Many Americans receive disability income, and the question is often asked: Is it taxable? The short answer is: That depends on who paid for it. This article details how and when taxes may apply. A sidebar discusses how much disability coverage an individual may need.
Owners of closely held corporations often want or need to withdraw cash from the business. The simplest way is to distribute the money as a dividend, but that isn’t tax-efficient. This article suggests several other ways to withdraw cash with generally better tax consequences, such as through capital repayments or compensation.
Many people don’t know that you can transfer funds directly from an IRA to a Health Savings Account (HSA) without taxes or penalties. However, a taxpayer may do so only once during his or her lifetime. This article discusses some of the important points to consider when looking into an IRA-to-HSA transfer.
When one of a company’s customers can’t pay up, the business may be able to claim a tax deduction for the “bad debt” under Internal Revenue Code Section 166. To successfully do so, however, the business owner must know how the tax code defines a partially or wholly worthless bad debt. This brief article provides the definition.