​When you own a business, you get to deduct business expenses from your business income. This general rule applies, subject to certain limitations, whether you are a sole proprietor with employees or a self-employed freelancer working in the gig economy. The Internal Revenue Service (IRS) allows you to claim tax deductions for expenses that are necessary and ordinary for your business.
While many of these tax deductions are obvious, others are more obscure. Here are five commonly overlooked tax deductions. 

1. Health Insurance Premiums
When you are self-employed, you may claim a tax deduction for health and long-term care insurance premiums. A current or former employer must not pay these insurance premiums.

You may write off Medicare Part B premiums as a business expense. You may claim a full health insurance expense deduction for yourself, your spouse and your children's premiums.1

2. Interest
You may deduct interest as a business expense as long as the expense is for your business. For instance, if you buy a building for your business, the interest on that mortgage is deductible. If you use your personal vehicle half the time as a business vehicle, you may write off half of the interest on your car loan as a business expense, as long as you choose to itemize auto expenses (not take the standard mileage deduction).

Similarly, if you charge business purchases on a credit card, you may also deduct the interest you incurred on that card. 

This business interest deduction is subject to the IRS section 163(j) limitations of a business having less than $25 million in annual gross receipts and not being a tax shelter. The limitations do not apply to excluded businesses, such as self-employed service providers and certain businesses that request exceptions, such as farms.2

3. Education Expenses
Education expenses are deductible if they directly relate to your business. You cannot get a four-year college degree and write it off as a business expense.

However, costs for seminars, workshops, and classes related to your business are generally deductible. If you buy a book or subscribe to a magazine to learn more about your industry that may be deductible too.3

4. Cell Phone Bills
If you are self-employed, once you use your cellphone for business, it may become a deductible business expense.

As a self-employed person, here is how to figure out how much of your cellphone bill is deductible. First, estimate how much of the time you use the phone for personal use versus business use. Then, multiply the business use percentage by your cellphone bill to calculate your deduction. For example, if your cell phone costs $1,200 per year and you use it 25% of the time for work, your deduction might be $300. 

If you are an employee, unreimbursed business expenses, such as personal cell phone use for business, are not deductible.4

5. Meals
You may deduct a portion of the cost of certain meals. Suppose you take your accountant out for coffee; that is deductible as long as you talk about business. Or if you have a business partnership and you go out with your business partner for dinner to discuss your marketing plan, your meal's cost is deductible.

The expenses must be reasonable, not extravagant and may be subject to limitations. If you purchase the meal from a restaurant, it is 100% deductible. If not, the cost is 50% deductible.5

Unfortunately, eating alone is not a deductible expense for the self-employed, even if you work while eating.

However, you may deduct a portion of the meal expenses when you travel, subject to limitations. The limitations are 50% of the actual cost or 50% of the IRS standard meal allowance.6
 
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking # 1-05345916.
Footnotes1 The Self-Employed Health Insurance Deduction: A Valuable Personal Deduction
https://www.nolo.com/legal-encyclopedia/the-self-employed-health-insurance-deduction-a-valuable-personal-deduction.html

2 Basic questions and answers about the limitation on the deduction for business interest expense
https://www.irs.gov/newsroom/basic-questions-and-answers-about-the-limitation-on-the-deduction-for-business-interest-expense

3 Topic No. 513 Work-Related Education Expenses
https://www.irs.gov/taxtopics/tc513

4 Can Cellphone Expenses Be Tax Deductible with a Business?
https://turbotax.intuit.com/tax-tips/small-business-taxes/can-cellphone-expenses-be-tax-deductible-with-a-business/L6NQvycMO

​5 How to Deduct Meals and Entertainment in 2022
https://bench.co/blog/tax-tips/deduct-meals-entertainment/
6 Tax Deductions for Business Travelers
https://turbotax.intuit.com/tax-tips/jobs-and-career/tax-deductions-for-business-travelers/ 

​Each year, some of the biggest companies in the world fall victim to data breaches—in 2020, this list included Microsoft, Facebook, and Instagram. But just because small businesses aren't dealing with billions of electronic records like Amazon or Google doesn't mean they aren't just as vulnerable to data breaches. And failing to safeguard sensitive data may put businesses at risk of violating state and federal data privacy laws. Learn more about the data privacy obligations a small business owner has, as well as some steps to take to keep your data secure.

Data Privacy Laws Have Been Updated
Because most companies with any internet presence may do business with clients and consumers in all 50 states, they tend to be regulated by the strictest state standards, not the most lenient. For example, businesses that do business with California residents must comply with the California Consumer Privacy Act (CCPA), one of the most comprehensive data laws in the U.S. And businesses that collect data from residents of the European Union (EU) must adhere to the EU's General Data Protection Regulation.

Neither of these laws existed before 2018. If you have not updated your business's data security protocol since then, they may be out of date. The data covered by these privacy laws is limited to personal identifiable information (PII), which may include a person's name, address, Social Security or other government identification number, and driver's license number.

What Are Businesses Responsible for Collecting and Reporting?
Each data privacy law imposes its own restrictions and requirements. Under the CCPA, companies with annual gross revenues of $25 million or more are required to inform individuals what information is being collected and allow these individuals to opt out of any sale of their personal information. Companies that don't comply with the disclosure or opt-out provisions can be assessed a fine per each person affected—which, for heavily-trafficked websites, can be tens or even hundreds of thousands of people.

Other states, including Nevada, Washington, and New York either have just enacted or are in the process of enacting their own data privacy laws. With more and more of these laws on the books, small businesses may need to take steps when it comes to protecting consumer privacy.

Where Should Businesses Begin?
Getting a crash course on privacy laws in all 50 states can seem overwhelming. However, there are resources available, including 50-state surveys, that may make it easier to see precisely which laws apply to your business.

Some other steps to consider taking to stay ahead of data privacy laws include:

• Auditing your data collection process and documenting what data you share with third parties. You may be asked to produce this information quickly if you receive a consumer request.
• Document, update, and assess your data security protocols.
• Adopt and implement a data privacy policy if you don't already have one.Create a workflow that ensures data requests are handled quickly and in compliance with applicable laws.

In some cases, it may help to bring an experienced third party (like a data consultant) on board to quickly get you up to speed on data security.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking # 1-05206790 
 
Sources:
 https://www.securitymagazine.com/articles/94076-the-top-10-data-breaches-of-2020
 https://oag.ca.gov/privacy/ccpa
 https://ec.europa.eu/info/law/law-topic/data-protection/data-protection-eu_en
https://www.natlawreview.com/article/nevada-broadens-its-privacy-law

​Many of us set resolutions every New Year’s Day. But if your resolution is too broad or doesn’t have a deadline, it is much easier to abandon or forget it. As the saying goes, “A goal without a plan is just a wish.”

This year, stick to your resolutions using the SMART goal structure. This method will help you clarify your wishes by turning your goal into actionable items, providing you with an outline for success.

Specific
Make sure your goal is simple and well defined. Setting more focused mini-goals will help you take small steps toward your overall goal.

​SET YOUR GOAL: My mini-goal is to incorporate short sprints into every run.
CHECK YOURSELF: How will this help me run a faster 5k time?

Measurable
Make sure that your goal contains criteria for measuring progress toward the attainment of the goal.

SET YOUR GOAL: To reach my goal, I will run for 30 minutes, 4 times a week.
CHECK YOURSELF: How will I measure whether I am on track to meet my goal? (List at least two indicators.)

Achievable
The goal should challenge you but be obtainable in a manageable time frame.

SET YOUR GOAL: I will achieve my goal by following a speed training running plan.
CHECK YOURSELF: Is it within my reach? Do I have the resources I need to accomplish this mini-goal?

Relevant
Make sure the goal you’ve chosen matters to you.

SET YOUR GOAL: I am doing this in order to improve my overall health and feel proud of my 5k time.
ASK YOURSELF: What is the reason, purpose, or benefit of accomplishing the goal? Is now the right time for you to work toward this goal?

Time-based
Make sure to be specific when setting a target date.

SET YOUR GOAL: In 60 days, I will be able to beat my previous 5k time.
ASK YOURSELF: Is this enough time to reach my goal? Did I give myself too much time for this goal?
 
This article was prepared by ReminderMedia.
LPL Tracking #1-05210050

Every year, the College Board releases new college cost data and trends in its annual report. The figures published are average cost figures based on a survey of approximately 4,000 colleges across the country.

Over the past 20 years, the average price for tuition, fees, and room and board has increased 46% at public colleges and 30% at private colleges over and above increases in the Consumer Price Index, straining the budget of many families and leading to widespread student debt.

Here are cost highlights for the 2022-2023 year.1This year, public colleges have done a better job than private colleges at keeping tuition and fee increases under 2.3%. Note: "Total cost of attendance" includes direct billed costs for tuition, fees, and room and board, plus indirect costs for books, transportation, and personal expenses.

Public colleges: in-state students

• Tuition and fees increased 1.8% to $10,940
• Room and board increased 3.0% to $12,310
• Average total cost of attendance: $27,940

Public colleges: out-of-state students

• Tuition and fees increased 2.2% to $28,240
• Room and board increased 3.0% to $12,310 (same as in-state)
• Average total cost of attendance: $45,240

Private colleges

• Tuition and fees increased 3.5% to $39,400
• Room and board increased 3.0% to $14,030
• Average total cost of attendance: $57,570

Note: Many private colleges are at or approaching $80,000 per year in total costs.

Sticker price vs. net price
The College Board's cost figures are based on published college sticker prices. But many families don't pay the full sticker price. A net price calculator, available on every college website, can help families see beyond a college's sticker price. It can be a very useful tool for students who are currently researching and/or applying to colleges.

A net price calculator provides an estimate of how much grant aid a student might be eligible for at a particular college based on the student's financial information and academic record, giving families an estimate of what their out-of-pocket cost — or net price — will be. The results aren't a guarantee of grant aid, but they are meant to give as accurate a picture as possible.

FASFA for 2023-2024 year opened on October 1

​Even though the college cost data contained here is for the 2022-2023 school year, it's already time to think about the following year. The Free Application for Federal Student Aid (FAFSA) for the 2023-2024 year opened on October 1.

It's important to keep in mind that the 2023-2024 FAFSA will factor in your income information from two years prior, which it will get from your 2021 federal income tax return, but it uses current asset information.2 Your income is the biggest factor in determining financial aid eligibility.
1) College Board, Trends in College Pricing and Student Aid 2022
2) U.S. Department of Education, 2022
 
