Is your charitable donation eligible for a tax deduction?
But before you donate, it’s critical to make sure the charity you’re considering is eligible to receive tax-deductible contributions
News & Tech Tips
Don’t miss your opportunity to make 2015 annual exclusion gifts
Annual exclusion gifts offer a valuable tax-saving opportunity!
Prevent Year-End Vacation Scramble with PTO Contributions
if you limit how many vacation days employees can roll over to the new year, you might find your workplace to be nearly a ghost town as employees scramble to use their time off rather than lose it.
Save tax (or at least defer it) by carefully timing business income and expenses
The first step to smart timing is to project your business’s income and expenses for 2015 and 2016. With this information in hand, you can determine the best year-end strategy for timing business income and expenses.
If you expect to be in the same or lower tax bracket in 2016, consider:
Deferring income to 2016. If your business uses the cash method of accounting, you can defer billing for your products or services. Or, if you use the accrual method, you can delay shipping products or delivering services.
Accelerating deductible expenses into 2015. If you’re a cash-basis taxpayer, you may make a state estimated tax payment before December 31, so you can deduct it this year rather than next. Both cash- and accrual-basis taxpayers can charge expenses on a credit card and deduct them in the year charged, regardless of when the credit card bill is paid.
If you expect to be in a higher tax bracket in 2016, accelerating income and deferring deductible expenses may save you more tax over the two-year period (though it will increase your 2015 tax liability).
For help projecting your income and expenses or for more ideas on how you can effectively time them, please contact us.
Copyright 2015 Thomson Reuters
Image courtesy of Stuart Miles at freedigitalphotos.net
CLIENT ALERT: Proposed Tax Extender Bill Includes Section 179 Deduction, Bonus Depreciation
Earlier this week, U.S. House Ways and Means Committee Chairman, Congressman Kevin Brady, proposed legislation to renew numerous tax provisions for 2015 and 2016. The proposed bill includes maintaining tax provisions for Section 179 Deduction expensing and accelerated depreciation (bonus depreciation). The full list of tax provisions included in the bill can be seen here.
Congressman Brady is reported as saying that this bill is intended as a backup to extend tax provisions in the event that a larger deal cannot be brokered in congress.
The legislation is currently being considered by congress; Whalen & Company, CPAs will notify our clients as this bill progresses.
More Information: