disability have on you or your business? Here’s an easy example to illustrate. Let’s say that in 2017, you purchased for business use a pickup truck with a gross vehicle weight rating greater than 6,000 pounds. Asserting that you use the pickup 100 percent for business, you expensed the entire $55,000 cost. What happens to that $55,000 expensed amount if you die, retire, or become disabled before the end of the vehicle’s five-year depreciation pe...

September 30, 2019

Take Advantage of the 199A Deduction for 2019

If you operate your business as a pass-through entity, such as a proprietorship, partnership, or S corporation, the profits of that business can generate the Section 199A tax deduction. No-Problem Businesses You qualify for the Section 199A deduction—period, regardless of pass-through business type—when you have pass-through qualified business income (QBI), and 2019 Form 1040 taxable income equal to or less than $160,700 single (and head of household) or $321,400 married, filing join...

September 25, 2019

Roth IRA versus Traditional IRA: Which Is Better for You?

Roth IRAs tend to get a lot of hype, and for good reason: because you pay the taxes up front, your eventual withdrawals (assuming you meet the age and holding-period requirements—more on these below) are completely tax-free. While we like “tax-free” as much as the next person, there are times when a traditional IRA will put more money in your pocket than a Roth would. Making the Decision on What’s Best Example. Say that your tax rate is 32 percent and that you will invest $5,000 a ye...

September 23, 2019

Beware: IRS Error in Rental Property Deduction Publication

Here’s a heads-up on mortgage insurance. Personal Residence Mortgage Insurance The deduction for mortgage insurance on a qualified residence ended on December 31, 2017. But don’t give up on the deduction. The personal residence mortgage insurance deduction is part of what is called “tax extenders,” and it’s highly possible that lawmakers will reinstate the deduction retroactively for all of 2018 and 2019. That’s the good news. The bad news is that to claim the retroactive deduction w...

September 16, 2019

Incorporation Is Not for Everyone

If you’re not good at paperwork, the corporate form of business is probably not for you. Let me tell you about a tax court case involving William H. Bruecher III. He learned a lesson by paying more than $27,000 in taxes on monies his corporation supposedly loaned to him. Mr. Bruecher’s corporation did not pay him a salary; rather, the corporation paid his personal expenses, classifying the payments as advances. Advance Account on Corporate Books Advances handled properly do not create a tax ...

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