McCarthy Kaster Guerrero CPA's

Could your traditional 401(k) or IRA balance be too large? Maybe! Contributing as much as you can to tax-deferred retirement accounts can be a good idea. Contributions are pretax or deductible, and tax-deferred compounding can turbocharge growth. But sometimes maximizing tax deferral is counterproductive. This may be true if tax rates increase by the time you pay tax on distributions. Also, retirement plan distributions are taxed at your ordinary-income rate, not your long-term capital gains rate. So you may pay a higher tax rate on dividends and growth than you would if you held the investments in a taxable account. Fortunately, there are strategies that can help. Call us at (702) 898-9000 to learn more.

Many tax law changes went into effect this year. So it’s important to evaluate where your business stands — and where it’s headed — before year end. Tax planning opportunities may still be available, but they’ll become more limited as the calendar winds down. Whether you’re considering equipment purchases, compensation strategies, retirement plan contributions or other tax-saving moves, now is the time to look ahead and review your options. Call us at (702) 898-9000 to bring your 2026 tax strategy into focus.

Businesses have long used bank lockbox services to accelerate collections and reduce work involved in processing checks. Now, technology enables lockbox users to automate many accounts receivable procedures. But other electronic payment methods, including ACH and credit cards, may provide less expensive, yet effective, solutions. To determine what makes sense for your organization, evaluate the volume of paper checks you receive. If it’s high, you might benefit from a lockbox service. Otherwise, consider accepting paper checks while steering customers to electronic methods. Talk to your bank about its services, and call us at (702) 898-9000 for help calculating your current payment-processing costs.

Tax returns and financial statements are important. But you know we can do so much more, right? Think of us as your year-round, human source of practical guidance. We can help you better understand the ups and downs of your cash flow, spot opportunities to cut costs or improve profitability, and plan for growth with greater confidence. Call us at (702) 898-9000 to learn more and get the strategic support you need to achieve your business goals.

Disability insurance is a valuable benefit provided by many employers. It replaces a portion of the insured person’s income — typically 45% to 65% of pre-disability earnings. But in some cases, income taxes can take a bite out of disability benefits. Taxability usually hinges on who paid the premiums. If your employer paid them, the payouts from the policy generally will be taxed to you just as if the income were paid directly to you by your employer. If you paid the premiums, the payments you receive generally won’t be taxable. State tax treatment of disability benefits varies. Contact us at (702) 898-9000 for help assessing how much disability coverage you need depending on the tax consequences and other factors.

Owning assets jointly with your adult child can invite unwelcome tax consequences that may outweigh potential benefits. For example, owning an asset together as “joint tenants with right of survivorship” can open up transfer tax exposure. If you add your child to the title of property you already own, it may be considered a taxable gift of half the property’s value. And when you die, half of the property’s value will be included in your taxable estate. A properly designed trust can be a more tax-efficient option. Call us at (702) 898-9000 for details.

A business valuation prepared by a qualified professional can play a critical role in transactions and strategic decisions. These include business sales, M&As, litigation, estate planning and buy-sell agreements. Because valuation professionals analyze a wide range of qualitative and quantitative factors, the process can reveal opportunities to boost performance and maximize return on investment. Understanding key concepts — including fair market value, fair value, going-concern value, and valuation premiums and discounts — helps owners interpret results and make more informed decisions. Call us at (702) 898-9000 to learn more.

Business owners: Are you or your employees planning to go “back to school” soon? Two types of work-related education costs may qualify for business tax breaks: 1) those required to retain an existing job, license or professional status, and 2) those directly tied to maintaining or improving skills for a current trade or business. Deductible expenses can include tuition, books, supplies and possibly travel if the primary purpose of the trip is business-related education. However, you can’t deduct costs for education that help meet the minimum qualifications for a position or to qualify for a new trade or business. Contact us at (702) 898-9000 to learn the ABCs of work-related education expense deductions.

If your child is heading to college this fall, tax breaks may be available. For example, you might be eligible for the American Opportunity Tax Credit (AOTC) of up to $2,500 per student for the first four years of college. But the AOTC is phased out for married joint filers with modified adjusted gross income between $160,000 and $180,000 (between $80,000 and $90,000 for heads of households). If your child has a tax-advantaged education account, such as a 529 plan, tax-free withdrawals can be taken to pay qualified expenses. But expenses paid with tax-free withdrawals can’t be used to claim the AOTC. Call us at (702) 898-9000 to discuss these and other tax tips for your situation.

Do you know the difference between IRS liens and levies? A federal tax lien arises when you fail to pay taxes after receiving an IRS bill or notice. It’s a legal claim against your property, including real estate and other assets, which can affect your ability to secure credit or complete financial transactions. A levy may be the next step if your debt remains unresolved. The IRS can seize assets — such as wages or bank funds — to satisfy the debt. In short, a lien protects the IRS’s interest, while a levy enforces collection. If you receive collection notices, don’t ignore them! Acting quickly can help open the door to resolution options. Call us at (702) 898-9000.