For many parents who own small businesses, two of their primary goals are passing on a strong work ethic to their children while also lowering their tax bill.
While many parents work for a large employer and may not have the option to hire their children directly; others who own small businesses may find that employing their children can be a great way to start building that work ethic while also receiving tax benefits.
Significant tax advantages may include tax free income for the children up to the standard deduction, avoiding Social Security, Medicare and federal unemployment taxes, and reducing the parents' tax bill.
In addition, children with earned income can make Roth IRA contributions at a young age to maximize the value of tax-free growth for decades – ultimately creating the potential for a multi-million-dollar Roth IRA in retirement.
If you are interested in learning more about how to incorporate your children into the family business, as well as helping them get started saving for retirement, we think you’ll enjoy this episode. Thanks for listening!
For more details on employing your children, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/hiring-your-children-saving-taxes-and-teaching-responsibility/
On August 1st, 2024, a class action lawsuit was filed against Jerico Pictures, Inc. otherwise known as National Public Data, alleging a massive data breach that appears to impact nearly all Americans.
SpyCloud, a leader in helping businesses avoid cybercrime, reported that their team was able to access and analyze the data and confirmed that 277 million distinct social security numbers were included in the breach. Given the current population of the United States is about 337 million people, most individuals should assume their information was included.
When data breaches like this happen, what should everyday Americans do to reduce the risk that they become the victim of identity theft? In the past, most individuals were careful to avoid giving out their data and then simply hoped that their identity would not be compromised.
With the size and frequency of recent breaches, this is no longer a viable strategy. Individuals must assume that their data is available to identity thieves.
In this month’s podcast, we discuss the steps individuals should be taking now to actively reduce the risk of becoming a victim of identity theft in light of the National Public Data security breach.
If you are interested in learning more about how to protect yourself financially from identity thieves, we think you’ll enjoy this episode. Thanks for listening!
For more details on protecting yourself from identity theft, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/avoiding-identity-theft-when-your-data-is-exposed/
According the Giving USA 2024: Annual Report on Philanthropy, individuals in the United States gave over $374 billion to charity in 2023. Beyond the intrinsic reward of helping others, charitable giving also offers substantial tax benefits if it is approached strategically.
While most individuals choose to simply give to charity via cash, check, or credit card, these options are typically the least tax efficient.
In this month’s podcast we are discussing how various charitable giving strategies such as giving appreciated stock, bunching charitable contributions, making qualified charitable distributions, and utilizing the North Dakota qualified endowment tax credit can significantly increase the tax savings individuals receive from their charitable gifts.
If you are interested in learning more about tax-smart ways of giving to charity, we think you’ll enjoy this episode. Thanks for listening!
For more details on tax smart charitable giving, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/tax-smart-charitable-giving-strategies/
Steve and Nathan have a passion for teaching others about finances and how to build the financial independence that is achievable with the proper planning. In their roles at Prairiewood Wealth Management, both Nathan and Steve focus on providing comprehensive financial advice to ensure their clients have a coordinated plan that covers all aspects of their finances including their investments, insurance, estate plan, and charitable giving goals.
As Certified Public Accountants (CPAs), both Nathan and Steve believe that one of the most overlooked aspects of financial advice is the tax impacts that result. Accordingly, a core focus of the advice they give centers on integrating tax strategy into the overall financial advising process.
Steve and Nathan are excited to share their knowledge through this podcast as well as their blog with the goal of helping you effectively manage your family’s wealth and ensure you have a comprehensive and coordinated plan for your future.
