Each tax return requires individual attention and a combination of different tax strategies that apply to the given situation. The best way to save taxes is to take a proactive approach during the year. Consult your accountant when making any financial decisions and preparing a projection before year end to determine any last minute steps you can take to maximize your tax savings.
Business owners and their companies can apply a vast array of strategies. Many of the elections made at the entity level will have a significant impact not only on the company’s tax burden, but also on the tax burden of individual shareholders and partners. An example is using a strategy such as Section 179 which expenses the cost of some assets, as opposed to depreciating them over time.
For high net-worth individuals, tax planning requires a proactive approach to obtain the best results. Economic and legislative changes are uncertain as it pertains to the tax code and any expiring benefits. There is no certainty 2015 will see the same extenders 2014 did and there are many steps you can take now to protect you and your businesses assets. In taking this approach, the decisions you make now should be instrumental in preserving your wealth – not just for your own future, but for that of the next generation as well.
For high net-worth individuals, tax planning requires a proactive approach to obtain the best results. Economic and legislative changes are uncertain as it pertains to the tax code and any expiring benefits. There is no certainty 2015 will see the same extenders 2014 did and there are many steps you can take now to protect you and your businesses assets. In taking this approach, the decisions you make now should be instrumental in preserving your wealth – not just for your own future, but for that of the next generation as well.
Each year the IRS releases its Dirty Dozen list of tax scams. Though the entire list has 12 scams on it, we want to highlight the three most common that our clients are facing.
Identity Theft
Tax season officially kicked off January 20, 2015, as scheduled, even with late tax extender law passage on December 19, and cuts in IRS funding. Those filing paper returns this year, however, will have their refunds delayed an additional week or longer due to the cuts in funding. We are also told the wait times if you call the IRS are expected to be much longer this tax season. This is the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered, according to IRS Commissioner John Koskinen.
While both the President and Congress agree action is needed on corporate tax reform, the two seem far apart on how to bring changes about. The sides seem closer to an agreement to change business taxation rules, but it hard to do that without addressing individual taxation, or disadvantaging sole proprietorships, and pass through entities like LLCs, S-corporations and partnerships. One plan would create a special tax rate for business income of individuals similar to how there are separate rates for dividends and capital gains. The goal is to equalize the top rate f
For those that may have missed it, the President signed into law a “tax extender” bill in December that extended a number of existing tax benefits and credits that would have otherwise expired as of 12/31/13. The law extended them only through the 2014 tax year. For the 2015 filing year most of these extenders will probably be eliminated.
Some of the extensions that were restored which may benefit you include:
The 2014 tax year brings a major change in the requirements for your individual 1040 tax return. Due to the Affordable Care Act (ACA) your return now also reports your health insurance status for each month of the year for each person included on your tax return.
In December 2014, Congress passed a tax extender bill that was then signed by the President, which extended tax write-off provisions for tax filing year 2014. Previous to this Bill, these provisions were scheduled to expire on 12/31/13.
Some of the extensions that were restored which may benefit you include:
