keith-towns-blog

[keith-towns-blog]

Multiple Strategies toward Easing Tax Burdens as an Entrepreneur

A respected financial accountant in the San Francisco Bay Area, Keith Towns guides Emerge Financial Group. Keith Towns maintains a core mission of meeting the needs of success-focused individuals and businesses through accounting and tax services that help overcome obstacles and preserve wealth. One easy-to-remember strategy for entrepreneurs, DEAPR was recently featured in an Inc. article. The acronym stands for Defer; Eliminate; Arbitrage; Pay now, none later; and Reduce. The framework provides multiple pathways toward reduced taxes. Deferring can involve gifting an appreciated stock rather than providing cash gifts. For example, rather than providing a $10,000 cash gift to parents who earn less than $78,750 a year in adjusted income, give them a stock of the same value. You can avoid paying for the appreciation of that stock and, at the same time, provide a stock asset on which your parents owe no taxes. The arbitrage strategy centers on re-characterizing assets and income in ways that reduce taxes. For example, an asset held for a year or less and sold at a gain is taxed at the ordinary income tax, which can be as high as 37 percent. If that same appreciated asset is held longer than a year, it is taxed at a capital gains rate that maxes out at 20 percent. The “Pay now, none later” strategy centers on choosing vehicles such as life insurance and Roth IRAs that involve up-front tax payment contributions and tax-free distribution on the appreciated amount. For those of higher wealth, Private Placement Life Insurance may present an ideal tactic. Finally, reducing taxes includes pathways such as setting up Health Savings Accounts, taking home office deductions, and employing savings and investment vehicles such as Donor Advised Funds.

[keith-towns-blog]

Two Oakland Area Relief Agencies Unite to Serve Low-Income Persons

Founded in 1998 by accountant Keith Towns, Emerge Financial Group serves clients with many financial services. Keith Towns’ company supports several Oakland regional relief agencies, such as the East Bay Community Resource Project (EBCRP). The EBCRP was founded in 1989 by two women, Joan Zweben, PhD, and Marta Rose, LMFT, who strove to make drug abuse treatment affordable for all Alameda County residents. Since then, its mission has expanded to services such as counseling, fighting homelessness, re-entry into society for persons in jail, and outreach to those with HIV and hepatitis. These programs are offered to men, women, and to people who do not identify with either gender. Presently, the EBRCP serves some 25,000 low-income individuals and families in four locations. Recently, the EBCRP merged with LifeLong Medical Care, a non-profit agency that receives federal funding for Marin, Alameda, and Contra Costa counties. LifeLong operates 16 facilities for purposes such as urgent care, dental care, housing support, and care for elementary students. To learn more, go to www.ebcrp.org or www.lifelongmedical.org.

[keith-towns-blog]

Tax Exclusions Associated With Profits on Home Sales

Leading Emerge Financial Group, Keith Towns is a respected presence in the Northern California accounting community who maintains offices in Oakland and Suisun City. Offering experienced individual and small-business consulting, Keith Towns has extensive knowledge of the tax aspects of home ownership. One major question people have is whether they must pay taxes on the profits they achieved through selling their home. This depends both on the price achieved and the length of time the home has been owned. In cases where the residence was owned and lived in by the seller for at least two years of the last five, then $250,000 of the profit is considered tax-free. For those who are married or filing jointly, this figure doubles to $500,000. Keep in mind that, in cases of sale for a loss, these deductions cannot be taken. There are several qualification technicalities that should also be considered, including whether the home served as a principal residence. Keep in mind that gains on the sale of other homes within a two-year period prior to the sale count toward the total tax exclusion. As there are many other details that can impact the tax break amount and eligibility, it makes sense to consult with an experienced tax professional on the subject.

[keith-towns-blog]

Las Vegas to Host Upcoming 2019 NABA Convention

The president and owner of Emerge Financial Group in San Francisco, Keith Towns provides individuals and businesses with financial solutions in areas ranging from accounting to taxes. Professionally, Keith Towns belongs to organizations such as the National Association of Black Accountants, Inc., (NABA). Created in 1969 to empower the African-American community to achieve greater opportunities in the field of finance and accounting, NABA has seen substantial increases in the numbers of African American CPAs in the last few decades. Today, the organization continues to support its members through a diverse range of professional development and educational offerings. The 2019 NABA Convention will provide just such opportunities, as well as those for community service and networking. The gathering will take place June 19-23, 2019, at The Cosmopolitan in Las Vegas. This year's convention will focus on the topic of insight. It will include sessions of the Management Leadership Development Institute (MLDI), Executive Leaders Development Institute (ELDI), and the Advancing Leaders Development Institute (ALDI). Other features of the convention range from the NABA Career Expo to the Awards Experience & Soiree, which will be held on the evening of Friday, June 22. The following day, attendees can participate in the NABA Day of Service.

[keith-towns-blog]

Setting in Place Safe Cash Sources For Retirement

A respected Northern California executive, Keith Towns leads Emerge Financial Group offices in Suisun City and Oakland. One aspect of portfolio planning Keith Towns emphasizes is setting in place reliable, ready cash sources, so that when surprises occur during retirement they don’t impact core savings. Unexpected circumstances include major market downturns, as well as personal expenses related to health, home and auto repairs, and the needs of children and other family members. A common thread is a need for amounts of money that extend beyond one's savings or easily cash transferable assets. Ways of planning for such exigencies includes setting in place a source of guaranteed lifetime income, such as a pension or annuities. These make sure fixed, basic expenses are met, whatever other life circumstances occur. Not focused on growing money, this income provides a safety blanket ensurimg peace of mind throughout retirement. In addition, those approaching retirement often want to reallocate money into safe investments such as money market funds, treasury bills, and certificates of deposit, which are not linked to markets. This means equities that are likely to bounce back in the long term don’t need to be offloaded for quick sale, at a significant loss.

[keith-towns-blog]

Roth IRA and 529 Plan Gifts for the Younger Generation

The principal of Emerge Financial Group, Keith Towns leads the customer-centered practice’s offices in Oakland and Suisun City, California. With clients that include athletes and successful business professionals, Keith Towns provides coordinated solutions for finances, accounting, and taxes. One tax-advantaged pathway highlighted on the Emerge website (emergefinancial.com) is the use of financial gifts to help members of the younger generation. For young people who are are already working part-time or full-time, one sensible gift is a contribution to the person’s Roth IRA. The custodial Roth IRA is capped at $5,500 for the year 2018. The IRA offers the unique flexibility of tax-free and penalty-free use of contributions at any time. Another popular giving pathway is the 529 plan, which offers tax-free funds for higher education expenses. In many cases, this gift also generates deductions in state income taxes.

[keith-towns-blog]

Yesterday was a pretty fantastic day for Philadelphia and we couldn’t be happier that we got to be a part of it. Congratulations to the Philadelphia Eagles, our Super Bowl Champs! Fly, Eagles Fly.