WHAT INVESTMENT EXPENSES ARE DEDUCTIBLE?

Whether you're a stock market bull or bear, you have investment expenses - and you may be wondering if they're deductible on your federal income tax return.

AVOID GROWING PAINS IN YOUR BUSINESS

One way to kill your business is to grow it too fast. Many profitable small businesses have expanded at the wrong time and at the wrong level of increased costs. The result is that they never again make a profit. How does this happen?

IDENTIFY TYPES OF INCOME TO END UP WITH LOWER 2013 TAXES

Act now to identify ways to minimize your 2013 taxes. Start by estimating your 2013 income, sorting it into categories such as wages, investments, passive income, retirement plan distributions, and active business income. Different tax rules apply to different kinds of income, and rules differ at various income thresholds. If you act now rather than later in the year, you'll have time to identify and put tax-saving options to work for you.

A TAX TRAVEL TIP

If you are planning a summer business trip, you and your spouse may be able to travel for little more than you would have paid on your own. For example, if a double hotel room costs $250 and a single room costs $200, you can still deduct $200 as a business expense, even if the two of you get the double.

COMBINE BUSINESS AND PLEASURE THIS SUMMER

You might want to combine a little pleasure with one of your business trips this summer -and save some taxes, too. Within the U.S., if the primary purpose of the trip is business and you add on a side trip or an extra few days for pleasure, you can deduct all the travel costs to and from your business destination and all other business-related costs. You can't deduct costs related to the pleasure portion.

INVOLVE YOUR CHILDREN IN FAMILY FINANCES

Many people feel uncomfortable discussing family finances with their children. However, sharing some information with your grown children can make things more comfortable for everyone.

 

Discuss your financial goals with your adult children, and let them know your plans for your retirement years. It's often a good idea to involve adult children in some or all aspects of your estate planning. Your particular family situation should dictate how much information you share and with whom.

If you would like assistance with your financial planning or discussing finances with your children, please call us at (518) 798-3330. We're here to help.

TAKE AN ENERGY CREDIT

The IRS reminds taxpayers that certain energy credits are still available. If you haven't already taken advantage of them, this may be the year to make energy-efficient improvements to your home. You may be entitled to a credit of 10% of the cost of certain energy-saving improvements such as insulation, windows, doors, skylights, and roofs. The credit has a maximum lifetime limit of $500; the credit for windows is limited to $200. Not all energy improvements qualify, the IRS cautions taxpayers, so be sure you have the manufacturer's credit certification statement (usually available with the product's packaging or on the manufacturer's website).

KEEP AN EYE ON YOUR COMPANY'S CASH

Do you regularly monitor your company's cash accounts? You should. Even if you leave the job to your bookkeeper or accountant, you should stay aware of where the cash is going and how the spending is approved. Along with inventory "shrinkage," theft or improper expenditures of cash are among the chief sources of loss for small companies.

FOLLOW THE TAX RULES WHEN YOU BORROW FROM YOUR CORPORATION

If you're a business owner and your company lends you money, you'll enter it in the books as a shareholder loan. However, if your return is audited, the IRS will scrutinize the loan to see whether it is really disguised wages or a dividend, taxable to you as income. Knowing what the IRS might look at may be useful when you structure the arrangement.

HAVE A FINANCIAL TALK WITH ELDERLY PARENTS

One day you may find yourself taking care of an elderly parent who is in declining physical or mental health. This can be stressful, both emotionally and financially. On the financial side, there are steps you can take to prepare for this situation.