Friday, May 26, 2017

IRS ANNOUNCES BUSINESS VEHICLE DEDUCTION LIMITS FOR 2017


The IRS has published depreciation limits for business vehicles first placed in service this year. These limits remain largely unchanged from 2016 limits. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
* For new business cars, the first-year limit is $11,160; for used cars, it's $3,160. After year one, the limits are the same for both new and used cars: $5,100 in year two, $3,050 in year three, and $1,875 in all following years.
* The 2017 first-year depreciation limit for trucks and vans is $11,560 for new vehicles and $3,560 for used vehicles. The limits for both new and used vehicles in year two are $5,700, in year three $3,450 (up $100 from 2016), and in each succeeding year $2,075.
For details relating to your 2017 business vehicle purchases, contact us at (518) 798-3330.

Tuesday, May 23, 2017

WILL YOUR TAX REFUND BE OFFSET BY DEBTS?


Be aware that if you have unpaid federal or state debt, such as overdue child support, state income tax, or student loans, all or part of your 2016 income tax return may be redirected to pay the debt. This is called the offset program. If an offset occurs with your tax return, the Treasury Department's Bureau of Fiscal Service will send you a notice. The notice will list the original refund and offset amounts, as well as the name and contact information of the agency that received the payment. If you have questions, contact our office at (518) 798-3330.

Thursday, May 18, 2017

THE IMPORTANCE OF MAINTAINING GOOD TAX RECORDS

Keeping your tax records organized year-round is a good practice and will keep you from hastily assembling your documents for your annual tax preparation appointment. If you are diligent about maintaining your tax records, you won't have to worry about losing a valuable deduction because you forgot to list expenses on your return, or having unsubstantiated items disallowed in the event of an audit.

Generally, your tax returns can be audited up to three years after filing. However, if income is underreported more than 25%, the IRS can collect underpaid taxes up to six years later. So, keeping good records means you'll always be able to verify what you report on your tax return. Hang on to your tax records for seven years.

Tuesday, May 16, 2017

WHY YOU SHOULD CONSIDER A MIDYEAR TAX REVIEW


Most people don't include tax planning on their summertime agenda, but there are benefits to doing so. The problem with waiting until the end of the year is that you reduce the time for planning strategies to take effect. If you take the time now to schedule a midyear tax planning review, you will have eight months for your actions to make a difference on your 2017 tax return. In addition, proposed tax reform could be cause for additional changes to your tax plan. Planning now for 2017 taxes not only helps reduce your taxes, but it may help you gain control of your entire financial situation. Give us a call at (518) 798-3330 to set up an appointment today.

Monday, April 10, 2017

WHAT YOU SHOULD DO WHEN THE IRS CONTACTS YOU

Has the IRS questioned something on your tax return? Ignoring it is not the proper course of action. Learn the do's and don'ts of IRS correspondence.

Thursday, April 6, 2017

LAST CHANCE TO CLAIM A 2013 REFUND


According to the IRS, nearly one million taxpayers who failed to file a return for 2013 are in danger of losing refunds. Tax law provides a three-year period to claim a refund when no return is filed. That means you'll have to file a tax return for 2013 no later than this year's April tax deadline – April 18 – or the chance to claim the refund is gone for good.

IS AN AUTOMATIC TAX FILING EXTENSION THE RIGHT MOVE FOR YOU?

Can't finish your federal income tax return by the April 18 deadline? There's still time to get an automatic six-month extension.

There are four ways to obtain an extension:
1.    File a paper copy of Form 4868 with the IRS and enclose your payment of estimated tax due.
2.    File for an extension electronically using the IRS e-file system on your computer.
3.    Using IRS Direct Pay, you can pay all or part of your estimated income tax due and indicate    the payment is for an extension.
4.    Have your tax preparer e-file for an extension on your behalf.
Remember that even if you file for an extension, you are still required to pay any taxes you owe by the April 18 filing deadline. An extension gives you more time to file your tax return, but not more time to pay the taxes you owe. You will be charged interest on any taxes you owe and do not pay by the filing deadline. If you are unable to pay on time, contact the IRS to set up a payment agreement.
Special extension rules apply to members of the military serving in combat zones and to certain others who live outside the U.S. Give us a call at (518) 798-3330 so we can discuss whether or not an extension is right for your situation.