Are
you planning to itemize on your 2015 federal income tax return? If so, you can
claim a deduction for taxes paid. According to IRS statistics, taxes are the
most frequently claimed itemized deduction, as well as the largest. But what
kind of taxes can you deduct on your personal return?
Tuesday, March 29, 2016
Thursday, March 24, 2016
BE AWARE OF THESE FOUR IRA RULES
If
you have an individual retirement account, you're aware of how complicated the
rules can get. Here are four to remember as you prepare your 2015 federal
income tax return.
Labels:
Investment planning,
retirement plan,
tax planning
Monday, March 21, 2016
GET CREDIT FOR RETIREMENT CONTRIBUTIONS
Did you make contributions to a
traditional or Roth IRA, a myRA, or a SEP or SIMPLE plan in 2015? You may qualify
for the Retirement Savings Contributions Credit, more popularly known as the "saver's"
credit. If you're eligible, you can apply this federal income tax credit
against the tax you owe on your 2015 return. The credit is available even if
you take a tax deduction for a traditional IRA contribution, as well as for IRA
contributions for last year that you make before the April due date of your
return.
Thursday, March 17, 2016
HIRING WORKERS CAN BRING TAX BREAKS
The Work Opportunity Tax
Credit, known as WOTC, can reduce your federal income tax liability dollar-for-dollar
when you hire certain workers. The credit is available for 2015 if you hired workers
from "targeted" groups, such as ex-felons, food stamp recipients, and
Supplemental Security Income recipients. Beginning in 2016, you can also claim
the credit when you hire individuals who were unemployed for at least 27
consecutive weeks and who received unemployment compensation.
Labels:
Business Planning,
tax planning
Monday, March 14, 2016
NEW TAX BENEFITS AVAILABLE WHEN CLAIMING THE RESEARCH AND DEVELOPMENT CREDIT
If you conduct qualified
research activities, you may be eligible to claim a federal income tax credit
known as the "research and development" credit. This credit is now
permanent and may benefit you when you design, develop, and improve business
products or processes. Beginning in 2016, the research and development credit
can be applied against your alternative minimum tax liability. In some cases,
the credit may also be applied against up to $250,000 of payroll taxes.
Labels:
tax planning
Wednesday, March 9, 2016
WHICH DEPRECIATION METHOD IS BEST FOR YOUR BUSINESS?
When you purchase assets and
use them in your business, you have several options for deducting the cost. For
example, you may choose to write off the full cost using Section 179, an
alternative that lets you expense up to $500,000 of new and used equipment
purchases. You can also use "bonus" depreciation to write off up to
50% of the cost of new assets with a life of 20 years or less. In both cases,
you apply regular depreciation methods to the remaining value of the assets.
The best way may not be a single choice, but rather a combination that
optimizes your tax benefit. Contact us at (518) 798-3330 for a depreciation review.
Labels:
tax planning
Monday, March 7, 2016
ONE MORE EXTENSION FOR ESTATE EXECUTORS
A law passed last summer added
a new task for estate executors and others who file estate tax returns after
July 31, 2015: providing a statement of the value of estate assets to
beneficiaries and the IRS. The statement is designed to ensure consistency between
the value of the property for estate tax purposes and the basis a beneficiary
reports for income taxes. The information is filed on Form 8971, Information
Regarding Beneficiaries Acquiring Property From a Decedent. If you're required
to complete Form 8971 before March 31, 2016, you do not need to do so until March
31, 2016. (The original due date was February 29, 2016.)
Labels:
estate planning,
tax planning
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