Rochester NY CPA - Gray CPA Certified Public Accountants - Tax Planning, Asset Management and Litigation Support
email: - telephone: 585-341-4111   

Gray CPA Newsletters

“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” – Socrates (469 – 399 BC)

Season’s Greetings!

Donald Trump’s election as the 45th President of the United States on November 8 is expected to bring change to the tax laws for individuals and businesses. Although we will not know what those changes will be until after his term in underway, tax planning for 2016 must still be done.

First, what’s not changing… At least for 2016, the individual income tax rates remain the same. This could mean that potentially lower tax rates next year pose a tax saving advantage to deferring income until 2017. Consider deferring a year-end bonus until January, waiting to cash in a savings bond, deferring debt forgiveness income, etc. Some of these deferrals may make sense anyway if Adjusted Gross Income has you phased-out of certain tax incentives in 2016.

Accounting News

A number of individual tax incentives are now permanent… the American Opportunity Education Tax Credit, the teachers’ $250 classroom expense deduction, the ability to deduct state and local sales tax as an itemized deduction instead of state income tax, the exclusion for direct charitable donation of up to $100,000 from an IRA. If you believe you may qualify for any of these tax savings opportunities, call us now or bring them to our attention when you send in your tax data.

Fail-safe tax savings ideas… 1 - Maxing out your annual retirement account contributions is always advisable, especially if your employer has a matching program. This includes maximizing your 401(k) or 403(b) annual withholdings. It is not too late to catch up for 2016 if you are under the $18,000 limit (plus $6,000 more if you are age 50 or older). 2 - If you have capital gains, look for losers to harvest to offset those gains. 3 - Make year-end charitable donations. Even if you may be phased-out of a deduction in one year, the contributions carry over, providing a potential benefit in another. 4 – Prepay deductions, like state income tax and business expenses. 5 – Parents and grandparents can make contributions of up to $14,000 to a “Section 529” education savings account. Income on the account is tax-exempt if used for qualified education costs and New York provides a $10,000 maximum tax deduction for a couple, $5,000 for single taxpayer.

December 31 is fast approaching. It’s time to do your tax planning now.

Tax return due dates… Beginning with 2016, calendar year partnership returns now have a filing deadline of March 15. This has a dual meaning. The first, if we prepare a partnership tax return for you, the timing that we require you to submit your financial data may be accelerated. Secondly, if you are a partner in a partnership, you should expect to receive Schedule K-1 by March 15, or receive notification that the partnership tax returns have been extended. Please pass along all information to us as soon as it is available.

The federal tax deadline for 2016 individual income tax returns is Tuesday, April 18, 2017.

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.

Tuesday, May 26, 2020
Home | About Us | Services | News | Newsletters | Contact Us
Website Maintenance and Hosting - IB Design Studios