January 19, 2019

DK Jan Newsletter

Spotlight on Pass-Through Entities under the Tax Cuts and Jobs Act

The federal income tax treatment of business entities has changed dramatically under the new tax law. For tax years beginning after December 31, 2017, C corporations will pay a 21% flat tax rate. Meanwhile, income from pass-through businesses will still be taxed at the owners’ rates but owners will get a valuable new tax deduction. So which type of entity is best under the new rules?


Let’s Take a Closer Look at New Business Tax Reforms

There’s more to the new tax law for businesses than just lower income tax rates. Here’s an overview of some lesser-known business tax provisions, including an explanation of some complex changes that pass-through entities will face under the new law.


    Don’t Take Chances: Buy Enough Disability Insurance

Suffering a disability so severe that you are unable to work may seem remote, but unfortunately, it is a distinct possibility. Here’s an explanation of how an individual disability insurance policy can provide added protection, along with some information about how disability benefits are taxed.


    Avoiding the 10% Penalty On Early IRA Withdrawals

Do you have a traditional IRA? You may have wondered whether you should take money out of it when financial needs come up. If you are under age 59 1/2, there’s generally a 10% penalty for early withdrawals — in addition to any regular income tax on the amount. However, there are exceptions to the penalty, as explained in this article.


Insuring Employees Who Drive Their Own Cars

Employees who drive their own cars on business can save your company the cost of owning or leasing a fleet as well as eliminate having to account for personal versus business use or worry about non-employees driving the vehicles. But there are liability consequences and you need to take steps to protect your business. This article shows you how.