January 6, 2016 12:00 am
Published by Mark
The following table provides some important federal tax information for 2016, as compared with 2015.Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation. Social Security/ Medicare 2016 2015 Social Security Tax Wage Base $118,500 $118,500 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2% 6.2% Individual Retirement Accounts 2016 2015 Roth IRA Individual, up to 100% of earned income...
January 6, 2016 12:00 am
Published by Mark
Ever since the Ohio constitution was amended in 2006, Ohio's minimum wage correlates with the rate of inflation for the twelve months prior to September. The Ohio Department of Commerce has calculated the rate of inflation and determined that based on the consumer price index (CPI), Ohio's minimum wage rates will stay the same in 2016. Ohio's minimum wage is currently $8.10 per hour for regular hourly employees.
December 18, 2015 12:00 am
Published by Mark
Realize losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, then buy back the same securities at least 31 days later.
December 18, 2015 12:00 am
Published by Mark
Facing a December 11 expiration of the current federal spending authorization, lawmakers this week passed a five-day continuing resolution to keep the federal government open through December 16 while they continue to seek agreement on agency funding for the rest of the fiscal year. Although a bill to extend 50-plus expired and expiring tax provisions might move through Congress separately, the fate of that package now is tied to the so-called omnibus spending bill. Leadership and the senior mem...
December 18, 2015 12:00 am
Published by Mark
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the challenge include turbulence in the stock market, overall economic uncertainty, and Congress's failure to act on a number of important tax breaks that expired at the end of 2014. Some of these tax breaks ultimately may be retroactively reinstated and extended, as they were last year, but Congress may not decide the fate ...
December 18, 2015 12:00 am
Published by Mark
Businesses should buy machinery and equipment before year end and, under the generally applicable “half-year convention,” thereby secure a half-year's worth of depreciation deductions in 2015 (if the cost of the machinery and equipment placed in service in the fourth quarter doesn't exceed 40% of the cost of the machinery and equipment placed in service during the year). Although the machinery and equipment expensing option is greatly reduced in 2015 (unless retroactively changed by legislation)...
November 19, 2015 1:20 pm
Published by Mark
Year-end tax planning typically involves reviewing legislation passed by Congress or regulations issued by the Treasury and determining the impact. In what is becoming an unfortunate theme, no significant tax legislation has yet been enacted in 2015, and taxpayers are again faced with uncertainty. However, just because Congress has not provided taxpayers a roadmap for the 2015 tax year does not mean that taxpayers cannot begin planning.
November 19, 2015 1:20 pm
Published by Mark
As year-end approaches, business clients should consider the benefit of including adjustments to income to preserve favorable estimated tax rules for 2016, deferral of certain advance payments to next year, and fine-tuning bonuses. Accrual basis business can take a 2015 deduction for some bonuses not paid till 2016.An accrual basis business can take a deduction for its current tax year for a bonus not actually paid to its employee until the following tax year if: (1) the employee doesn't own mor...
November 19, 2015 1:20 pm
Published by Mark
Some individuals with substantial income in addition to salaries may find that the amount of tax withheld from their salaries isn't enough to cover their required estimated tax payments. This may be the result of, for example, miscalculations or unusual sources of income—for example, a windfall on the sale of a capital asset earlier in the year, or unexpected exposure to the 3.8% surtax An individual subject to the estimated tax must pay, on each of four installment dates (April 15, June 15, and...
