Folks think there isn’t much to talk about this year when they talk about taxes due to the fact there is no major legislation on the horizon. Well, we think there is plenty of opportunity ahead in 2019 to make money, manage money, and save money. Here’s what we’re excited about!
Technology is not going to turn your accountant into a robot. We are more than just CPAs, we are business and financial advisors. Whether you are an entrepreneur, an individual investor, or a closely held business, these are the trends we think you should be keeping an eye on:
1. Qualified Opportunity Zones and Opportunity Funds: A unique opportunity to defer capital gains. Real Estate developers can establish a fund to generate third-party investment capital for their projects and use their fund to defer tax on the sale of capital assets. By investing the gain in a Qualified Opportunity Fund they will pay less in taxes. Passive investors benefit from deferral of tax payments on recognized gains for up to 8 years (the latest date being December 31, 2026) with up to a 15% gain reduction and the possibility of avoiding any income tax on the Qualified Opportunity Zone investment if held for at least 10 years. See our prior article here: Are You Taking Advantage of the Investment Opportunity Act?
2. Business Exit Planning: Studies show that almost 80% of successful business owners hope to exit their companies within the next 10 years, but will they exit in style? Business owners need an Exit Plan, a written road map created with their retirement goals in mind. A CEPA or Exit Planning Advisor outlines the best practices and proven techniques for exit planning and ensures that the Exit Plan complements the individual’s estate plan for the financial security of the entire family. Exit Planning is an investment in your future – over time it will increase the value of your business and result in tax savings. The objective is to maintain control of the exit process to reduce risk, get maximum value for your life’s work, yet minimize the tax dollars paid to Uncle Sam. Find out more here: Exit Planning Services
3. Fraud Prevention: Technology may be making it easier for thieves to steal your identity or commit credit card or payroll fraud, but there is still plenty you can do to prevent it and the solutions are often low tech! Internal controls, periodic audits, encryption, password protection and segregation of duties are a start, but have you considered smart phone anti-theft and card control apps, risk analytics or multi factor authentication? What’s in your on-line wallet? Geolocation technology services work by matching the location of the phone and the card being used for fraud alerts. Artificial Intelligence can now deliver a complete digital footprint of users at sign-up, check-out or log-in to help mitigate fraud. Is there a thief in your company? Here’s what to look for: Is There a Thief Hiding in Your Company
4. Risk Mitigation and Asset Protection: These two items are more important than ever in today’s financial environment whether you are a self-employed, high net worth individual, serial entrepreneur, owner in a closely held family business or large corporation. Big Data has changed the insurance industry forever, and the liability landscape now includes digital and intangible assets unheard of years ago! No one would argue new technology is set to be disruptive in many ways to well-established lines of liability – perhaps 2019 is the time to take a look a your insurance protection? The first step would be a policy audit and review to identify exposure, correct omissions, examine structure and suitability, and reduce premiums. The second step would be to get educated about new products and their advantages. Learn more here: Life Insurance Policy Audit and Review
WHAT’S IN YOUR FINANCIAL TOOLBOX FOR 2019?
These are only some of the innovative financial services that make up our New Financial Dialogue. Contact Lou Fuoco, CPA, CEPA, for a complimentary consultation at 561-209-1101, or email LFuoco@fuoco.com.
