Planning Your Monthly Budget With Inflation

Do you have a monthly budget for your family that you stick to each month?

If you’ve been doing it for quite some time, you may have noticed the increase in the price of food, gas, cars, and other necessities you need — this increase in cost is known as inflation.

What exactly is inflation and how does inflation affect my monthly budget?

Inflation is when the cost of goods or services goes up. While inflation can affect any purchases you make, it is most noticeable on items you purchase regularly. Ultimately, inflation means that the dollar doesn’t go as far as it once did, costing you more for the same amount in the long run.

Although minor inflation may not seem like a drastic change, inflation can make it challenging to meet your financial obligations, such as your monthly budget.

Follow along as AA Tax & Accounting Services walks you through a few steps you can take to deal with inflation in your monthly budget without relying on your credit cards and accumulating unnecessary debt.

Stick to a monthly budget

One of the most effective ways to beat inflation is to create a monthly budget and stick to it. By monitoring where your money is going and what it is being spent on, you’ll be sure to only spend the money you have in the bank (preventing a buildup of debt on your credit cards).

However, one of the biggest problems with monthly budgets is that people underestimate how much they will need for specific goals, causing them to go over budget each month.

Set realistic goals for groceries, dining out, gas, and other necessities to ensure your purchases align with your family’s needs. At the beginning of the month, allocate your money to each goal and stick to these spending limits to help beat inflation costs.

Because inflation is continually on the rise, use your budget to determine where you can curb your spending habits. If you decide you need to increase your grocery budget, you’ll need to pull that extra from another category or change your shopping habits.

Find ways to cut spending

Setting and sticking to a budget is one of the most effective ways to beat inflation — but you may also be looking for ways to increase the money being dispersed throughout the budget. If there isn’t a way to increase your monthly income streams, it may be time to get creative and determine where you can cut back or change your habits.

Easy changes include opting for store brands over name brands or utilizing coupons or discounts to determine your weekly groceries. By allowing your money to stretch a bit farther each month, you’ll be able to allocate those funds elsewhere in your budget.

Evaluate your monthly expenses

Another way to save some additional money in your budget each month is to evaluate all of your expenses.

Are you paying for anything that isn’t completely necessary?

Do you have monthly subscriptions to Netflix, Hulu, HBO, Spotify, or other subscription services?

Do you grab a specialty coffee on the way to work every day?

Are you letting groceries go to waste and eating out multiple times a week?

Spotting areas in your budget to cut back and eliminating those expenses will allow your money to go a lot further.

Don’t forget about savings

If you’re struggling to stay within your monthly budget due to inflation, you may find yourself cutting into your savings or skipping adding money each month. By utilizing tactics to lower your monthly expenses, you will still save money without accumulating debt.

Along with saving money, it’s important to continue saving towards your retirement goals. With the inflation you see today, you’ll also need to consider how inflation will affect your retirement goals. Make sure you’re considering your retirement portfolio as the rate of inflation increases over time.

If the thought of inflation is stressing you out, the AA Tax & Accounting Services team can help you execute the right tax strategies to maximize your nest egg for retirement. Contact us to schedule an appointment.

What Utahns Need To Know About How Cryptocurrency Is Taxed

In recent years, you may have heard the term cryptocurrency being thrown around in everyday conversation. You may even dabble in cryptocurrencies yourself. While this new decentralized, digital store of value and medium of exchange is all the rage, it also leaves many individuals wondering what to do come tax season.

Whether you have Bitcoin of your own, or you have another form of cryptocurrencies such as Litecoin, Ripple, or Dogecoin, you must understand how it is taxed, so you don’t have the Internal Revenue Service knocking at your door for owed taxes. Cryptocurrencies that are bought, sold, or mined are all taxable, which means you need to report this income on your tax return.

To ensure you understand all tax obligations for cryptocurrency, the team at AA Tax & Accounting Services has put together a quick guide so you can confidently file your tax return by the new deadline of May 17.

