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Year-End Tax Planning for Itemized Deductions

For 2016, the standard deduction is $6,300 for single taxpayers (and for married persons filing separately) and $12,600 for married couples filing jointly. For heads of household, the standard deduction is $9,300. People who have reached age 65 by year-end can take an additional standard deduction of $1,250, if married, or $1,550, if not married. Taxpayers who are blind also get this additional standard... Read More

Year-End Business Tax Planning

The PATH Act’s many provisions also include a permanent increase in the amounts allowed under IRC Section 179, which permits rapid deduction (expensing) of funds spent for business equipment. For 2015, expensing up to $500,000 of equipment was allowed with no phaseout beginning at $2 million of purchases. For 2016, the inflation adjusted amount is $2,010,000. In addition, the PATH Act makes permanent the... Read More

Year-End Tax Planning for Deducting Taxes Paid

As mentioned in a previous article, a new law makes the sales tax deduction permanent. Keep in mind that you deduct sales tax instead of state and any local income tax. You can’t deduct both sales and income taxes. The new provision obviously will benefit taxpayers who live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, none of which has state income tax. If you live in such a... Read More

Increased Tax Benefits Due to Inflation Adjustments

The Internal Revenue Service has announced the tax year 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2016-55 provides details about these annual adjustments. The tax year 2017 adjustments generally are used on tax returns filed in 2018. The tax items for tax year 2017 of greatest interest to most... Read More

IRS Unveils Procedures to Renew ITINs

The IRS has announced procedures to renew Individual Tax Identification Numbers (ITINs) to reflect the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The IRS also updated its online frequently asked questions (FAQs) about ITINs. Take away. Only ITINs scheduled to expire at the end of the year and that need to be included on a U.S. tax return in 2017 should be renewed now, the IRS instructed. To... Read More

Investing in Gold Can be Taxing

Investment asset classes include precious metals, especially gold. Enthusiasts cite several reasons for including gold in a diversified portfolio. If governments print money to cover increasing obligations, gold may act as an inflation hedge. Moreover, gold can offer a safe haven in times of geopolitical upheaval: in mid-2016, for example, when Great Britain voted to leave the European Union (Brexit) and... Read More

What Goes Into a Health and Wellness Program

A 2016 report from the Society for Human Resource Management found that 78% of surveyed businesses offered wellness benefits to their employees. It’s true that wellness programs are most common in large corporations, but small companies also can offer these benefits and reap the advantages. Generally, wellness programs may improve worker morale and perhaps lead to greater retention of key employees.... Read More

Financial Steps to Take When a New Bundle of Joy Arrives

The arrival of a newborn is a joyous occasion. Even while emotions are at their peak, though, you shouldn’t neglect the practical aspects. Several steps should be taken to protect the family’s finances, and the sooner the better. Start with Social Security Assuming the birth takes place in a hospital, ask for a birth registration form; most hospitals distribute them to maternity patients. Check the... Read More

PTO: How to Avoid Policy Confusion

Employers may think it’s ironic that would-be workers often focus on how much time they won’t be working, when they consider job offers. However, it’s clear that offering time off may help to attract and retain valued employees. For business owners, the key is to develop a policy that provides flexibility and downtime without harming the company’s productivity. Broadly speaking, company-paid days... Read More