This article was prepared by Broadridge.
LPL Tracking #1-05349506

​If one of your New Year's resolutions involves enhancing and expanding your investment portfolio, look no further. In a true New Year's Eve countdown tradition, ask yourself these 10 questions to help review your investment plans.
10. What's My Investment Timeline?Not every investment is appropriate for every timeframe. Someone who hopes to retire in the next few years might seek very different investments compared to someone who is just starting in the workforce. Someone investing funds in a young child's college account may want a different asset mix than someone establishing a family trust to benefit their children and grandchildren. Consider your goals and timeline before selecting individual investments for each account type, such as a 401(k), individual retirement account (IRA), 529, or taxable funds.
9. What Are My Financial Weaknesses or Blind Spots?Another key part of investing success may involve recognizing—and controlling—your weaknesses and blind spots. If you know you tend to panic-sell when stocks go down, you may want to invest in accounts that restrict frequent trading or require a waiting period before transaction executions. Those who struggle with paperwork may wish to streamline their investment portfolio by having fewer accounts. 
8. What Do I Want To Do With My Investments?This strategy is another way of assessing investment goals. Knowing what you would like to achieve—whether a comfortable retirement, a new car, or a paid-for college education for your children—may allow you to work backward from that point and set relevant goals.
7. What Is My Risk Tolerance?If you have an unlimited risk tolerance, you might not need to invest—instead, you might foolishly bet it all on the lottery. However, those not comfortable with that level of risk have available investment options ranging from the more stable to the ultra-risky. Finding an investment mix for your risk tolerance may go a long way toward easing frazzled nerves when the market takes a dip.
6. Am I Diversified Enough? Another key part of risk tolerance involves diversification. Putting all your money into a single stock or sector, from crypto to energy to tech, may leave you vulnerable to volatility. Make sure that your assets are spread among various investments to avoid major swings in value potentially.
5. When Do I Sell This Investment and Why?When you analyze specific investments and their role in your portfolio, it might be a good idea to consider what would cause you to sell the asset, such as a rise or drop in price. Perhaps a change in the company's structure? Whatever your reasons, articulating them may help you stick to your plan.
4. What if My Investment Becomes Worthless?Many stocks that made up the S&P 500 and Dow Jones index at inception no longer exist. Diversification might help prevent one bad investment from wiping out your entire portfolio. Still, it may be a good idea to consider what would happen and how you would respond if the value of your investment dropped to zero. 
3. Why Do I Still Own This Investment?Periodically, you should review your portfolio to make sure everything you invested in is something you still want to own. If you are holding onto a loser and do not have any reasons to support continuing to own the stock, it may be time to sell.
2. Do I Know What I'm Investing In?One question is whether you invest in something you know about or simply invest in what the media tell you. If you have specific knowledge of a particular industry, you may know better than others about whether an investment is good. 
1. Should I Manage My Investments?A typical investor might be unable to beat the management results of some full-time financial professionals. Unless you have the time, knowledge, inclination, and emotional fortitude to manage your investments, it may be worth considering leaving investment management to a financial professional.
 
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
 
S&P 500 Index: The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.
Dow Jones Industrial Average (DJIA): A price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.
This article was prepared by WriterAccess.
LPL Tracking #1-05337702.

The fourth quarter holidays are often seen as one of the prime times to take out your checkbook — not only do many charities put in extra efforts helping others this time of year, but donating is also a smart financial move. Giving to a charity before the end of the year can help reduce your tax burden when April 15 rolls around.
Here are five crucial do’s and don'ts when it comes to charitable giving.
DO: Make Sure the Organization Has Clear GoalsWhen you give to a charity, you want to know that the funds are going to good use. This can require research to identify which charities make the best use of donated funds. Nonprofit and government organizations are required to create certain financial reports so potential donors can see what percentage of each donation directly benefits those in need. Plus, doing a deep dive into the operations of a charity you’re considering supporting can help avoid falling for a scam.
DON'T: Feel You Need to Give to Every Charity
There are tens of thousands of potential charities: how do you choose? Whether you prioritize charitable giving to organizations that serve a mission close to your heart, are part of your community, or fulfill some other objective that interests you, it's important to plan your giving so that you're not stretched thin.
DON'T: Assume Giving Time is Preferred Over Money
You may be tempted to donate your time or volunteer with a charity in lieu of donating cash. But ultimately, most charities will tell you that money does go farther than donor hours. Coordinating a team of volunteers may require additional time and effort, while paying for professionals can be far more efficient.
DO: Keep an Eye Out for Fake Websites
Charity scammers are out in full force during the holidays, mimicking nonprofit websites to try and skim donations from unsuspecting victims. To avoid charity scammers, follow these tips:

1. Avoid clicking a link to visit a charitable website via a donation button or from a link emailed or texted to you. Instead, navigate directly to the website from a search engine or your address bar. Just clicking on the link could redirect you to a dangerous site.
2. Don't donate until you find evidence that a charity exists and is legitimate. If a charity can’t be found via a Google search or doesn't have a legitimate website, it may be false.

