November 2016 Newsletter

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November 2016 Newsletter [PDF]

• More Certainty for Year-End Tax Planning
  Recently, year-end tax planning has been challenging. Many tax code provisions expired, and it was uncertain whether they would be renewed, with Congress’ action potentially not coming until extremely late in the year. The Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law late last year, not only renewing some expired benefits but making them permanent. Learn more in this month’s newsletter.
• Year-End Planning for Itemized Deductions
  Learn the standard deductions for single taxpayers, married filing jointly, heads of household and those over age 65, and how to plan your tax return accordingly for 2016.
• Year-End Tax Planning for Deducting Taxes Paid
  The new PATH law makes the sales tax deduction permanent. Keep in mind that you deduct sales tax instead of state and any local income tax. You can’t deduct both sales and income taxes. Learn more in this month’s newsletter.
• Year-End Planning for Charitable Donations
  The PATH Act exempts certain IRA-to-charity transfers from income tax. For most people, moving money from an IRA to a charity is a taxable withdrawal, subject to income tax. However, once you reach age 70½, such transactions may be untaxed as a Qualified Charitable Distribution (QCD).
• Year-End Planning for Medical Deductions
  The PATH Act of 2015 is not the only recent tax law affecting year-end planning this year. One provision of the Affordable Care Act comes into play now. For taxpayers age 65 or older, it may pay to incur optional medical expenses by December 31, 2016.
• Year-End Retirement Tax Planning
  Many people save money for retirement in a traditional IRA. The funds might have come from annual IRA contributions, or from rolling over an employer sponsored retirement account such as a 401(k). Either way, the dollars in your traditional IRA are probably pretax, so they’ll be taxed on withdrawal.
• Year-End Business Tax Planning
  The PATH Act’s many provisions also include a permanent increase in the amounts allowed under IRC Section 179, which permits rapid deduction (expensing) of funds spent for business equipment. Learn more in our November Newsletter.
• October, 2016 Tax Calendar
  Use our handy Tax Calendar for important dates and reminders.