President Obama on December 19 signed legislation that retroactively extends for one year the bulk of the temporary tax deductions, credits, and incentives that expired at the end of 2013. The Tax Increase Prevention Act of 2014 was approved on a bipartisan basis and its enactment marks the last significant action in the tax policy arena in the 113th Congress, which has now officially adjourned. The tax relief in the extenders package is short-lived: the retroactive renewal of more than 50 tempo...
January 6, 2015 8:00 am
Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this year (and, possibly, not until next year). These breaks include, for individuals: the option to deduct state and local sales and use taxes instead of state and local income taxes; the above-the-line...
November 13, 2014 8:00 am
• 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, and then buy back the same securities at least 31 days later.
November 13, 2014 8:00 am
• 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 for the first ownership year. • Although the business property expensing option is greatly reduced in 2014 (unless legislation changes this option for 2014), don't neglect to make expenditures that qualify for this option. For tax years beginning in 2014, the expensing limit is $25,000, and the investment-based r...
November 13, 2014 8:00 am
The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. Availability of premium credit for health insurance purchased on federal exchange. A credit is avail...
October 30, 2014 4:00 pm
Capital gain and loss basics. Long-term capital losses are used to offset long-term capital gains before they are used to offset short-term capital gains. Similarly, short-term capital losses must be used to offset short-term capital gains before they are used to offset long-term capital gains. Noncorporate taxpayers may use up to $3,000 of total capital losses in excess of total capital gains as a deduction against ordinary income in computing adjusted gross income (AGI).
October 30, 2014 4:00 pm
2014 2015 Increase Limit on employee contributions to 401k, 403b, or 457 plan $17,500 $18,000 $500 Limit on age 50+ catchup contributions to 401k, 403b, or 457 plan $5,500 $6,000 $500 Traditional and Roth IRA contribution limit $5,500 $5,500 None Traditional and Roth IRA age 50+ catchup contribution limit $1,000 $1,000 None SIMPLE 401k or SIMPLE IRA contributions limit $12,000 $12,500 $500 SIMPLE 401k or SIMPLE IRA age 50+ catchup contributions limit $2,500 $3,000 $500 Maximum annual additions t...
October 30, 2014 4:00 pm
Background On September 13, 2013, the Department of the Treasury and the IRS issued final tangible property regulations that provide guidance on the tax treatment of amounts paid to improve, acquire and produce tangible property. The regulations are considered effective for tax years beginning on or after January 1, 2014, however taxpayers may consider early adoption of the final regulations for tax years beginning on or after January 1, 2012. The final regulations retain many of the provisions ...
October 30, 2014 4:00 pm
Under the Affordable Care Act, the Federal government, State governments, insurers, employers, and individuals share the responsibility for health insurance coverage beginning in 2014. Many people already have qualifying health insurance coverage (called minimum essential coverage) and does not need to do anything more than maintain that coverage. The individual shared responsibility provision requires you and each member of your family to either: Have minimum essential coverage, or Have an exem...
October 30, 2014 4:00 pm
More than 1,000 American taxpayers have collectively lost about $5 million as a result of a recent phone scam that has been reported to be active in virtually every corner of the nation. The Internal Revenue Service (IRS) reminds everybody to be vigilant, to never give personal financial information to anybody over the phone, and to report instances of phone scams to the IRS and/or to the Treasury Inspector General for Tax Administration (TIGTA). A taxpayer first contact with the IRS will not be...
October 30, 2014 4:00 pm