1. Before you send a donation by mail, verify the mailing address from the charity’s site.

DON'T: Forget About Charitable Donations After the Holidays
​Many charitable organizations are inundated with donations and volunteers over the holidays, only to see many of these resources dry up once New Year's Day arrives. If you want to really make a difference all year long, consider scheduling monthly or quarterly donations to provide continuous support for your favorite causes. In addition to giving, you can also check into volunteer opportunities, another way to remain involved with charities closest to your heart.
 
Important Disclosures:
 
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
 
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
 
This article was prepared by WriterAccess.
 
LPL Tracking # 1-05337697.

For many of us, a new year is an opportunity for fresh starts and discovering the best versions of ourselves, but some things—like tax contributions and retirement deadlines—don't change much, if at all. And with that shiny new year right around the corner, meeting end of year deadlines and getting tax efficiencies in place now may prepare us for a smoother transition. Read on for several things you'll want to accomplish before 2022 draws to a close.
Establish or Contribute to a Keogh Plan or Solo 401(k)In 2022, a Keogh plan, or a tax-deferred pension plan that's available to unincorporated businesses or the self-employed, allows contributions of up to $61,000 per year—far more than the $20,500 that can be contributed to a traditional 401(k).1 But to take advantage of these tax savings in 2023, the taxpayer must establish (and contribute to) a Keogh plan by December 31, 2022.
Take Required Minimum Distributions (RMDs) Anyone with an IRA, 401(k), 403(b), 457, Simple IRA, or SEP IRA must begin withdrawing from these accounts at some point. These withdrawals, which are computed using the applicant's age, life expectancy, and the total balance of the account, are known as RMDs, and are subject to income tax. 
The SECURE Act boosted the RMD age from 70.5 to 72. But because the penalty for failing to take an RMD (or for taking a distribution that's too small) can be a 50 percent excise tax, missing this deadline can be an expensive mistake.2 
Pay Expenses for Itemized DeductionsIf you're likely to deduct more than the $25,900 standard deduction (for married couples in 2022) or $12,950 (for single filers in 2022), itemizing your deductions can make sense.3 But in order to itemize, you'll need to actually spend this money in 2022. Some of the expenses that can be itemized include home mortgage interest, property, state, and local income taxes, medical expenses, charitable contributions, and investment interest expenses.
Make Tax-Deductible Charitable Contributions and Annual Tax-Free GiftGenerally, taxpayers can deduct charitable contributions so long as these contributions are made in cash and don't exceed 60 percent of the taxpayer's adjusted gross income (AGI). However, certain "qualified" contributions can be deducted up to 100 percent of the taxpayer's AGI.4 Like other 2022 tax deductions and credits, these contributions must be made during the 2022 calendar year in order to be deductible.
Sell Stock The end of the year can be a good time to take stock of your holdings and rebalance them if necessary. You may find that the rise in certain sectors (like tech) and decline in others (like energy) has skewed your asset allocation; selling certain over performing holdings and reinvesting these proceeds according to your desired asset allocation can help bring your portfolio back into line. Before selling stock (and potentially incurring capital gains in the process), you may want to sketch out a rough draft of your federal income tax return to see whether your proposed stock sale will be enough to potentially move you into a higher tax bracket. 
 
Sources
1 https://www.investopedia.com/terms/k/keoghplan.asp
2 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
3 https://www.investopedia.com/terms/s/standarddeduction.asp
4 https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions
5https://www.irs.gov/newsroom/irs-seniors-retirees-not-required-to-take-distributions-from-retirement-accounts-this-year-under-new-law
 
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.
Asset allocation does not ensure a profit or protect against a loss.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.LPL Tracking #1-05327548

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