January 2016 Newsletter [PDF]
- Deducting Taxes Paid
Instead of taking standard deductions, you may want to take the time to itemize deductions which can be a tax saver. If your itemized deductions exceed the standard amounts, you’ll generally come out ahead by listing them on Schedule A of Form 1040. Indeed, the amount you can claim under “Taxes You Paid” may be enough to justify itemizing.
- Deducting IRA Contributions
The deadline for 2015 IRA contributions is April 18, 2016. Workers and their spouses who were under age 70½ at year-end 2015 can each contribute up to $5,500, or $6,500 for those 50 and older. For traditional IRAs, income limits don’t apply. Those named can make contributions of these amounts to a traditional IRA. Whether those contributions will be tax-deductible is another matter. In any case, investment earnings inside an IRA will be untaxed until money is withdrawn.
- Going Outside to Sell Your Company
For business owners who are seeking a successor, the right person might be obvious. a co-owner or partner, a buy-sell agreement can set the terms; if a younger family member is willing and able, you can decide on a way to transfer control. Otherwise, there may be a key employee who’s a logical candidate—or you might hire someone to take over eventually. In some cases, though, this type of “inside” succession plan won’t be possible or practical. You’ll have to go outside to find a buyer who will take your place or who will hire someone to run the company.
- January Tax Calendar
Use our Tax Calendar for important dates and reminders for January of 2016.