Tag Archives: Masterpiece Accounting Group

2017 Tax Year is Almost Behind Us. How Will the New Tax Laws Affect You and Your Business in 2018?

2017 Tax Year is Almost Behind Us. How Will the New Tax Laws Affect You and Your Business in 2018? by Nadine Riley{8:24 minutes to read}  The chatter seems to have decreased regarding the new tax laws, but the uncertainty still seems rather high. The Tax Cuts and Job Act (H.R.1), which is now enacted, affects each of us and our businesses. The intent of the law is explicit in its title, however, in practicality some areas are still too complex to see how they tabulate on paper. For the most part, the effective date for enactment of the law is January 1, 2018, but some parts of the law (such as depreciation) do affect items purchased in 2017. Continue reading

2017 Year-End Tax Guide for Businesses

2017 Year-End Tax Guide for Businesses by Nadine Riley*Due to the weekly changes and updates to the proposed tax law, some of this article’s content may have changed. Once the law is passed, we will update you.

{7:06 minutes to read} Now that each chamber of Congress has met, i.e. the House and the Senate, we now await the final verdict regarding how they will reconcile their differences and decide what will be the new tax law. Continue reading

Where Are We With Tax Reform? (Business/Entrepreneur)

“Planning is a process of choosing among those many options.

If we do not choose to plan, then we choose to have others plan for us.”

–  Richard I. Winwood   

Where Are We With Tax Reform? (Business/Entrepreneur) by Nadine Riley{4:42 minutes to read} Hope you are enjoying the warm sunny days of the season.

I can’t help but wonder, is it just me, or is it becoming a challenge to stay on track with what’s going in Washington with regards to federal tax reform? The uncertainties are evident. The Trump administration released a report on July 28, 2017 regarding the status of all the proposed changes. As it relates to tax reform, the most current report that we are aware of was released on September 27th, 2017. If what’s promised is implemented, individuals/families and businesses will be affected. Continue reading

Where Are We With Tax Reform? (Personal)

“Planning is a process of choosing among those many options.

If we do not choose to plan, then we choose to have others plan for us.”

–  Richard I. Winwood   

Where Are We With Tax Reform? (Personal) by Nadine Riley{5:12 minutes to read} Hope you are enjoying the warm sunny days of the season.

I can’t help but wonder, is it just me, or is it becoming a challenge to stay on track with what’s going in Washington with regards to federal tax reform? The uncertainties are evident. The Trump administration released a report on July 28, 2017 regarding the status of all the proposed changes. As it relates to tax reform, the most current report that we are aware of was released on April 26, 2017. If what’s promised is implemented, individuals/families and businesses will be affected. Continue reading

Insurance Policies Part 2: Business

Insurance Policies Part 2: Business by Nadine Riley{4:18 minutes to read} In our last article, we looked at the various types of personal insurance an individual should have in order to protect their most valuable asset: themselves. In this blog, we look at the various insurance policies we should have when we are a business owner. Continue reading

Insurance Policies Part 1: Personal

Insurance Policies Part 1: Personal by Nadine Riley{4:54 minutes to read} Oftentimes, the demands of everyday living make us forget about protecting our most valuable asset, ourselves. We protect our identity, our homes, vehicles, phones, appliances, etc. without thinking twice about it. Our day is filled with the to-dos of today, the plans for tomorrow and the regrets of yesterday, but when was the last time we slowed down to think about life’s what-ifs?

  • I am the main breadwinner of my home. What if my employer decides to downsize (i.e. your service is no longer needed)?
  • What if I lose my largest client?
  • What if that pain is not related to gas, heartburn, sciatica, migraine, etc., but related to a rare disease that scientists are still researching?

These are just a few of the challenges we may face on this side of life.

Insurance is an essential and integral part of our finances. It provides protection if something happens to us. In this article, we will explore some common (but often overlooked) types of insurance in an effort to help you understand why they are necessary and which may apply to you and/or your business. We will also provide some real life examples in the hope that you may be able to relate.

Personal Insurance Policies

Disability Insurance – If someone is unable to work (in a full or partial capacity) due to a sickness or injury, a disability insurance policy will provide dollars to help them continue their lifestyle and pay their bills. Most employees are covered under a group policy; however, the policy may not be enough. A decent disability insurance policy should cover at least 60% of your income. The payout is generally tax-free if you have paid the premium with after-tax dollars.

Real Life Example: An OB-GYN hurt his back while at the hospital and could no longer practice. Through his disability insurance, he received an equivalent, tax-free salary with a yearly cost of living adjustment and has been able to move on to create a charity for young mothers in Haiti.

Life Insurance Life insurance, though not the most sought after type of insurance, is still one of the key insurances. Life Insurance provides a tax free sum of money to your family to help them replace you as the essential income producing part of the family. In the past, life insurance was seen solely as a protection for your loved ones after you die, but in recent years, it has been used as a savings vehicle. This makes it more attractive for single individuals.

Real Life Example: A dentist in midtown Manhattan passed away in 2016. His family and kids received over $5 million in cash because he had the proper coverage. Even with all of the emotional anguish, they have been financially self-sufficient because of his foresight and planning.

Long Term Care – Long Term Care is an insurance that helps provide dollars in case you or a loved one needs extended care, either in a facility or through an in-home health care worker. Medicare only provides coverage for a short period of time, so any additional care costs fall on the family. The ideal time to think about Long Term Care is when you are young or in your mid 50s. If you are financially responsible for a member of the older generation, you can obtain a policy for your parents.

Real Life Example: I have a client whose father has been in a medical facility for 6 years at a rate of $14,000 per month. Without LTC coverage, his family would be shouldering this burden.

In our next article, we will cover the types of insurance one should have when they are a business owner. As an employee, we had a steady stream of income and protection through our employer’s group policies. Now both income and insurance coverage are up to us.

Nadine Riley, CPA
Founder, Masterpiece Accounting Group
Phone: (212) 966-9301
Email: info@mpagroupllc.com

Taxes: So What’s Next?

Taxes: So What's Next? by Nadine Riley{3:36 minutes to read} What will my tax bill look like in 2017 under the new president? In the past weeks, I have been asked this question many times.

If you are also pondering this question, let’s recap in more detail some of the tax changes Mr. Trump proposed. In addition to Trump’s plan, we will also examine the blueprint delivered by the Ways and Means Committee Republicans (in June 2016) regarding the proposed rebuilding of America. (You can read more about Ways and Means here.) Continue reading

Financial Mgmt Tools for Entrepreneurs and Small Businesses

Financial Mgmt Tools for Entrepreneurs and Small Businesses by Nadine Riley{4:36 minutes to read} Being a self-employed entrepreneur or small business owner can be exciting and frightening all at the same time. It is good to be the one who is calling the shots, but it is difficult to keep your fingers on all the necessary pulses so that you and/or your business thrive.

One of the most essential and useful tools in any business toolbox for a small business is proper bookkeeping. Without it, how do you account for all the money that flows in and out of your company? Is it possible that your business is losing cash at an accelerated rate without you being aware of it? You say your business is profitable, but you still find yourself with cash-flow problems. Continue reading

Are You Living From Paycheck to Paycheck?

Are You Living From Paycheck to Paycheck? by Nadine Riley{4:36 minutes to read} Everyone is familiar with the expression “living from paycheck to paycheck.” And most of us know people who are actually living from paycheck to paycheck, including ourselves in some cases.

What you may find surprising, however, is that it doesn’t really matter what your income is. Most believe this lifestyle is reserved for low- to medium-income families, but there are people with very high incomes who have the same problem. Continue reading