Click here to read the article from Business Management Daily
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Tax and Money Tip this Week:
Score Deduction for Booster Club Gifts
October 19, 2016 | No. 307
Click here to read the article on booster club gift giving from Business Management Daily.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Click here to read the article on ‘Spousal IRA’s’ from Business Management daily.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
It is a good time to take a look at how you may be able to reduce your tax bill at the end of the year.
Here are six areas to consider:
1. Load up on equipment: Your business can potentially take a Section 179 deduction of up to $500,000 for qualified property placed in service in 2016, with a phase-out threshold at $2 million. An alternative to writing off the full purchase price of the equipment is to use the 50% Bonus Deprecation option. The point is, buy equipment when you need it and don’t wait for the year-end.
2. Employ your child: If you put your child on the payroll (in an age appropriate job), the wages are deductible just like any other employee. Your child may have to pay taxes on the income they receive, but it will be at a much lower tax rate than you would probably pay. In addition, with this earned income your child could invest in an IRA (a Roth IRA would probably be the best choice).
3. Travel to a resort area: When you travel away on business, your travel expenses—including airfare, hotel and 50% of the cost of the meals—is deductible as long as the primary purpose of the trip is business related.
4. Treat your business clients: When you hold a “substantial business discussion” with a client, you can generally write off 50% of any costs of entertainment preceeding or following the meeting. This may include a round of golf or night at the ballpark. Be sure to keep meticulous records of the expenses and the purpose of the meeting.
5. Pay your quarterly tax bill: If you are self-employed you should be making quarterly estimated payments. Take a look at your income and expenses so far this year. You can then increase, or decrease, the next quarterly payment that is due September 15, 2016.
6. Aim for target workers: Your business can claim the Work Opportunity Tax Credit (WOTC) for hiring workers from one of several “target groups” (such as unemployed or disabled veterans). This credit had originally ended at the end of 2014, but recent tax rule changes extended the WOTC through 2019.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
If you need to file a Form 1040 (individual return), the deadline to file is October 15, 2016. This assumes you had filed for an extension prior to April 15, 2016. You also have until October 15, 2016 to fund a SEP-IRA for tax year 2015.
As a reminder, putting your tax returns on extension can be a good thing – but penalties to miss the extension deadline can be steep, up to 25% penalty of taxes owed, so make sure that you make the October 15th deadline.
Give us a call if you need help meeting your deadline.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Click here to read the article from Bottom Line Personal
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
The North Carolina Attorney General is warning taxpayers of an ongoing bogus IRS telephone scam and has quoted over 7,000 calls since November 2014.
Do NOT answer the call, let it go to voicemail.
If you do answer- do not provide any information- hang up immediately.
After retrieving the number, either through voicemail or caller ID, report the “supposed” telephone number “you are to call”.
Report the number to: NC Attorney General’s Consumer Protection Division at 919-716-6000.
You can also put yourself on the ‘Do Not Call List’ by calling 1-888-382-1222.
The NC Attorney General will report these bogus calls and numbers to IRS enforcement Division which is working to track these scammers down.
These calls are coming from national and international boiler rooms attempting to get personal information and SCAM YOU.
Since these bogus calls can take many forms and scammers are constantly changing their strategies, knowing the telltale signs is the best way to avoid becoming a victim.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Final Filing Deadline Reminder
If you need to file a Form 1065 (partnership return), Form 1120S (S corporation return) or Form 1041 (fiduciary return), the deadline to file your 2015 return is September 15, 2016. This assumes you had filed for an extension prior to April 15, 2016.
If you put your personal tax return on extension (Form 1040), you still have until October 15, 2016 to timely file your 2015 return.
As a reminder, putting your tax returns on extension can be a good thing—but penalties to miss the extension deadline can be steep.
Give us a call if you need help meeting your deadlines.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Wishing you and your family a safe and happy Labor Day
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2016 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when they prepare their tax returns.
Coming up September 15, 2016 is the date in which the 3rd installment for individuals that have income that is not taxed and withheld (like W-2 income) is due.
Self employed businesses, e.g. Proprietor Schedule C filers, folks that own S Corporations, Partnerships, LLCs, or other flow-through entities must estimate their unpaid income and/or self-employment taxes for the period January 1-August 31, 2016 and pay ½ of this amount to IRS and/or NC Dept of Revenue on September 15, 2016 and the other ½ of this amount on or before January 15, 2017. (April 15th and June 15th of each year are also Quarterly Estimated Tax Payment dates that have also passed by if you weren’t aware)
The rules for estimated tax payments depend on your modified adjusted gross income for 2016. “Safety” estimates can be designed to avoid penalties and interest, optimize cash flow, and save taxes
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
taxandmoneyblog.com 