Rochester NY CPA - Gray CPA Certified Public Accountants - Tax Planning, Asset Management and Litigation Support
email: info@graycpa.com - telephone: 585-270-5303   

Gray CPA Newsletters

I cant change the direction of the wind, but I can adjust my sails to always reach my destination. Jimmy Dean (1928 - 2010)

Hello All,

The time is upon us again to do some year-end tax planning. Although little has been going on in the arena of tax legislation in 2014, there are always ways to reduce your tax liability. Deferring tax is the cornerstone to tax planning. Here are a few ideas:

Accelerate Deductions: You may be able to accelerate certain deductions from 2015 into 2014 by making payments prior to year-end for state income taxes, real estate taxes, mortgage interest, student loan interest, and charitable contributions.

Accounting News

Health Savings Account: Taxpayers with high-deductible health plans who are not covered by any other health insurance or enrolled in Medicare may deduct contributions to a health savings account. The distributions, including income earned on the account, are tax-free as well if they are used for qualifying expenses.

Retirement Contributions: Contributions to retirement accounts also offer tax savings now. The 2014 contribution limits are $17,500 for a 401(k) or 403(b) account, and $5,500 for an IRA (not including catch-up contributions for those 50 years of age and older).

Charitable Contributions: It is during the holidays that most people feel the greatest urge to donate. Year-end gifts to charity are always an excellent way to drive down your tax liability. Make a cash donation, donate some appreciated securities (like stocks), or clean out your closet. Be sure you ask for a receipt from the charity recording your donation.

Defer Income: Consider deferring bonuses, consulting income or self-employment income, or capital gains into 2015. Note, if you have capital losses in 2014, you can deduct up to $3,000 and carry any excess to deduct in future years. If you hold losses in your portfolio, sell them to get your deduction. Remember, you cant buy them back for 30 days or you will forfeit your loss deduction.

Make Gifts: You can give up to $14,000 to as many people as you wish in 2014, free from estate or gift taxes. If you combine this annual gift tax exclusion with your spouse, you can give up to $28,000 per beneficiary for the year. This is an excellent estate planning tool to shift money tax-free to children and grandchildren.

Year-End Tax Projections: If you have any circumstances out of the ordinary for you this year that may have tax implications, please contact us so we can discuss them with you. We would do a projection of your taxable income to determine if there is a need for fourth quarter estimated tax payments, or an adjustment to ones previously calculated.

Did you receive a check from New York State? This fall New York State mailed checks to many taxpayers for two new credits. The Property Tax Freeze Credit is a two-year relief program that reimburses qualifying New York State homeowners for increases in local property taxes on their primary residence. To receive the credit, homeowners must receive the STAR exemption on a property that is their primary residence, have total household income of $500,000 or less, and live in a school district that complies with the New York State Property Tax Cap. The credit was a percentage of 2013 school taxes paid. The Family Tax Relief Credit is a $350 payment to certain middle-income New Yorkers. Eligible taxpayers were those who reported the following on their 2012 personal income tax return: resident of New York for the entire year, claimed at least one child under age 17 as a dependent, had NYS adjusted gross income between $40,000 and $300,000, and had a NYS tax liability.

Thank you for your loyalty and another successful year. May you enjoy your holidays surrounded by friends and family.

Gray CPA

Unless otherwise stated, any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, not a substitute for a formal opinion, nor is sufficient to avoid tax-related penalties.

Friday, October 20, 2017
Home | About Us | Services | News | Newsletters | Contact Us
Website Maintenance and Hosting - IB Design Studios