Posts by Lucida
Fixing 401(k) Plan Errors Without IRS Involvement: What Employers Should Know
Question: Our company recently began offering a 401(k) plan. So far, things are running smoothly, but we know mistakes can happen. We’ve heard the IRS has a program for plan sponsors to fix mistakes. Are there some errors we can correct without IRS involvement? Answer: Yes. The IRS’s Employee Plans Compliance Resolution System (EPCRS) provides…
Read MoreTax-Smart Ways to Get Cash Out of Your C Corporation
If your family business operates as a C corporation, watch out for double taxation whenever you withdraw cash from the company. If the corporation has current or accumulated earnings and profits, the IRS generally considers payments to shareholders to be taxable dividends — unless there’s proof payments were for another purpose (such as compensation for…
Read More4 Types of Deductible Interest Expense for Individuals
How can you deduct interest expense on your 2025 individual federal income tax return and beyond? Let us count the ways. Although personal interest expense isn’t deductible in general — for example, you can’t deduct credit card interest — there are four types of interest expense that are deductible if you meet the requirements. As…
Read MoreFunding Long-Term Care Expenses: What Are Your Options?
Planning for the future involves more than simply saving money — it requires careful financial and estate planning, especially when considering the high cost of long-term care. Few things can derail an estate plan as quickly as unexpected long-term care (LTC) expenses. Many individuals will require some form of care later in life, whether it’s…
Read MoreAvoid These 6 Estate Planning Pitfalls
No one likes to contemplate his or her own mortality, but ignoring the need for an estate plan or procrastinating in the creation of one is asking for trouble. If you haven’t started the process, don’t delay any longer. Working with experienced professionals who provide tax accounting solutions Brookfield residents rely on can help ensure…
Read MoreFirst-Time’ Homebuyers: A Window of Opportunity
If you’re in the market for a new home, your IRA might be a source of funding, thanks to a special exception in the tax law. Background: Normally, you’re required to pay a 10% tax penalty if you withdraw funds from an IRA before reaching age 59½. However, the tax law includes several exceptions that…
Read MoreWhat Parents Need to Know About the Kiddie Tax
If you’re a parent of minor children or of one or more college students, you’re likely thinking about them as you prepare to file your 2025 federal tax return or begin tax planning for 2026. Do they make you eligible for the Child Tax Credit? For the Credit for Other Dependents? For education-related tax breaks?…
Read MoreHow Philanthropy Can Strengthen Your Family Business
If you own a family business, chances are the company’s name and reputation are well-known in the community. That makes your business more than just a source of income — it reflects your values, history, and future. And that’s exactly why charitable giving isn’t just a nice gesture — it’s a smart business strategy. With…
Read MoreHit the Breaks: 2026 Tax Write-Offs for Business Driving
At the end of last year, the IRS announced its annual inflation adjustments to the optional standard mileage rates used to calculate the deductible vehicle operating costs for business, charitable, medical, or moving purposes. And there’s good news for those who drive for work: the cents-per-mile deduction increased for this year — even though the…
Read MoreKeeping Senior Family Members Safe from Fraud
Elder fraud has long been a problem, and it’s getting worse. In 2023, the FBI received 14% more elder fraud complaints than the previous year, with financial losses from such schemes rising 11%. To protect your parents, grandparents and other older family members and friends from potentially catastrophic financial losses, learn how criminals commonly target…
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