Ginnie Mae Funds for Your Retirement
Ginnie Mae securities might be considered the “safe option” for retirement investing. Yields are not enormous in today’s environment, but they may be relatively attractive. Typically, Ginnie Maes pay one to two percentage points of yield more than Treasuries. Why should supposedly safe Ginnie Maes pay more? Read more in this month’s newsletter.
Tax Credits Beat Tax Deductions
The promise of a deduction can affect decisions in many areas, including charitable contributions, home buying, and investing in rental property. However, tax deductions offer only partial relief because they reduce income, not the tax bill. The higher your income and tax bracket, the more you’ll benefit from a tax deduction. A tax credit, on the other hand, is a direct reduction of the tax you owe. Moreover, many tax credits have income limits and phaseouts, which effectively means they’re available to low- and middle-income taxpayers. Ask us about tax credits for earned income, education, children and dependents.
R&D Tax Credits for Small Companies
Just as individuals get a dollar-for-dollar tax savings from tax credits, the same is true for businesses that qualify for tax credits. The Protecting Americans from Tax Hikes (PATH) Act of 2015, passed in 2016, expanded the ability of small companies to use the research and development (R&D) tax credit. The R&D credit is based not on the total amount a business spends on R&D, but on increases in R&D spending. Not only is a tax credit better than a tax deduction, but R&D costs not covered by the credit may not be immediately deductible. The spending that counts for the R&D credit might be for in-house wages and supplies, as well as for outside contracts that are considered qualified research expenditures. Read the full article in this month’s newsletter.
Use our handy tax calendar for upcoming tax dates in September and October of 2017.
Stephen Merritt is a full-service accounting and cpa firm in Virginia Beach offering tax preparation and accounting services for small to medium-sized businesses and their families. Our accounting services and tax services include QuickBooks training; Financial Statements preparation; Compilations, Reviews and Audits; individual, corporate and payroll tax return preparation; and new business formation. Give us a call at 757-420-5778 today for more information, or email us now.