2016 Business Tax Planning: 10 Moves Before Closing Your Year!

John (Rusty) Davis, CPA

1. DOL New Overtime Rule: Understand It Fully! Effective 12/1/16, the annual salary threshold increases from $23,660 to $ 47,476 for “white collar” exemptions. Be sure to evaluate your employment policies thoroughly to comply. Details here: https://www.dol.gov/WHD/overtime/final2016/  2. Employer ACA Information Reporting:  Confirm Responsibility! The IRS has announced extended due dates and penalty relief for 2016 information reporting mandated by the Affordable Care Act (ACA). The ACA requires detailed information reporting for insurers, self-insured employers, certain other providers of minimum essential coverage under IRC Sec. 6055, as well as employers with 50 or more full-time employees. Employers will now have…

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2016 Individual Tax Planning: 10 Keys to Tax Savings!

John (Rusty) Davis, CPA

 1. ID Theft Safeguards in Tax Filings: Security is #1! Before you do anything, get current on IRS security processes, and review all personal and business processes to ensure that your data is as secure as possible. More here: https://www.irs.gov/uac/taxpayer-guide-to-identity-theft 2. Balance Tax Brackets for 2016 and 2017: Shift Between Years? Taxable Income Postpone income until 2017 and accelerate deductions into 2016 to lower your 2016 tax bill. This strategy may enable you to claim larger deductions, credits, and other tax breaks for 2016 that are phased out over varying levels of adjusted gross income (AGI). These include child tax…

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2015 Year-End Tax Planning for Businesses – 12 Keys Before Closing The Year

John (Rusty) Davis, CPA

IRC 179 Expensing Deduction for Asset Purchases Unless Congress changes the rules, for qualified property placed in service in tax years beginning in 2015, the maximum amount that may be expensed under the limitation is $25,000, and the beginning-of-phase-out amount is $200,000 In earlier years, the dollar limit was $500,000 and the beginning-of-phase-out amount was $2 million. However, despite what Congress does (or doesn’t do) to adjust the IRC 179  limits for 2015, some businesses may be able to buy much-needed machinery and equipment at year-end and currently deduct the cost under a “de minimis” safe harbor election in the capitalization…

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2015 Year-End Tax Planning for Individuals – 12 Keys to Tax Minimization

John (Rusty) Davis, CPA

Manage Investment Portfolio Gains and Losses 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. It may be advisable for us to meet to discuss year-end trades you should consider making. Capital gains and losses present excellent opportunities for deferral because you have nearly complete control over when you sell them, but be careful when harvesting losses. You generally cannot use capital losses against other kinds of income, and if you…

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