Jack’s 8 Tax Tips
Tax Preparation Service and Jack’s 8 Tax Tips!
During this time of the year, we often experience more jingle going out of our pockets than going in. Below are some tax tips you can use to help replenish some of that jingle back into your pocket in 2017!
You can also listen to these tax tips over the next few weeks on WAKY between 3-6PM.
Just Call Jack Tip #1:
-Get yourself a supercharge tax benefit by donating appreciated stock or property held over one year. You can deduct FMV of the donation and pay no capital gain on its appreciation.
Just Call Jack Tip #2:
-For seasoned individuals over the age of 70 1/2 , who have traditional IRA’s and SEP’s, make sure you take out the required minimum distribution amounts or face a punitive 50% penalty on the amount not taken. Check with your trustee for more details
Just Call Jack Tip #3:
-For non-business owners, try to accelerate your deductions from 2017 into 2016 by donating appreciated stock or property to charities, prepaying real estate taxes and paying of state and local taxes before December 31.
Just Call Jack Tip #4:
-If you have a ROTH, IRA, there are no required minimum distribution rules for you to worry about. However, if you inherited a ROTH IRA you are subject to the required minimum distribution rules at age 70 ½.
Just Call Jack Tip #5:
-If you are self-employed, the retirement plan of choice is the Keogh plan. These plans must be established by Dec 31 of each year, but contributions to the plan may still be made until the tax filing deadline. For non-business owners, the traditional IRA may be set up and funded until the tax filing deadline.
Just Call Jack Tip #6:
-Check on your cafeteria or “flex plan” benefit balance at work. Those plans usually have a “use it or lose it” rule. Recently, the IRS has initiated a grace period for some employers to allow their employees to spend 2016 set aside money as late as March 15, 2017. But check this out carefully with your company’s benefits department. Don’t rely on small talk around the water cooler!
Just Call Jack Tip #7:
-If the company you work for has a 401(k) plan, I strongly suggest that you start making a minimal contribution to it at least the amount that will be matched by the employer. This match is a 100% return on the money you contributed and I am aware of no other investment vehicle, a similar risk level, that can yield you such a wonderful Return.
Just Call Jack Tip #8:
-Legal methods deferring income to 2017, such as delaying bonuses, or waiting to send out your invoices until late December are accepted tax strategies. Also, accelerating expenses such as: paying real estate taxes and various business expenses. Expenses can be charged on a credit card and deducted in the year charged, even if the credit card bill is not paid until 2017.
Questions? Need a Tax Preparation Service? …. Just Call Jack!