2013 Tax Checklist
Check out our 2013 Tax Newsletter to find out about some interesting changes in taxes this year.
Also, to make sure you don’t forget anything on your taxes, take a look at our handy tax checklist below!
Tag Archive for: Tax Planning
Get Financially Fit!
It's time to get that piggy bank in shape!
You can’t make real money unless you are financially fit, so drop those dumbbells, grab your pen and paper, and join H&S Companies Partners Ward VanDam, Mike Farmer, and Randy Filbrandt at the Muskegon Lakeshore Chamber of Commerce March Business Briefing.
Randy will show you how to put together a financially fit plan to get you on track (and you don’t even have to roll out of bed at 5 am)! Need a little motivation? Muskegon Brake & Tires, REMAX, and The Fish Monger’s Wife will share case studies.
Plus, Ward VanDam will share a brief tax update (with all of the recent tax changes, you won’t want to miss it), and Mike Farmer will share a small business accounting update.
Don’t wait! Pre-Register now. Space is filling up fast.
Event Details
- Tuesday, March 12, 2013
- 8:00 – 9:30 a.m.
- Muskegon Lakeshore Chamber of Commerce
Download the Business Briefing flyer for more information and for the pre-registration form.
Year-End Tax Planning | C-Corp Income – Accelerate or Defer?
The Economic Growth and Tax Relief Reconciliation Act (EGTRAA) of 2001 is scheduled to sunset at the end of the year. The uncertainty over the EGTRRA sunset and how it will affect 2013 tax rates makes tax planning difficult for individuals. C-Corporations, however, should keep in mind that they need to decide whether to accelerate or defer their income as EGTRRA sunsets will not affect corporate rates. There are no significant proposals to raise corporate tax rates, yet.
With so much uncertainty, it may be advisable to accelerate deductions or defer income to another year if it will put you in a more favorable tax bracket.
To learn more contact an H&S tax professional today.
Year-End Tax Planning | C-Corp Income – Accelerate or Defer?
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The Economic Growth and Tax Relief Reconciliation Act (EGTRAA) of 2001 is scheduled to sunset at the end of the year. The uncertainty over the EGTRRA sunset and how it will affect 2013 tax rates makes tax planning difficult for individuals. C-Corporations, however, should keep in mind that they need to decide whether to accelerate or defer their income as EGTRRA sunsets will not affect corporate rates. There are no significant proposals to raise corporate tax rates, yet.
With so much uncertainty, it may be advisable to accelerate deductions or defer income to another year if it will put you in a more favorable tax bracket.
To learn more contact an H&S tax professional today.
Is Now the Time to Sell High-Value Items? | Tax Planning Strategies
The capital gains tax is set to sunset at the end of the year.
According to an article on the AOL Real Estate blog, some luxury homeowners are looking to sell their high-end properties before the end of 2012. They’re scrambling to get their properties to market because the Bush-era capital gains tax cuts are scheduled to sunset at the end of the year, which could lead to a significant increase in the tax if Congress doesn’t act.
This article reminds us that now is a good time in the year to review your financial portfolio and think about tax planning strategies for the future. It might be a good idea to sell stocks or other high-value items at the current 15% capital gains tax rate, rather than waiting and being subject to a potential costly increase.
To learn more about homeowners selling their properties read, An End to Bush-Era Tax Cuts Could Push High-End Properties Onto Market
For more information contact Sally Steffes
Sally Steffes
Certified Public Accountant
616.735.3035
sallys@hscompanies.com
Is Now the Time to Sell High-Value Items? | Tax Planning Strategies
The capital gains tax is set to sunset at the end of the year.
According to an article on the AOL Real Estate blog, some luxury homeowners are looking to sell their high-end properties before the end of 2012. They’re scrambling to get their properties to market because the Bush-era capital gains tax cuts are scheduled to sunset at the end of the year, which could lead to a significant increase in the tax if Congress doesn’t act.
This article reminds us that now is a good time in the year to review your financial portfolio and think about tax planning strategies for the future. It might be a good idea to sell stocks or other high-value items at the current 15% capital gains tax rate, rather than waiting and being subject to a potential costly increase.
To learn more about homeowners selling their properties read, An End to Bush-Era Tax Cuts Could Push High-End Properties Onto Market
For more information contact Sally Steffes
Sally Steffes
Certified Public Accountant
616.735.3035
sallys@hscompanies.com
Tax Planning 2012: Strategies to Maximize Returns
By: RIA Content
Year-end tax planning is especially challenging this year because of uncertainty over whether Congress will enact sweeping tax reform that could have a major impact in 2012 and beyond. Even if there is no major tax legislation in the immediate future, Congress will eventually need to address several lingering issues such as whether to once again “patch” the alternative minimum tax, and what to do about the expiration of favorable estate and gift rules for estates of decedents dying, gifts made, or generation-skipping transfers made after December 31, 2012.
Until a decision is made on these and several other issues, your tax planning strategy needs to help you maximize your returns based upon the current laws. There are several viable options depending upon your financial situation.
One option that may be available to you is to realize losses on stock while substantially preserving your investment position. This can be done by selling the original holding, then buying back the same securities at least 31 days later. Alternatively, deferring capital losses into the future could be more beneficial as the losses could offset future higher-taxed income (assuming capital gain rates increase as most assume they will).
You may also want to consider accelerating long-term capital gains to lock in today’s lower capital gain rates (because, again, most experts assume capital gain rates wil climb). You can sell substantially appreciated investments in 2011 and immediately repurchase them at today’s higher cost basis. this locks in the current capital gains rate and reduces the amount to be taxed later.
By postponing income until 2012 and accelerating deductions into 2011 you may be able to claim larger deductions, credits, and other tax breaks for 2011 that are phased out over varying levels of adjusted gross income.
Another option you may want to consider is converting your traditional IRA into a Roth IRA. While this is not a current tax savings technique, as you will increase your 2011 income, a conversion to a Roth IRA will save taxes in the future as your initial investment and earnings come out tax free.
Additionally, if you expect to owe state and local income taxes when you file your return next year, consider asking your employer to increase withholding of state and local taxes (or pay estimated tax payments of state and local taxes) before year-end in order to deduct those taxes in 2011.
Also, if you become eligible to make health savings account contributions in December of this year, you can make a full year’s worth of deductible HSA contributions for 2012.
These are just a few tax-planning techniques; there are several options available. Tax law in complicated and a mistake could cost you a lot of money down the road. Contact your H&S advisor today to develop a strategy that will help maximize your returns this year and in the future.
For additional information, please contact your H&S Tax Advisor at 800-924-6891.
