Tax Advice
With so many changes every year on income tax filing and regulations, it can be beneficial to have a professional who has your back with the IRS. DiSalvo and company is here to help with your year end planning and to get you ready for next year. Let us take the confusion out of this important time for you.
According to the National Society of Accountants these are several key elements that need to be considered.
- “Keep an eye on AGI: Since some tax benefits — including itemized deductions. personal exemptions, and education and adoption credits — get phased out depending on a taxpayer’s adjusted gross income, deferring income may also make sense depending on their current AGI.
- Max out retirement accounts: If a taxpayer’s employer offers matching, then maxing out contributions to a 401(k) is as close to a no-brainer as you can get – but even without matching, sequestering income in 401(ks), IRAs, Keoghs and the like is still a great deal.
- Tax-loss harvesting: Even in the current bull market, a portfolio can contain some duds – but they can still be useful! Taxpayers with large amounts of taxable gains in 2016 may want to offset some of those by realizing losses on those duds to lower their overall capital gains exposure.
- Be careful with mutual funds: Many mutual funds make capital gains distributions in December, so taxpayers will want to bear that in mind when buying or selling. That a fund is or isn’t planning a major distribution needn’t necessarily be a deal-breaker – but it may add to the eventual tax bill.”
Tax preparation is our area of expertise. We also help businesses build a plan for their companies success in a new year.
Pete DiSalvo
CPA – DiSalvo Logo
Tax Incentives for Small Businesses
In Indian River county most of our businesses have less than 100 employees. they are the lifeblood of our beautiful county, they keep people employed and even help start more small businesses.
Being a small business owner is hard enough throughout the year but tax time brings its own special challenges. DiSalvo and company is here to help with your end of year planning and to get you ready for next year as well as planning best for your business for the coming year.
With so many different changes put into effect in 2015, taxes can be extremely confusing to the Average Joe. Now compound that with all of the incentives for small businesses and you have a recipe for disaster without adequate guidance.
According to Accounting Today, small businesses have these updated tax incentives to consider during their preparation time this season.
“New permanent incentives for businesses: The Protecting Americans from Tax Hikes (PATH) Act, enacted in December 2015, made a number of tax incentives permanent. For businesses, these include:
- The reduced five year recognition period for S corp built-in gains tax;
- 15-year straight-line cost recovery for qualified leasehold improvements, restaurant property and retail improvements; and,
- Charitable deductions for the contribution of food inventory.
- Write-offs for equipment purchases. Two important deduction options apply to purchases of equipment and machinery:
- Write-offs for leasehold, restaurant, and retail improvements.
- Charitable contributions. Corporations can deduct their contributions up to 10 percent of taxable income. Contributions by pass-through entities are claimed by owners on their personal returns, subject to their adjusted gross income limits.”
Before you get bogged down in all of the other end of the year business, take a moment to book your appointment for early next year. The earlier you start your tax prep, the sooner we can get things prepared for you. It also helps us advise you on what things we can help you implement for next year.
Pete DiSalvo, CPA
CPA – DiSalvo Logo
End of the year Tax Tips
With the end of the year, all new questions and concerns about filing your income taxes arise. Now is the time to start thinking about last minute adjustments that need to be enacted now to make your filing even easier. DiSalvo and Company is here to help with your end of year planning and to get you ready for next year.
According to Accounting Today here are several tax tips that will benefit individuals this year.
“First – what’s not changing: While President-elect Trump is in a strong position to enact his promise of lower tax brackets next year, it’s important to remember that the current income tax rates of 10, 15, 25, 33, 35 and 39.6 percent are still in effect for the tax returns being filed next mid-April. The standard deduction amounts remain $6,300 single/married filing separately, and $12,600 for married filing jointly. The standard deduction for heads of households, however, rises to $9,300.
Deferring income: If the president-elect does manage to lower and simplify the individual tax brackets per his plan, that means rates next year will be lower, so it might be worth it for individuals to consider deferring some income into 2017. That may mean getting a bonus in January, instead of December, or waiting to redeem a savings bond, or putting off debt forgiveness income.
New permanent incentives for individuals: The PATH Act of 2015 made a number of tax incentives permanent. For individuals, these include:
- The American Opportunity Tax Credit;
- The teachers’ $250 classroom expense deduction;
- The ability to deduct state and local sales tax instead of state income taxes;
- The exclusion for direct charitable donation of up to $100,000 from an IRA; and,
- The 100 percent gain exclusion on qualified small-business stock.”
If this all sounds a bit overwhelming, not to fear, DiSalvo and company are here to help with any and all of your Tax questions. We keep up with the latest in Tax rules so that you don’t have to worry about anything but your own business, so give us a call.
Pete DiSalvo
CPA – DiSalvo Logo
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