When to pay taxes on cryptocurrency

When determining if you need to pay taxes on any cryptocurrency, you need to take stock of any taxable events you’ve encountered over the past year. These taxable events typically occur upon the sale or trade of crypto — meaning that you won’t owe taxes simply for buying or holding onto cryptocurrency, but only if a sale or transaction takes place.

You may be liable for cryptocurrency taxes if you made any of the following transaction during the previous tax year:

  • Traded crypto to fiat currency
  • Traded cryptocurrency to virtual currency
  • Received cryptocurrency as the result of a fork
  • Received crypto as compensation for goods or services

With any of these transactions, you need to consider capital gains and capital losses on your crypto. If any of these transactions resulted in a profit gain, that income is taxable and needs to be reported. However, if you incurred a loss from the transaction, you can write off the loss when filing this year’s tax return.

Although you may have received cryptocurrency as a gift, this crypto exchange will not incur taxes unless it is higher than the gift exemption amount. To ensure you avoid dealing with tax penalties, it’s important that you accurately calculate any gains and losses on any crypto transactions that have taken place. Without accurate record-keeping, you’re putting yourself at risk of an IRS penalty.

How much do I owe on my cryptocurrency?

Every person’s taxes are different, which is why there isn’t a solid answer we can give you regarding how much you will owe after using cryptocurrency. The primary consideration for how much you will owe depends on how long you have held onto your cryptocurrency and whether you earned a profit or experienced a loss.

Your tax rate is determined by how long you’ve had your cryptocurrency. For instance, if you have had Dogecoin for more than one year, you will be required to pay a long-term capital gains tax rate on any profits you make from a sale. But if you’ve had your Dogecoin for only a few months, your profits will be taxed at your standard income tax rate.

Any profits you earn from the sale of cryptocurrency are taxable income and must be reported to the IRS. However, not all sales result in profits. If you experience any losses related to your cryptocurrency, you have the option to reduce your taxable income by a maximum of $3,000, and those losses can be carried over to future years.

Tax consulting services in Cedar City, Utah

Determining exactly how much you owe on your crypto transactions can be overwhelming. If you aren’t sure where to start, AA Tax & Accounting Services’ tax consultants can walk you through the process with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right cryptocurrency tax strategies to save you money. Contact us to schedule an appointment.

What First Time Investors Should Know About Tax Time

You have your entire future laid out in front of you, and with proper planning for retirement, you’ll be able to settle down without worrying about finances. Investing in your future early on is a great way to set yourself up for success — but it’s never too late to start. If you’re a new investor heading into your first tax season, you might be wondering what you need to know about your taxes and investments.

We know that tax season can be daunting, and with multiple investments, it can seem even scarier — it doesn’t have to be that way! The team at AA Tax & Accounting Services is here to help you navigate the tax process so you can feel confident in your investments. Here are our top tips for first-time investors for tax time.

Understand Realized Gains

If you’re new to investing, you might not fully comprehend how investments are taxed. Something you need to consider is the realized gains on your investment. If you purchase a stock that sees an increase in value, you won’t be expected to pay taxes on those gains every tax season. You will only be expected to pay taxes when you “realize” the gain when you sell your stock shares.

For example, if you purchase 50 shares of a stock for a cost of $50 but the stock value increases to $75, you won’t be required to pay taxes on the $25 gain until you choose to sell your shares. With any investment, you can expect to see values rise and fall over time. If your stock share goes down in value, it will be a similar situation to realized gains where you won’t face any tax implications until your shares are sold.

Long Term & Short Term Gains

Now that you’re on your way to becoming an investing pro, you must understand the difference between short-term capital gains and long-term capital gains before heading into tax season.

