HOW SOCIAL SECURITY BENEFITS ARE TAXED

Are you wondering if your social security retirement, survivor, and disability benefits will be subject to federal income tax on your 2016 return? Generally, when these benefits are taxed is determined by your "provisional income."

CLEAN YOUR FINANCIAL HOUSE FOR THE NEW YEAR

Out with the old, in with the new. No matter whether you apply the expression to changes in attitude or to life adjustments, the end of the year is a great time to assess your household finances and prepare for new opportunities. Here are suggestions.

DON'T INCLUDE THE IRS ON YOUR GIFT LIST

Suppose a relative gives you an expensive painting. Several years later, your relative dies and you decide to sell the painting. Your accountant says you'll owe capital gain tax on the sale, and asks for your basis in order to reduce the amount on which you'll pay tax. What's your answer?

HAVING PROBLEMS KEEPING EMPLOYEES?

Is retention of good employees a priority for your business? Consider conducting "stay" interviews. These meetings between managers and valued employees can provide insight into why your employees like their jobs, which in turn lets you know how to retain the employees. Conducted on a regular basis, generally more than once a year, stay interviews tell employees you're serious about accepting feedback and keeping them on the job.

COMPLETE THESE RETIREMENT PLAN STEPS BEFORE YEAR-END

December 31 is the last day you can benefit from certain retirement tax breaks. For example, if you haven't put the maximum amount allowed in your 401(k) – $18,000 in 2016 – increasing your contributions can save you money. If you're over age 50, you can make a catch-up contribution to a 401(k) of an additional $6,000. If you're age 70½ or older, remember to take required minimum distributions from retirement plans to avoid a penalty. For more tips on managing your retirement plans, contact us at (518) 798-3330.

YOUR SUDDENLY DEAD MOBILE PHONE MAY BE A SIGN OF FRAUD

According to the Federal Trade Commission, in a growing type of fraud known as a "SIM swap" scam, fraudsters take over your mobile account in order to steal your identity. The SIM, or subscriber identity module, card in your phone is the memory chip that stores information identifying the phone to a network. Thieves contact your phone company, claiming to be you, and request activation of a new SIM card with your existing phone number. Your phone goes dead, and the thief can then intercept phone calls and text messages that allow access to financial accounts. As a safeguard, consider adding a password that must be activated before your phone account can be changed.

S CORPORATION LOSS FOR 2016? CHECK YOUR BASIS

Typically, stock basis in an S corporation begins with the capital contribution you make to get the company started. At the end of each taxable year, your stock basis is adjusted to reflect your business's operating results. After your stock basis reaches zero, you may be able to deduct additional losses, up to the extent of your debt basis. However, once your stock and debt basis are both reduced to zero, losses incurred are suspended, and you get no current tax benefit. Contact us at (518) 798-3330 if you're in this situation. We can provide a solution and guide you through the rules.