How to “bunch” medical expenses into 2015
October 6, 2015 Knowledge Center
How to “bunch” medical expenses into 2015

Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but generally only to the extent that they exceed 10% of your adjusted gross income. Taxpayers age 65 and older can enjoy a 7.5% floor through 2016. The […]

Maximize your business vehicle-related deductions by selling rather than trading
September 29, 2015 Knowledge Center
Maximize your business vehicle-related deductions by selling rather than trading

Although a vehicle’s value typically drops fairly rapidly, the tax rules limit the amount of annual depreciation that can be claimed on most cars and light trucks. Thus, when it’s time to replace a vehicle used in business, it’s not unusual for its tax basis to be higher than its value. If you trade a […]

Benefits for contributing more to your 401(k) in 2015
September 22, 2015 Knowledge Center
Benefits for contributing more to your 401(k) in 2015

Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, offers many benefits: Contributions are pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the 3.8% net investment income tax. Plan assets can grow tax-deferred — meaning you pay no […]

Excise tax on employers for failure to meet group health plan requirements
September 16, 2015 Knowledge Center
Excise tax on employers for failure to meet group health plan requirements

As you are aware, an excise tax is imposed on employers for any failure of their group health plans to meet group health plan requirements with respect to: portability, access, and renewability requirements; benefits for mothers and newborns; mental health benefits; dependent students on medically necessary leave of absence; and the Affordable Care Act (ACA) (e.g., […]

Worried about estate taxes? Here’s a simple way to project your tax exposure
September 15, 2015 Knowledge Center
Worried about estate taxes? Here’s a simple way to project your tax exposure

Here’s a simplified way to project your estate tax exposure. Take the value of your estate, net of any debts. Also subtract any assets that will pass to charity on your death. Then, if you’re married and your spouse is a U.S. citizen, subtract any assets you’ll pass to him or her. Those assets qualify […]

Check Tax-Exempt Status
September 15, 2015 Knowledge Center
Check Tax-Exempt Status

A tax exempt organization may need a letter to confirm its tax-exempt status or to reflect a change in its name or address.  If so, an organization may generally contact Customer Account Services by phone, letter, or fax to request an affirmation letter. A letter or fax requesting an affirmation letter must include your organization’s […]

When will Congress pass “extenders” legislation to revive expired tax breaks for 2015?
September 8, 2015 Knowledge Center
When will Congress pass “extenders” legislation to revive expired tax breaks for 2015?

With Congress returning from its August recess, this is the question on tax-savvy Americans’ minds. Many valuable tax breaks aren’t permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute to do so. For example, Congress didn’t pass 2014 extenders until December 2014, […]

ASU 2015-12
September 8, 2015 Knowledge Center
ASU 2015-12

The Financial Accounting Standards Board (FASB) recently issued ASU 2015-12 Plan Accounting:  Topic 960, Defined Benefit Pension Plans; Topic 962, Defined Contribution Pension Plans; Topic 965, Health and Welfare Benefit Plans.  The guidance consists of three parts: Part I designates contract value as the only required measure for fully benefit-responsive investment contracts.  An adjustment to […]

ASU 2015-07
September 2, 2015 Knowledge Center
ASU 2015-07

The Financial Accounting Standards Board (FASB) recently issued ASU 2015-07 Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Entities measuring investments at net asset value per share (NAV) as a practical expedient are no longer required to categorize such investments within the fair value hierarchy. The investments […]

All income investments aren’t alike when it comes to taxes
September 1, 2015 Knowledge Center
All income investments aren’t alike when it comes to taxes

The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15% or 20%) rather than at the applicable ordinary-income tax rate (which might be as high as 39.6%). Interest […]

IC-DISC can help slash your tax bill
August 25, 2015 Knowledge Center
IC-DISC can help slash your tax bill

If your business exports American-made goods or performs architectural or engineering services for foreign construction projects, an interest-charge domestic international sales corporation (IC-DISC) can help slash your tax bill. An IC-DISC is a “paper” corporation you set up to receive commissions on export sales, up to the greater of 50% of net income or 4% […]

Have you considered donating collectibles? Here’s what you need to know.
August 18, 2015 Knowledge Center
Have you considered donating collectibles? Here’s what you need to know.

If you’re a collector, donating from your collection instead of your bank account or investment portfolio can be tax-smart. When you donate appreciated property rather than selling it, you avoid the capital gains tax you would have incurred on a sale. And long-term gains on collectibles are subject to a higher maximum rate (28%) than […]