Your investments’ tax implications will vary depending on how long you have held onto that particular stock. This means that your gains will be taxed at the short-term capital gains rate if you sell your shares after only holding them for a year or less. If you have held onto the stock for more than a year, your gains will be tased at the long term capital gains rates. Knowing how long you have held each of your investments can help you determine if selling or holding onto your shares a little longer is the best choice financially.

The tax rate for short-term capital gains is determined by your specific income tax bracket, while long term capital gains tax rates are typically lower than your income rate and not specific to an income bracket.

Offset Income with Capital Losses

If a few of your investments didn’t pay off this year and you have more losses than gains, you can apply up to $3,000 of your investment losses and apply that against your income. Although experiencing a loss on the investment isn’t the goal, applying the loss against your income allows you to reduce your annual income and potentially offset having a higher-taxed income. If your losses are more than $3,000, you can apply that loss to a future tax season as well.

Tax Consulting Services in Cedar City, Utah

As a first time investor, it can be difficult to understand the tax implications of your investments. If you’d like to feel confident in executing the right tax strategies to save you the most money, we recommend consulting certified public accountants like AA Tax & Accounting Services when preparing this year’s tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has unparalleled experience dealing with taxes on investments and can provide effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.

Your Stimulus Check Tax Questions Answered

The COVID-19 pandemic has impacted the lives of many — from getting sick yourself or knowing someone with a positive test result to losing a job or business to being stuck inside working remotely. There have been a lot of obstacles to overcome. Because of the impact on the economy, many United States citizens received stimulus checks from the government.

While everyone likes waking up to a surprise deposit in their bank account, it might leave you with a lot of questions.

What are the qualifying factors to receive the money?

Will you need to pay taxes on the stimulus check?

There’s no reason to stress about your stimulus check as you head into tax season. To help you better understand who receives stimulus checks, how you’ll receive the payment, and if the payment will be taxed, AA Tax & Accounting Services, LLC has put together a quick guide to answer some of the most common questions about the stimulus checks.

Who Qualifies for a Stimulus Check?

Individuals will receive a stimulus check if they:

  • Have a social security number – Those with a social security number are eligible to receive the stimulus payment, as well as an additional payment for any children in the household with a social security number.
  • Are not claimed as a dependent – If claimed as a dependent, the individual will not be eligible to receive the stimulus check. The person claiming them would receive it.
  • Earned within the qualifying bracket – Individuals filing taxes solo and earned less than $87,000 are eligible to receive the payment. For joint filers, they must earn less than $174,000 jointly to receive the stimulus check. Those earning more than the specified amount will receive a reduced payment.

These are only a few of the qualifications to receive a stimulus check, but the most common ones to be aware of.

How Will You Recieve Your Stimulus Check?

If you continue to be eligible for upcoming stimulus checks, you’ll continue to receive them the same way you have previously. The three ways for you to receive a stimulus check are through a direct deposit (which will automatically be set up if you received your 2019 tax return via direct deposit), a paper check that you will receive by mail, or by a debit card.

If you did not receive any of the stimulus checks that went out in 2020 or early 2021 but were eligible for the payment, it’s not too late to receive it. When filing your tax return this year, you can claim the tax credit.

Will I Need to Pay Taxes on My Stimulus Check?

If you are eligible to receive a stimulus check, you will not be required to pay taxes on the payment when you file your tax return this year — this goes for stimulus checks received in both 2020 and 2021. In addition, your stimulus payment will not be counted as income used to determine your eligibility for government assistance.

Tax Consulting Services in Cedar City, Utah

Do you still have questions regarding stimulus checks?

If so, AA Tax & Accounting Services can help you better understand the stimulus check process and how it impacts your tax returns. No one should go into tax season with their questions unanswered. Our team of tax consultants has the experience navigating the most effective strategies for maximizing their deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money. Contact us to schedule an appointment.

Business Tax Strategies

Business Tax Strategies

Business Tax Strategies

When the financial year comes to a close, it’s important to take into account all the deductions and credits that can help you save money on your taxes. But navigating all of these cost-saving tax strategies can be a stressful process if you don’t know where to begin.

