Weekly Tax Brief

Ensure your year-end donations will be deductible on your 2016 return

Details: Published: 08 December 2016 08 December 2016

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year end to qualified charities.

Year-end tax strategies for accrual-basis taxpayers

Details: Published: 28 November 2016 28 November 2016

The last month or so of the year offers accrual-basis taxpayers an opportunity to make some timely moves that might enable them to save money on their 2016 tax bill.

A brief overview of the President-elect’s tax plan for individuals

Details: Published: 15 November 2016 15 November 2016

Now that Donald Trump has been elected President of the United States and Republicans have retained control of both chambers of Congress, an overhaul of the U.S. tax code next year is likely. President-elect Trump’s tax reform plan, released earlier this year, includes the following changes that would affect individuals:

There’s still time to set up a retirement plan for 2016

Details: Published: 09 November 2016 09 November 2016

Saving for retirement can be tough if you’re putting most of your money and time into operating a small business. However, many retirement plans aren’t difficult to set up and it’s important to start saving so you can enjoy a comfortable future.

It’s critical to be aware of the tax rules surrounding your NQDC plan

Details: Published: 02 November 2016 02 November 2016

Nonqualified deferred compensation (NQDC) plans pay executives at some time in the future for services to be currently performed. They differ from qualified plans, such as 401(k)s, in that:

Beware of income-based limits on itemized deductions and personal exemptions

Details: Published: 28 October 2016 28 October 2016

Many tax breaks are reduced or eliminated for higher-income taxpayers. Two of particular note are the itemized deduction reduction and the personal exemption phaseout.

What the self-employed need to know about employment taxes

Details: Published: 20 October 2016 20 October 2016

In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. All earned income is subject to the 2.9% Medicare tax.

Are you timing business income and expenses to your tax advantage?

Details: Published: 11 October 2016 11 October 2016

Typically, it’s better to defer tax. One way is through controlling when your business recognizes income and incurs deductible expenses. Here are two timing strategies that can help businesses do this:

Tax-smart options for your old retirement plan when you change jobs

Details: Published: 05 October 2016 05 October 2016

There’s a lot to think about when you change jobs, and it’s easy for a 401(k) or other employer-sponsored retirement plan to get lost in the shuffle. But to keep building tax-deferred savings, it’s important to make an informed decision about your old plan. First and foremost, don’t take a lump-sum distribution from your old employer’s retirement plan. It generally will be taxable and, if you’re under age 59½, subject to a 10% early-withdrawal penalty. Here are three tax-smart alternatives:

Get 2 tax benefits from 1 donation: Give appreciated stock instead of cash

Details: Published: 28 September 2016 28 September 2016

If you’re charitably inclined, making donations is probably one of your key year-end tax planning strategies. But if you typically give cash, you may want to consider another option that provides not just one but two tax benefits: Donating long-term appreciated stock.

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