ITEMS ON YOUR 2014 RETURN CAN AFFECT 2015 PLANNING

As year-end approaches, remember to check your 2014 federal income tax return for items that can affect your 2015 planning.

GET READY FOR THE "CADILLAC" TAX

The 2010 Affordable Care Act added a 40% excise tax on high-cost employer-sponsored health insurance (sometimes called "Cadillac" plans). "High-cost" means plans with an annual cost of more than $10,200 for an individual and $27,500 for a family. Beginning in 2018, the tax applies to the amount above that limit. The tax is assessed annually, and is permanent, nondeductible, and applicable to many types of health coverage.

Because of its potentially broad impact, you'll want to start reviewing the health insurance coverage you offer to employees to learn how your business will be affected.

The IRS is just beginning to issue guidance. We'll keep you informed as information is released.

ESTATE EXECUTORS HAVE ANOTHER RESPONSIBILITY

A law effective as of July 31, 2015, included provisions that require certain executors to file a statement with estate beneficiaries and the IRS, notifying both of the value of property as reported on the estate return. Unless an exception applies, the beneficiaries can claim no more than that value when the property is later sold or disposed of.

Under the new rule, the statement is due within 30 days after the estate return is filed or 30 days after the due date of the estate return, whichever is earlier. However, if you're required to file this new statement before February 29, 2016, the due date for filing and furnishing the statement is delayed until February 29, 2016.

We'll keep you updated as guidance becomes available.

LAW REVISES DUE DATES FOR 2016 RETURNS

The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changed due dates for some 2016 federal business returns (the ones you'll file in 2017).

Here's a sample of the changes:

Partnerships (Form 1065) – 2½ months after the close of the tax year. For calendar-year partnerships, that means a due date of March 15.

C corporations (Form 1120) – 3½ months after the close of the tax year. For calendar-year C corporations the due date will be April 15. Note there is a special rule for C corporations with a June 30 year-end. These corporations will not have to comply with the new due dates until after 2025.

S corporations (Form 1120S) – No change. The due date remains 2½ months after the close of the tax year (March 15 for calendar-year corporations).

Call us at (518) 798-3330 for more information.

DISCUSS MONEY BEFORE YOU MARRY

Couples often enter into marriage without ever having had a serious discussion about financial issues. As a result, they find themselves frequently arguing about money. If you are planning a wedding, here are some steps you can take to get your marriage off to a good financial start.

A QUICK RECORDKEEPING GUIDE

Is your file cabinet overflowing? Do you hesitate to purge tax information because you're not sure what to keep and what to discard? Here's a quick guide to help you cut through the clutter.

WATCH YEAR-END MUTUAL FUND TRANSACTIONS

The income tax effects of mutual funds can be complex, and poorly timed purchases or sales can create unpleasant year-end surprises.

OCTOBER 15 IS A FINAL TAX DEADLINE

Time is almost up if you requested a six-month extension to file your 2014 federal income tax return. October 15 is the final date for filing your 2014 return; the IRS generally does not give filing extensions beyond that date.

October 15 is also the deadline for undoing a 2014 conversion of a traditional IRA to a Roth IRA. If you converted your traditional IRA to a Roth last year, you can switch it back to a regular IRA without penalty if you do so by October 15.

Want to know more? Contact our office at (518) 798-3330.

AVOID UNDERPAYMENT PENALTIES

Check the total taxes you've already paid in for the year through withholding from your wages and/or quarterly estimated payments. Are you underpaid? Consider adjusting your withholding for the final months of 2015 or increasing your remaining quarterly estimate. If you employ household workers, include the payroll taxes you'll owe for them in your calculations. Call us at (518) 798-3330 for assistance.

TAKE TIME FOR TAX PLANNING

Take time to review your 2015 tax situation while there are still a few months to make adjustments. Can you benefit from bunching your itemized deductions? Will increasing your retirement plan contributions cut your tax bill? An investment in a tax review could make a significant difference in your final tax bill for the year.

MANAGING AGI COULD PROTECT TAX BREAKS

How close to the edge are you when it comes to tax phase-outs? As you begin your fall tax planning, consider the effects of these benefit-limiting provisions.