The team at AA Tax & Accounting Services has put together a list of strategies that can help you maximize your credits and deductions.

Take Advantage of the Health Care Tax Credit

If you pay for at least half of your employees’ health insurance premiums, have fewer than 25 full-time employees, and your employees earn an average annual salary of $50,000, then you might be eligible for the health care tax credit. This can save you money on your taxes but is helpful to navigate with the help of a certified public accountant.

Consider Charitable Contribution Deductions

If your business has made any charitable contributions, you will want to deduct these when filing your taxes. A charitable contribution can be anything from donating money, goods, or services to an organization. When these offerings are donated, you can deduct the market value of the contribution when filing your tax return.

Account for Property Deductions

If your business has recently changed locations or acquired a new property, you can take advantage of property deductions. When this happens, you can deduct up to $500,000 of eligible business property. But keep in mind, that you can only use this deduction in the year that you first obtain the property.

Utilize the Work Opportunity Credit

When your business hires employees that are veterans, disabled, or part of another disenfranchised group, you are eligible for the work opportunity tax credit. This can be very beneficial when it comes to filing your tax report because you can receive up to 40% of the first $6,000 paid to a new employee from a disenfranchised group. However, it’s important to note that the size of this credit can vary in different situations.

Offer Child Care Expenses

Do you provide child care expenses for your employees? If so, you are eligible to receive a tax credit! If you pay for child care expenses, the credit will cover 25% of your paid expenses up to $150,000 annually.

Fund an Employee Retirement Plan

If you don’t have a retirement plan set up for your employees, it can be a great opportunity for you to save money on taxes. Set up and fund a qualified plan that is recognized by the Internal Revenue Service and you’ll be able to start taking advantage of the tax savings. There isn’t a one size fits all retirement plan for every company. Our team of professionals can help walk you through the different contribution plans and determine which is best for your business and your goals.

Account for the Cost of Gifts

If you’ve purchased any gifts for customers or vendors over the past year, you have the opportunity to deduct up to $25 per person off the cost of gifts. However, you aren’t able to claim this deduction if the gifts were provided to anyone bearing the same name as your business.

Tax Consulting Services in Cedar City, Utah

We recommend consulting certified public accountants like AA Tax & Accounting Services when making any decisions or changes to your business tax return. We have the experience to guide businesses on the best strategies for maximizing their deductions and tax credits with our accountant services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.

Gift Laws and Tax Implications in Utah

Gift Laws and Tax Implications in Utah

Gift Laws and Tax Implications in Utah

Everyone loves gifts, but did you know that if you gift a large sum of money you might need to pay a federal gift tax? Before gifting money, you must understand the federal tax laws to ensure you’re following all gift tax guidelines set by the Internal Revenue Service (IRS).

AA Tax & Accounting Services has compiled a guide to help you navigate gift tax for Utah residents — keep reading to learn more.

What Is Gift Tax?

The gift tax is a federal tax that is applied to money or property that is gifted to another person for nothing in return. It also applies to transfers where the gift giver receives less than the full value in return.

You may be wondering why you’ve never heard of this or paid a gift tax — it doesn’t apply to all gifts. If your gift or inheritance meets the set criteria, the IRS can collect a tax if you’ve already exceeded the annual or lifetime gift exemptions. So what are these exemptions? Let’s find out.

When Is a Gift Tax Applied?

As of 2020, the annual exclusion is set to a gift of at least $15,000 in a single calendar year — this number increases to $30,000 if a couple is gifting money from joint accounts or assets. Additionally, there is a cap on the amount a person can be gifted within their lifetime. This lifetime exclusion was raised to $11.58 million in 2020.

If your gifts are valued at or above these thresholds, you will need to report it to the IRS. Any gift of money or assets under these amounts are excluded from gift taxes.

