Category: Potpourri of Tax Topics

Retirement Withdrawals, Home Purchases and the 10% Early Withdrawal Penalty

If you take money out of a retirement account to buy a house (for example to make a down payment), you can avoid the 10% early withdrawal penalty … but only on IRA withdrawals. The rules on retirement withdrawals are tricky and vary between 401(k) accounts and IRAs. With home purchases, you can take money [...]
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Making IRA Contributions After the End of the Year: Good or Bad?

I usually advise my clients against making IRA contributions for the prior year after the year has ended. Let’s back up. What are we even talking about here? IRA Contributions After Year-End A taxpayer who qualifies to make a deductible IRA contribution (WARNING: not everyone does qualify!) can make a contribution up to the due [...]
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Revisiting (Again!) Shareholder Wages and the ERC

The National Association of Tax Professionals addressed the subject of shareholder wages and the employee retention credit in their weekly news alert last week. In the “You Make the Call” segment, the question was regarding whether or not shareholder wages count for the ERC. NATP’s judgment is, NO the wages do not count. I respect […]

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Tilting at Windmills Again, Or, Don’t Clients Have a Responsibility Too?

Here I go again on a writing spree about articles from the “experts” and the complaints of clients about how accountants aren’t doing enough. The latest comes from a survey from Canopy, published in Accounting Today (link here) which as usual maligns accountants, we’re failing our clients, blah blah blah. From the survey: Over half […]

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