Month: May 2020

What are the Best Ways to Protect Your Inheritance from Taxes?

Written by Paul Belfiore on May 29, 2020. Posted in Blog, Taxes.

Nashua, NH Resident Needs Help

If the property and other inheritance is below a certain dollar threshold, this will not be taxed. The estate tax can be up to 40% of the value of the inheritance, depending on how much the inheritance totals. In the United States this threshold is just over $11.5 million. One way to avoid having your loved ones pay exorbitant taxes on their inheritance is by giving away your assets prior to your death. $15,000 can be gifted each year to an individual without paying tax.

What Are the CARES Tax Breaks for Businesses?

Written by Paul Belfiore on May 15, 2020. Posted in Blog, Taxes.

Amherst, NH Business Owner Seeks Advice

There are several tax breaks for businesses under the CARES (Coronavirus Aid, Relief and Economic Security) Act. Charitable contributions are adjusted from a maximum 10% of the company’s taxable income, to 25% of cash donations. Payment on the employer share of Social Security tax on payroll can be deferred until the end of the year and a tax credit is available of up to $5,000 per employee. The cap on a business loss has also been suspended.

How Will I Be Taxed in Retirement?

Written by Paul Belfiore on May 1, 2020. Posted in Blog, Taxes.

A traditional IRA and a 401(k) are tax-deferred retirement accounts. The money is left in these types of accounts to grow and collect dividends. However, when you start taking withdrawals you will pay taxes. Roth IRAs differ in that contributions are not tax-deductible, but when you begin taking withdrawals this will be tax-free. A portion of your social security benefits may be taxed if your provisional income exceeds $25,000.