Gift Tax for Utah Homeowners

If you live in Utah, there is no inheritance tax. But that doesn’t mean you’re always off the hook when it comes to paying taxes. If you are gifted something in an inheritance from a person who lives in a state other than Utah, there might be an inheritance tax applied to out-of-state inheritors. This varies from state to state, so you must take the time to understand inheritance laws if you inherit money or assets above the specified threshold from someone who lives outside of Utah.

Similarly, Utah also doesn’t have a gift tax. You will follow the same federal exclusions of $15,000 per individual — if you receive a gift at or above this amount you will need to report it to the IRS. While you won’t pay tax on the specified amount, the gift will reduce your lifetime exemption of $11.18 million.

Tax Consulting Services in Cedar City, Utah

There’s no reason to stress out about receiving a gift or inheritance. If you have questions about reporting a gift over $15,000 to the Internal Revenue Service, AA Tax & Accounting Services can help you navigate the process and walk you through everything you need to know.

The AA Tax & Accounting Services team is committed to helping you feel confident come tax season. Contact us to schedule an appointment.

Personal & Business Tax Changes To Expect If Joe Biden Takes Office

Personal and Business Tax Changes To Expect If Joe Biden Takes Office

With November 3rd on the horizon, the deadline to cast your vote in the presidential election is nearly here. Democratic presidential nominee, Joe Biden, has shared his tax policy proposals that will impact both business owners and individuals. As a way to raise federal revenue by $3.2 billion, Biden focuses on getting more taxes from both the wealthy and big corporations.

AA Tax & Accounting is here to inform you of some of the biggest proposed tax changes, not to sway you on your presidential vote. Let’s take a deeper look at how Biden’s plans will impact individual taxes and business taxes so you can have a well-rounded picture when casting your ballot on election day.

Individual Tax Changes

Although everyone will likely see some tax changes in 2021 based on Biden’s proposed tax plan, the most impacted will be wealthier Americans.

Taxes Remain Steady for Incomes Below $400,000
Under Biden’s proposed tax plan, households with an annual income under $400,000 shouldn’t see the amount they pay in taxes change. While middle-income families’ taxes will typically remain steady, there are a few instances where they could end up paying more.

One way individuals could end up paying more is through Biden’s proposed reinstatement of Obamacare’s mandate penalty for not having insurance. If health insurance isn’t purchased, the penalty would be an additional tax. Another way households might find themselves paying more in taxes is because of corporate tax increases. This will directly impact those owning stocks.

Adjustments for the Top 1% of Taxpayers
While middle-income families are mostly in the clear for tax increases, high-income households will likely take the burden of the proposed tax plan. In fact, Americans in the top 1% of households would see an after-tax income decrease of 16%—averaging a tax increase of $265,640.

Cap Deductions for Wealthy Taxpayers
For taxpayers that earn less than $400,000, they’ll be able to take the full value of itemized deductions. Households earning more than the $400,000 threshold will have the value of itemized deductions capped at 28%.

Capital Gains Taxed as Income
This proposed tax change has the largest impact on investors — especially those who have large investments in the stock and bond markets. When investors currently sell a share, they’re taxed differently than income. Under Biden’s plan, these gains would be treated like standard income.

As a result, any capital gains earned annually would be added as a form of income similar to salary and bonuses. This means that if individuals currently earn a lot of money through capital gains, they could find themselves with a big increase in their taxes.

Business Tax Changes

Businesses tend to take the brunt of the impact of Biden’s proposed business tax changes.

Increase the Corporate Tax Rate to 28%
The current tax rate for corporations is 21%. Under Biden, he is proposing the tax rate is increased to 28%—a pretty big jump in size. While there is a chance that tax increases get passed down to consumers through raised prices and labor, the increase in corporate tax rates shouldn’t impact the consumer much.

