Category: Tax Planning

250X250 SBT Brian Livesay San Diego

Brian Livesay The San Diego Retirement Guardian | Year End Tax Planning

See My Who IsBrian Livesay The San Diego Retirement Guardian says “Knowing were the tax payer stands as the year comes to an end ensures the least amount of required taxes are paid by the tax payer. Yearend planning is essential. The tax code is complicated and advice should come from a qualified tax advisor.”

Tax planning is essential to get the most benefit from the tax code. Knowing what to look for as the year draws to an end will benefit the tax payer a great deal when it comes time to file a tax return. Using the tax code to avoid paying too much in taxes is legal and should be done by every tax payer. There are a number of areas were a tax payer has some control over the timing of payments or income that will benefit the tax payer when the yearend return is filed.

First knowing how much income for the year and allowable deductions the tax payer has gives the tax payer an idea of which tax bracket they will fall into and how close they are to the next tax bracket. Avoiding going into the next tax bracket by not taking any controllably timed income at year end will limit the tax payer’s tax burden for the year.

Deductions can also help control which tax bracket the tax payer will fall into for the tax year. If the tax payer’s Itemized Deductions are greater than the Stand Deduction the tax payer has some flexibility in the timing of payments that will reduce their taxable income for the year. Prepaying property taxes allows the tax payer to take a bigger deduction in the year the payments were made thus reducing taxable income by the amount of prepayment if the tax payer was already able to Itemize for the year. Making more charitable donations also by year end is another way to reduce taxable income. If the tax payer has medical expenses that exceed 10% of their Adjusted Gross Income the tax payer may what to schedule needed medical or dental procedures before year end to ensure the expenses can be deducted on the current year’s tax return.

Another area were timing can be used to benefit the tax payer is investment income. If a tax payer has recognized losses in a given year the taxpayer may want to sell any stocks that have appreciated in value since the lose will offset the gain. The tax payers Adjusted Gross Income will not be affected by these gains allowing the tax payer to avoid paying any tax on the recognized gains.

For more information visit Brian Ray Livesay’s Who Is Page here in the Journal

Brian Ray Livesay The Retirement Guardian
You may contact him at his office
Livesay Capital Solutions Inc.
1761 Hotel Circle S. Ste 360
San Diego, CA 92108
Call at 866-726-0725 / 619-281-8377
Or visit his Web Site

250X250 SBT Brian Livesay San Diego

Brian Livesay San Diego Retirement Guardian |Tax Advantaged Health Savings Accounts

See My Who IsBrian Livesay San Diego Retirement Guardian says “Health Savings Accounts are a unique investment vehicle that if used correctly can add tax free funds to an individual’s finances.”

A Health Savings Account or HSA is a tax advantaged medical savings account. To be eligible for an HSA an individual or family must be enrolled in a High Deductible Health Plan (HDHP). A HDHP has a higher deductible than a traditional health plan and can be considered a catastrophic health plan. These plans are best for younger and healthy individuals with little annual medical requirements. The annual premiums are lower than a traditional health plan which allows an individual to fund the Health Savings Account.

Contributions to an HSA account can only be made while covered under a High Deductible Health Plan.

Once an individual is no longer covered the HAS account remains open and the funds in the account continue to grow tax free until the time of withdrawal. A HSA is very similar to an Individual Retirement Account (IRA) since the accounts are funded with pretax money and grow potentially tax free if the money is used on qualified medical expenses. If the money withdrawn from the account is not used for qualified medical expenses there is a 20% penalty on the withdrawal if taken before age 59 ½. Non-qualified medical expense withdrawals taken after 59 ½ like a Traditional IRA are taxed as ordinary income in the year of the withdrawal.

A unique feature of an HSA account is the ability to make withdrawals and use medical expenses from previous years while covered under the HDHP as qualifying medical expenses to avoid the 20% penalty for non-qualified medical expense withdrawals. As long as the individual has the receipts from the qualifying medical expense the expenses can be used in any year to make an allowable withdrawal from the HSA account. This allows an individual to pay for smaller medical cost in one year and let their money grow tax free inside the HSA then withdrawal money later after it has grown in value tax free using the past paid medical expenses as qualifying medical expenses at the time of withdrawal.

The IRS also allows a onetime transfer from an IRA account to fund a HSA account up to the annual maximum contribution limit for the year. Employers can also contribute to an individual’s HSA account and the money becomes immediately the account owners with no vesting.

