Lighthouse HR Group was formed to ensure that companies have access to on-call, as needed HR assistance that fits their culture and budget. Michele Hicks draws on her vast education and experiences to guide her clients into a place of organizational health and legal compliance.
Michele’s strengths lie in her ability to identify issues and design solutions that fit the company’s unique culture so they are able to operate at peak efficiency.
Please click here to read an article Michele wrote on the importance of I-9 Compliance.
For more information, feel free to visit Michele’s website, or contact her at 440.225.9939 or email@example.com.
Our partner and tax consultant, Ed Lyon of AccounTax, Inc. shares some interesting information about how you may be able to write off your next vacation. Follow these tips for compliance:
1. Make all your business appointments before you leave for your trip.
2. Make Sure your Trip is All “Business Travel.”
3. Be sure to deduct all of your on-the-road-expenses for each day you’re away.
4. Sandwich weekends between business days.
5. Make the majority of your trip days count as business days.
Click here to read the full explanation of tips and examples. Ed Lyon has also created an informative webinar to help you understand Section 105 Plans after Obamacare.
To learn more, please contact Ed Lyon at 513-324-2912 or firstname.lastname@example.org.
Michael McCormick, a Cincinnati based CPA and Tax Coach, partners with ClaimLinx to provide timely tax tips and information. Mike has hands-on experience using highly specialized tax planning strategies, and his desire is to help clients avoid paying more taxes than they’re required to pay.
Michael recently released his new book, “Why Didn’t my CPA tell me THAT?”, available on amazon.com. The timely book is a conglomeration of 13 certified tax coaches, each providing a chapter with smart tax advice and planning information.
For more information, feel free to contact Michael at 513.488.1121 or email@example.com.
One of our tax advisors, Dave Toney of AccountTax, offers these tips when lending money to family.
While lending money to a cash-strapped family member or friend is a noble and generous offer, you need to plan ahead before handing over the cash to avoid tax complications.
Let’s say you decide to loan $5,000 to your daughter who’s been out of work for over a year and is having difficulty keeping up with the mortgage payments. While you may be tempted not to charge an interest rate, you should resist the temptation because:
- When you make an interest-free loan to someone, you will be subject to “below market interest rules”. IRS rules state that you need to calculate imaginary interest payments from the borrower, which are then paid to you. You will be required to pay taxes on these interest payments when you file a tax return. Further, if the imaginary interest payments exceed $14,000 for the year, there may be adverse gift and estate tax consequences.
- The exception is for small loans of $10,000 or less. The IRS lets you ignore the rules for small loans as long as the aggregate loan amounts to a single borrower are less than $10,000 and the borrower doesn’t use the loan proceeds to buy or carry income-producing assets.
- In addition, if you don’t charge any interest, or charge interest that is below market rate, then the IRS might consider your loan a gift, especially if there is no formal documentation (i.e. written agreement with payment schedule). It is best to have a written promissory note that includes the interest rate, a repayment schedule showing dates and amounts for all principal and interest, and security or collateral for the loan, such as a residence. Make sure that all parties sign the note so that it’s legally binding.
As long as you charge an interest rate that is at least equal to the applicable federal rate (AFR) approved by the Internal Revenue Service, you can avoid tax complications and unfavorable tax consequences.
If you have questions about the tax implications of loaning a family member money, don’t hesitate to contact us at firstname.lastname@example.org or view our website here.