Set a Corporate Tax Minimum
In the past, large corporations like Amazon have been able to find ways to not pay taxes through various loopholes. However, Biden’s proposed tax plan ensures that all companies, no matter the scenario, will pay a minimum of 15% on all reported profits.

Tax Foreign Profits at 21%
One of the most drastic changes to tax rates impacts corporations and is related to foreign profits. Any money that is earned by foreign arms will have its tax doubled from 10.5% to 21%.

Tax Consulting Services in Cedar City, Utah

With proposed tax changes right around the corner, it can be overwhelming wondering what to expect. As you run into scenarios that may affect your taxes, you might decide that you’d like a tax consultant on your side to walk you through everything you need to know.

The AA Tax & Accounting Services team is committed to maximizing our clients’ tax savings and helping you feel confident come tax season. Contact us to schedule an appointment.

Important Tax Info For Multi-Family Properties

Important Tax Info For Multi Family Properties

As a residential property investor, it’s important to take advantage of tax benefits when possible to ensure you’re boosting your bottom line. Paying taxes is a must and can be quite costly, which is why there are many tricks to minimize the obligations surrounding multi-family home taxes.

Let’s explore the different ways that real estate investors can make reductions to the amount of property taxes owed on their multi-family homes.

Real Estate Depreciation Tax

Real estate depreciation is based on the principle that a rental property’s value declines over time due to wear and tear on the home. Think about it like a car’s value. As soon as the car comes off the lot, the quality and value begin to diminish. However, the home’s value is not usually decreasing because of factors like maintenance, renovations, neighborhood popularity, and market demand — which is why real estate depreciation is often referred to as a “phantom” expense for investors.

Because of real estate depreciation, the IRS allows investors to take a tax deduction based on the estimated decrease in the value of the multi-family property. This means that the investors can actually have a positive cash flow from the multi-family property, but shows a tax loss on paper — offering investors a major tax break.

How to Calculate Real Estate Depreciation

The IRS believes that a residential property is only useful for 27.5 years. This means that investors are able to deduct a depreciation expense from their taxes. Calculating your multi-family property’s depreciation amount is relatively simple and requires you to divide the property’s value by 27.5.

As an example, let’s look at a multi-family property worth $750,000. When dividing it’s value by 27.5, you will calculate a depreciation expense of $27,272.

Factoring that depreciation expense into your taxable income illustrates just how much an investor will save. Consider that your multi-family property generates $100,000 per year. This means you would have the following tax obligations:

Taxes owed without depreciation = $100,000 x 25% (federal income tax) = $25,000
Taxes owed with depreciation = ($100,000 – $27,272) x 25% = $18,182

With no other deductions other than a real estate depreciation tax, investors in this scenario would save $6,818 annually — which is massive tax savings of property taxes for multi-family homes!


Similar to real estate depreciation, there is another tax benefit known as cost-segregation which also factors in the depreciation of elements within the multi-family property. This includes elements such as appliances, fixtures, and cabinets.

Unlike the home itself, these items within the home have a much shorter lifespan which can be written off taxes for no more than seven years.

One important thing to note when considering cost-segregation is that the more you use this on your annual taxes, the higher your tax bill will be upon selling the property. If you plan to sell the property and want to reduce taxes during the sale, be mindful of this tax benefit for multi-family homes in Utah.

Tax Deductions

As a residential real estate investor, you must take advantage of various tax deductions. In layman’s terms, a tax deduction is any type of expense that can be written off of your taxable income. With your multi-family home taxes, you have the ability to deduct any expenses incurred while managing, maintaining, or repairing your property from the total taxable rental income.

Consider writing off the following expenses you might incur with your multi-family property:

  • Property management costs
  • Maintenance or repair fees
  • Monthly utilities (water, gas, electric, etc.)
  • Property marketing costs
  • Mortgage interest
  • And more!

