TMTW #262-Watch Out at Year End 2015-Expired Tax Provisions: Are They Coming Back?

Posted on December 9, 2015 by taxblogger

Tax and Money Tip this Week:
Watch Out at Year End 2015- Expired Tax Provisions: Are They Coming Back?
December 9, 2015 | No. 262

For the last several years, taxpayers have faced great uncertainty determining whether they can depend on tax incentives to help them lower taxes.  These have become known as the “51 Tax Extenders”.  Last December, Congress extended most of these provisions for one year retroactively to the beginning of 2014, but not going forward, so they expired again at the end of 2014.

Unlike many previous years, Congress did not spend much time or effort this summer working to fix the extenders situation.  So, as we enter the last quarter of 2015, with most of the tax incentives expired, it’s a good time to review which provisions might get a last minute reprieve.

We will look at the major pending extenders for individuals, businesses and energy-related provisions:

Individuals
–    Educator’s $250 above-the-line deduction for classroom supplies
–    Exclusion from income for discharge of debt on a primary residence
–    Deduction for mortgage insurance premiums (PMI)
–    Deduction of sales taxes in lieu of state/local taxes
–    Special rules for capital gain treatment of conservation easements
–    Option to use above-the-line deduction for tuition expenses
–    Option for those over age 70.5 to make tax-free contributions in lieu of taking taxable RMDs.

Businesses
–    Research & Development credit
–    Employee wage credit for active duty and reserve military employees
–    15-year straight line cost recovery for leasehold improvements
–    Section 179 and Section 168 accelerated depreciation options on capital purchases

Energy-related tax incentives
–    Several credits for renewable and energy-efficient fuels
–    Several credits for energy-efficient building construction

If history is any guide, and Congress finally acts, it will be at the last minute.  This makes tax planning on many issues nearly impossible.  With the election nearing, the situation this year may be worse than normal.

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.

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TMTW # 261- IRA & Retirement Plan Limits for 2016

Posted on December 2, 2015 by taxblogger

Tax and Money Tip this Week:
IRA and Retirement Plan Limits for 2016
December 2, 2015 | No. 261

Source: Broadridge Advisor Solutions

Many IRA and retirement plan limits are indexed for inflation each year. On October 21, 2015, the IRS issued the inflation-adjusted numbers for 2016, and most remain unchanged from 2015.

The maximum IRA contribution for 2016 is $5,500, unchanged from 2015 (the catch-up limit also remains unchanged at $1,000). However, certain phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2016.

Employer retirement plan limits remain generally unchanged from 2016. For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans remains at $18,000, and the catch-up limit remains at $6,000. Similarly, the maximum amount that can be contributed to a defined contribution plan in 2016 is $53,000, unchanged from 2015.
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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW 260-Happy Thanksgiving

Posted on November 25, 2015 by taxblogger

Tax and Money Tip this Week:
HAPPY THANKSGIVING
November 25th, 2015 | No. 260

Hope you and your family have a wonderful Thanksgiving 

 
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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW#259- Year End Tax Planning

Posted on November 18, 2015 by taxblogger

Tax and Money Tip this Week:
Year End Tax Planning
November 18th, 2015 | No. 259

 

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 2015 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 we prepare their tax returns.

For the business owner and individuals, one of the largest expenses can be taxes.  For this reason alone, this expenditure requires planning and monitoring as any other major expense.  A year end planning meeting with your CPA should include a discussion of:

  • any assets purchased during the year
  • anticipated year-end revenues and expenses
  • plans for current year retirement funding
  • any refinancing of debt that occurred in the current year
  • any changes to your business structure

This planning meeting should prepare the business owner or individuals to anticipate the amount of taxes that will be owed on March 15th (or April 15th if the tax burden flows through to the personal return).  To be effective, tax planning needs to be done prior to New Year’s Eve.

Use our experience in year-end tax planning to enhance your bottom line.  Give us a call if you would like to discuss your personal tax situation and see how we can save you 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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW#258- Inheriting an IRA

Posted on November 11, 2015 by taxblogger

Tax and Money Tip this Week:
Inheriting an IRA
November 11th, 2015 | No. 258

 

An informative article on Inheriting an IRA

Click here to read the article


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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW#257- Cash in on Home Bonanza

Posted on November 4, 2015 by taxblogger

Tax and Money Tip this Week:
Cash in on Home Bonanza
November 4th, 2015 | No. 257

 

A great article on getting the most out of your home

Click here to read the article

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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #256- Do Good Things with a Crummey Trust

Posted on October 28, 2015 by taxblogger

Tax and Money Tip this Week:
Do Good Things with a Crummey Trust
October 28th, 2015 | No. 256

Click here to read the article

 

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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #255- Tackling Financial Clutter

Posted on October 21, 2015 by taxblogger

Tax and Money Tip this Week:
Tackling Financial Clutter
October 21st, 2015 | No. 255

Revisiting a past article from the News & Observer.

5 Tips on Tackling Financial Clutter

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.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #254- Don’t Miss October 15th Deadline TODAY

Posted on October 15, 2015 by taxblogger

Tax and Money Tip this Week:
Don’t Miss October 15th Deadline (TODAY)
October 15th, 2015 | No. 254

Today is the deadline. 

If you need to file a Form 1040 (individual return), the deadline to file is October 15, 2015. That is today! This assumes you had filed for an extension prior to April 15, 2015.

You also have until today (October 15, 2015) to fund a SEP-IRA for tax year 2014.

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.

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TMTW# 253- How to Follow the Money

Posted on October 7, 2015 by taxblogger

Tax and Money Tip this Week:
How to Follow the Money
October 7th, 2015 | No. 253

A great article on investing from Investors Business Daily.

Daily, Weekly Charts Uncover Big Institutional Buys In A Stock

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.

 

 

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