Fall is in the air and before you know it the Holiday season will be here.
Hope you had a nice Halloween with friends, family and look forward to Thanksgiving. A special time of the year to cherish what is important to you.
To help you with this stressful time of the year, I have listed some action steps for you to take now that will not only save you time but money and peace of mind.
Please contact this office if you need to come in for some personal service and advice. We are here year-round to give our frank and sage direction.
- We will again this year be sending you a tax organizer over the internet but can send you a hard copy if you like. Please let us know what you prefer.
- Make sure you pay all of your estimated tax payments we have you scheduled you for on a timely basis. Each year the government makes a lot of money on penalties for late filings, late estimated tax payments or underpaying before the due date which is April 15th. An extension, if necessary, only buys you time to file, not pay. They will send you a tax payment notice if you don’t. Penalties can be steep.
- Deferring income and accelerating expenses is still solid advice. If you can afford to make that extra property tax or state income tax payment before December 31st, then do it.
- Remember to contribute as much as you can to your retirement plan whether it is through your work as an employee, or if self-employed to your SEP or IRA.
- Start summarizing your unreimbursed business expenses. If you used your car for business purposes, keep track of your business miles and your expenses. You can deduct either your actual expenses or $0.54 per business mile in 2016.
- New vehicle purchases for SUV or trucks over 6,000 pounds allows you to not only take a Section 179 write-off of up to $25,000 but also accelerated depreciation if purchased before December 31st. A $60,000 purchase could result in a $49,000 write off. Section 179 write-offs, if you own a business, are limited this year to $500,000.
- Long Term Care Insurance (LTC) remains one of the most tax-advantaged planning solutions available. Not only are the benefits paid tax-free (IRC 7702b), but the policyholder may deduct some or all of their premium. The IRS has announced that policyholders can deduct more of their premiums in 2017 than in 2016. Please speak to me if you would like to purchase Long Term Care Insurance. This is a service we provide. The government will not be paying for your care if you need it unless you are poor and qualify for Medi-Cal.
- An often overlooked deduction on your tax returns is charity. Keep receipts and estimate the Fair Market Value (FMV) of what you give to charities. Remember that any donation over $5,000 requires an appraisal certification with the tax return. You can deduct up to 50% of your adjusted gross income. This is a great social policy.
- Make sure we have all your documents before you make an appointment with us. Request a copy of your tax return for review to make sure it is accurate before we e-file it for you.
- If you sold securities during the year, make sure we have the proper cost basis for the sales. If you sold your home or investment property, please bring in your escrow documents. Keep track of what you pay for assets.
- Applying for and receiving social security once you reach retirement age (or earlier if 62) is a very important decision. We have the ability to help you reach the right decision on this supplemental retirement benefit.
NOTE: I have changed my accounting and tax e-mail address to email@example.com
Please change your email appointment book or files to this new address.
Phone number and website are still the same.
All the best,
Certified Financial Planner™, CFP®
Chuck Anderson C.P.A, Inc.
Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member of FINRA/SIPC. Office of Supervisory Jurisdiction 848 Manhattan Beach Blvd., Manhattan Beach, CA 90266. Professional Business Services and IFG are not affiliated. For security-related issues email: firstname.lastname@example.org