Investors of multi-family properties can really benefit from tax deductions (as well as depreciation and cost-segregation) in comparison to single-family investments. When filing property taxes for multi-family homes, you can pay a single tax bill that covers all the units within the property — making it more efficient to file and likely offers a higher rate than that of a single-family home.

The AA Tax & Accounting Services team is committed to maximizing our clients’ tax savings. Our full-service accounting firm has spent years serving Cedar City, Utah, and surrounding Southern Utah towns providing effective tax strategies for multi-family investors. Contact us to schedule an appointment.

When Does Converting A Traditional IRA To A Roth IRA Make Sense?



Some people only consider working with an experienced tax consultant during tax season. Yet, your tax burden doesn’t come into play only once a year. By making the right investments, you can reduce your tax burden.

One way that individuals are looking to reduce their tax burden is by switching their traditional IRA to a Roth IRA. For some, dealing with their retirement accounts is intimidating, and so they are reluctant to make any significant changes. But if you can save yourself future taxes, it may be worth it to work with a qualified Cedar City accountant to determine if it makes sense to convert your traditional IRA into a Roth IRA.

Difference Between Traditional IRA And Roth IRA

Sometimes, the terms traditional IRA and Roth IRA are used interchangeably to refer to retirement plans as a whole. However, these are distinctly different retirement strategies. To ensure that you are clear on the differences between them, here are how both are defined:

  • Traditional IRA – Income deposited in a traditional IRA is invested pre-tax. Your investments are allowed to grow without dividends income taxes or capital gains taxes being assessed until you withdraw from your IRA. Depending on your modified adjusted gross income, and potentially other factors, you may be able to deduct traditional IRA contributions from your taxes. However, there are other considerations to keep in mind with a traditional IRA. For instance, you will, in most instances, be required to pay income taxes when you withdraw money from your traditional IRA. Also, there is a penalty if you withdraw from your traditional IRA before 59 ½. There is also a penalty if you don’t make the minimum withdrawals from your traditional IRA after you are 72 years old.
  • Roth IRA – Contributions to a Roth IRA are already taxed, so when you make a withdrawal, you can pull from your Roth IRA without paying any additional taxes. You do still need to be at least 59 ½ to avoid the early-withdrawal penalty. There is also no minimum withdrawal mandate with a Roth IRA. Also, as this money has already been taxed, you cannot deduct your Roth IRA contributions from your taxes. Now that these two retirement savings options have been defined let’s look at why someone would convert their traditional IRA into a Roth IRA.

Why Convert Traditional IRA To A Roth IRA

The main reason why someone might convert their traditional IRA into a Roth IRA is to minimize their tax burden. However, the timing of this conversion plays a large part in whether or not it is in your best interest to convert your traditional IRA to a Roth IRA.

For instance, a traditional IRA loses value if the stock market experiences a downturn. In many cases, it is not recommended to alter your retirement plans just because of stock market fluctuation—these ups and downs are expected over the lifetime of your traditional IRA. However, if you are looking for greater security and fewer fluctuations, a Roth IRA will offer that.

There are, of course, other considerations that need to be taken into account when considering converting a traditional IRA to a Roth IRA, which is best discussed with a seasoned accountant.

Review Your Retirement Plan Options With An Experienced Accountant

When consulting with our accountant, factors such as your time until retirement, tax bill associated with converting a traditional IRA to a Roth IRA, or having a mix of accounts will be considered. It is impossible to say in one blog post what would be best for your personal finances, as everyone has their own combination of financial concerns.

To review your retirement plan options, discuss tax burden reduction strategies, or other accounting business with our experienced accountant, please contact us today to arrange for a consultation.

Holiday Season In Cedar City Utah

The end of the year is both a busy and joyful time of the year. And, as you prepare for your 2019 tax filing with your local Cedar City accountant, be sure to take some breaks to enjoy what the holiday season has to offer here in our beautiful part of Utah.