A healthy individual with minimum medical needs can potentially grow substantial funds inside the HSA account and later use the funds like a Traditional IRA or as tax free funds using qualified medical expenses at the time of withdrawal.

For more information visit Brian Livesay’s Who Is Page here in the Journal

Or see the article in Small Business Trendsetters

Or the article in CNN iReport ” Statement of Cash Flows: Cash is King”

Brian Livesay The Retirement Guardian
You may contact him at his office
Livesay Capital Solutions Inc.
1761 Hotel Circle S. Ste 360
San Diego, CA 92108
Call at 866-726-0725 / 619-281-8377
Or visit his Web Site

Reuven Rubinson

Reuven I Rubinson San Diego CFO-CPA Financial Advisor | Taxation and Accounting Controversies Effect Business of All Sizes

See My Who IsReuven I Rubinson San Diego CFO-CPA Financial Advisor says “In taxation, the ongoing debate is over what items should have favorable treatment and whether or not we should go to a flat tax.
In accounting, the ongoing debate is over whether we should have one set of rules for all companies or whether small businesses should have a separate set of rules.”

There is also debate over whether the United States should adapt international generally accepted accounting principles, which are principle-based, versus our system, which is more rules-based. There is a convergence between the two, and the question is how much do we adapt and agree upon.

Whatever the outcome of these debates, one thing is clear, every business needs knowledgeable and reliable CFO-CPA Financial Advice.

Too often companies are unaware of many of the things that are going on in their business.

That being the case, almost any business will benefit when they have a discussion with an expert about their policies and procedures as well as their financial system. A major step in improving the company’s bottom line happens when you bring these critical issues into the light of day so they can be evaluated and handled.

As an example, Sarbanes-Oxley (an act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations) was implemented as a response to the Enron and other financial disasters. In many ways, it was overkill and an overreaction. However, the act forced businesses to put their policies and procedures in writing and critically evaluate them.

Most companies realized, in doing this, that there were some duplications and improvements that were absolutely necessary in their business. By forcing companies to take them out of people’s heads and putting them into writing, Sarbanes-Oxley was an invaluable service to businesses.

See more about Reuven I Rubinson CFO-CPA Financial Advisor by visiting
See on CNN
See on Small Business Trendsetters
Or his office 10601 Tierrasanta Blvd., #177, San Diego, CA 92124
Or by calling 858-344-0864

250X250 SBT Brian Livesay San Diego

Brian Livesay San Diego Financial and Tax Planner | Reduce Risk and Build a Life Plan

See My Who IsBrian Livesay San Diego Financial and Tax Planner says “I like to think of a holistic approach, combining many important areas of finance into one life-plan. Not just financial planning, but a system more aptly described as Life-Planning.”

When you combine three components, tax planning, retirement planning and risk-reduction you get what can best be called a “Tax-Free Retirement Income System” and that is Life Planning.

The most important component of your life plan is risk reduction.

Start your plan with risk-reduction because no matter how great your track-record of building wealth is, your approach must provide more safety and security than traditional financial planning.

For the most part, the way risk management is addressed in financial planning is something like: “You’ve got this nice little pie chart here; you’ve got so much in these different types of investments, x amount here in small-company stocks, in mid-company stocks, growth and value… and there’s a little bit of bonds in there too, so that should significantly reduce the risk for you.”

Unfortunately that is not always the case, and as a matter of fact there are far too many people who are positioned in high-risk portfolios right now. Because we’ve had a five year market run-up, too many people underestimate their level of risk, focusing on the opportunity cost of exiting the market, rather than the peril of having most or even all of their assets in fluctuating investments, with no downside protection. You must implement real, tried-and true methods to reduce your risk and plan a lifetime of income you can never out-live.

Another important part of Risk-Reduction is protection from financial catastrophe that often devastates individuals and their families due to critical, chronic, or terminal illness. Right now, 3 in 5 bankruptcies in the United States are filed due to medical reasons. Simply put, if you can’t work, you can’t pay; if you are responsible for your family, an elderly parent or grandparent, it’s even more devastating.

When it comes to Life-Planning, this problem is not just a pothole or another bump in the road. It’s a sink-hole and one that most people will never climb out of. Your life-plans must equip you to handle future medical costs while building wealth at the same time. That adds up to greater peace of mind and enjoyment of life in the present.

For more about and by Brian Livesay go to Small Business Trendsetters

or CNN iReport

You may also contact Brian Livesay in his office at 1761 Hotel Circle S., Ste 360, San Diego, CA 92108
Or by Telephone 866-726-0725