Benefits to Accelerated Expensing of Assets

by | Sep 2, 2016 | Tax Planning

First Year Bonus Depreciation The bonus depreciation expense for property acquired and placed in service during 2016 has been extended through 2019. The amount of deprecation is 50 percent for cost of property placed in service during the year, in addition to regular...

Foreign Income Exclusion

by | Jun 15, 2016 | Tax Planning

Foreign Earned Income Exclusion, IRS Form 2555 If you are subject to the US taxes (U.S. citizen or a US resident alien) and live overseas, you are taxed on your worldwide income (the US and Eritrea are the only two countries with such tax law). However, if you...

Larger Deductions for Business Owners

by | May 15, 2016 | Tax Planning

Simplified Employee Pension Plan (SEP-­IRA)  IRC § § 402(h) and 415 limit the amount of contributions made to an employee’s SEP-­IRA to the lesser or $53,000 or 25% of the eligible employee’s compensation. 401(K) Limit The 2016 maximum employee contribution is $18,000...

Charity Tax Breaks If You’re Over 70.5 Years

by | May 1, 2016 | Tax Planning

Direct Charitable Distribution From IRAs Taxpayers over 70 ½ years old can now make $100,000 per year direct tax ­free distributions from their IRAs to their choice of qualified charitable organizations, regardless of their Adjusted Gross Income (AGI). These transfers...

Timing Is Helpful When Selling Investments

by | Jan 15, 2016 | Tax Planning

Capital Gains Tax   Capital Gains and Dividends tax rates increased from 15% to 20% for taxpayers with taxable income in excess of the thresholds mentioned above ($400,000 for single filing status, etc). Net capital gains from selling collectibles such as coins...

Timing The Sale On Lossing Stocks

by | Jan 1, 2016 | Tax Planning

Timing The Sale On Lossing Stocks       Wash Sale Rule   Under the “wash sale” rule that applies to the disposition of an asset when a loss is recognized,the IRS doesn’t permit taxpayers deduct the loss if they repurchase the same or identical investment during...