Friday, August 28, 2015

SHOULD YOU INCORPORATE YOUR BUSINESS?


One of the first decisions you face as a new business owner is whether or not to incorporate your business. The biggest advantage of incorporating is limitation of your liability. Your responsibility for debts and other liabilities incurred by a corporation is generally limited to the assets of the business. Your personal assets are usually not at risk, although there can be exceptions to this general rule. The trade-off is that there is a cost to incorporate and, in some cases, tax consequences.
Consult our office and your attorney for guidance in selecting the legal entity that is best for your business.

Tuesday, August 25, 2015

DON'T OVERLOOK ABOVE-THE-LINE DEDUCTIONS


Even if you don't itemize deductions on your tax return, you may be entitled to certain "above-the-line" deductions. These deductions are subtracted from your income to arrive at your adjusted gross income, an important number because it determines your qualification for certain tax credits and various tax breaks. Above-the-line deductions include such things as IRA contributions, health savings account contributions, student loan interest, moving expenses, health insurance and retirement plan contributions if you're self-employed, and alimony paid.

Friday, August 21, 2015

SUMMER JOB TAX TIP

If your child has a summer job, consider opening an IRA for him or her. According to the tax rules, anyone under age 70½ who has earned income can contribute to a traditional IRA. There's no age restriction for Roth accounts, though the amount of the contribution phases out at higher income levels. The advantage of a Roth over a regular IRA is that withdrawals in retirement will be tax-free. The contribution limit for both kinds of IRA for 2015 is the lesser of the child's earned income or $5,500.

Wednesday, August 19, 2015

MIDYEAR TAX PLANNING TIP

Take time this summer to examine your investment portfolio for potential tax savings, such as selling stocks that are worth less than you paid to offset your capital gains. You might also donate appreciated stock that you have held for more than one year to charity and avoid capital gains altogether – plus getting a deduction for the stock's fair market value if you itemize. Another step to consider: Buy investments that pay tax-free income, such as municipal bonds, if you're going to be subject to the new 3.8% tax on unearned income.

Monday, August 10, 2015

SEVEN SUMMERTIME TAX-SAVERS



Summer is here and so are tax-saving opportunities. Here are seven suggestions for cutting your tax bill. 

Thursday, August 6, 2015

CONSIDER TAXES WHEN YOU CHANGE JOBS


Taxes may be the last thing on your mind when you're changing jobs, but overlooking their impact could mean missed tax-saving opportunities.  

Monday, August 3, 2015

TRACK USE OF YOUR VACATION HOME TO MAXIMIZE TAX BREAKS


If you own a vacation home (some boats and recreational vehicles also qualify) that you also rent out to others, keep track of who uses it during the year to maximize your tax breaks.