Enjoy The Seasonal Holiday Markets

If you have been putting off your holiday shopping or you are just looking for the perfect stocking stuffers, then you are in luck. There are a number of seasonally-themed holiday markets for you to enjoy the unique and artisanal goods available.

  • Christmas Bazaar (Dec. 5) – Come by the Paiute Indian Tribe Gym from 2 pm – 7 pm for a special holiday market featuring local craftsmen and food vendors.
  • Holiday Market (Dec. 6-7) – For an admission price of $1 per person, you can come by the Frontier Homestead State Park Museum for a bustling holiday market. On Friday, this event will run from 11 am – 8 pm, and on Saturday it will go from 9 am to 3 pm.
  • Christmas at the Homestead (Dec. 1-6) – A Christmas staple in Cedar City is the Christmas at the Homestead event at the Frontier Homestead State Park. With an affordable admission of $2 per person or $5 per family, come immerse yourself in the festive spirit where you can enjoy crafts, have the kids meet Santa, listen to Christmas music, and more.
  • Christmas on the Farm (Dec. 7, 9, 14, 16) – Blend activities with some Christmas shopping when you go to Christmas on the Farm. From caroling hayrides to crafts and stories with Santa, there is plenty to do when you are done with the Farm Store. This event requires tickets, and costs $5 per person, though children under 1-year-old are free. Times vary depending on what day you want to go, so be sure to check the time as you go to buy your tickets from Nature Hills Farm.
  • Santa at the Farmers Market (Dec. 14) – At the year-round downtown farmers market, the whole family is welcome to browse, shop, as well as meet Santa and take photos with him. There will be plenty of craft vendors and food vendors, so drop by between 11 am – 1 pm to enjoy the fun.

Revel In Christmas Performances

If you are looking for music, plays, and other performances to help you get into the holiday spirit, then Cedar City is the place to be. The month of December is packed with performances you can enjoy!

  • TubaChristmas (Dec. 7) – If you ever wanted to belt out your favorite Christmas carols with tuba players, then don’t miss TubaChristmas, held outside the Old Rock Church. This event is free and will be from 1 pm to 2 pm.
  • Handel’s Messiah (Dec. 8) – Come to the 79th Ceder City performance of Handel’s Messiah, performed by the Orchestra of Southern Utah & Chorale. This night of glorious music will be held at the Heritage Center Theater and is free of admission, though you will need to pick up a ticket from the box office.
  • Moscow Ballet: Great Russian Nutcracker (Dec. 10) – At the Heritage Center Theater, catch the one-night performance of Moscow Ballet’s Great Russian Nutcracker at 7:30 pm. Become immersed in music and magic as this classic Christmas tale is performed. Tickets are $30 for adults and $15 for students, with no children under 6 years old allowed.
  • White Christmas the Musical (Dec. 12-14) – Put on by Iron Stage Theatrical, come enjoy White Christmas the Musical at the Cedar High School Auditorium. With a performance at 2 pm then one at 7 pm, the whole family can enjoy this performance. Ticket prices are $5 for children and $10 for adults with a $35 family pass available.
  • In Jubilo Christmas Concert (Dec. 12) – Free of admission, this concert will be held at the Heritage Center Theater at 7 pm.
  • Master Signers Christmas Concert (Dec. 15) – Free of admission, this concert will be held at the Heritage Center Theater at 7 pm.
  • Red Rock Singers Christmas Concert (Dec. 18) – Free of admission, this concert will be held at the Thorley Recital Hall at 7:30 pm.
  • A Christmas Carol on the Air (Dec. 19-20) – Done in the style of an old-fashioned radio show, A Christmas Carol on the Air, tells the classic Christmas Story by Charles Dickens. Starting at 7 pm at the Heritage Center Theater, tickets for children, veterans, and students are $10, and adults are $15.

If you have any tax or accounting needs you would like to get in order before the end of the year, you can always work with our accountant. Be sure to contact us to set up an appointment to ensure that you go into the new year with your finances on track.

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