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Adam’s Tax Accounting Service Blog

Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.

7 Last-Minute Tax-Saving Tips

Posted by on Dec 7, 2017 in Blog, General, Management, Tax Tips | 0 comments

7 Last-Minute Tax-Saving Tips

2017 is quickly drawing to a close, but there’s still time to take steps to reduce your tax liability for this year, but you just must act by December 31: Pay your 2017 property tax bill that’s due in early 2018. Make your January 1 mortgage payment. Incur deductible medical expenses (if your deductible medical expenses for the year already exceed the 10% of adjusted gross income floor). Pay tuition for academic periods that will begin in January, February or March of 2018 (if it will make you eligible for a tax credit on your 2017 return)....

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Even if Your Income is High, Your Family May Be Able to Benefit From the 0% Long-Term Capital Gains Rate

Posted by on Dec 4, 2017 in Blog, General, Management, Tax Tips | 0 comments

Even if Your Income is High, Your Family May Be Able to Benefit From the 0% Long-Term Capital Gains Rate

If making financial gifts to your loved ones is part of your plans this gift giving season — or if you’d simply like to reduce your capital gains tax — consider giving appreciated stock instead of cash this year. Doing this might allow you to eliminate all federal tax liability on the appreciation, or at least significantly reduce it. Leveraging lower rates Investors generally are subject to a 15% tax rate on their long-term capital gains (20% if they’re in the top ordinary income tax bracket of 39.6%). But the long-term capital gains rate is...

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Accrual-Basis Taxpayers: These Year-End Tips Could Save You Tax

Posted by on Nov 30, 2017 in Blog, General, Management, Tax Tips | 0 comments

Accrual-Basis Taxpayers: These Year-End Tips Could Save You Tax

Tax law changes could go into effect next year that would significantly reduce income tax rates for many businesses, making 2017 an especially good year to accelerate deductible expenses. Why? Deductions save more tax when rates are higher. Timing income and expenses can be a little more challenging for accrual-basis taxpayers than for cash-basis ones. But being an accrual-basis taxpayer offers valuable year-end tax planning opportunities when it comes to deductions. Tracking incurred expenses The key to saving tax as an accrual-basis...

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You May Need to Add RMDs to Your Year-End To-Do List

Posted by on Nov 27, 2017 in Blog, General, Management, Tax Tips | 0 comments

You May Need to Add RMDs to Your Year-End To-Do List

From shopping for gifts to donating to our favorite charities to making New Year’s Eve plans, most of us have a lot of things on our to-do lists this time of year. For taxpayers “of a certain age” with a tax-advantaged retirement account, as well as younger taxpayers who’ve inherited such an account, there may be one more thing that’s critical to check off the to-do list before year end: Take required minimum distributions (RMDs). A huge penalty After you reach age 70½, you generally must take annual RMDs from your: IRAs (except Roth IRAs),...

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Getting Around the $25 Deduction Limit for Business Gifts

Posted by on Nov 22, 2017 in Blog, General, Management, Tax Tips | 0 comments

Getting Around the $25 Deduction Limit for Business Gifts

This is the time of year when it’s common for businesses to make thank-you gifts to customers, clients, employees, and other business entities and associates. Unfortunately, the tax rules limit the deduction for business gifts to $25 per person per year, a limitation that has remained the same since it was added into law back in 1962. Fifty-five years later, the $25 limit is unrealistically small in many business gift-giving situations. Fortunately, there are a few exceptions. The exceptions Here’s a quick rundown of the major exceptions to...

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Reduce Your 2017 Tax Bill by Buying Business Assets

Posted by on Nov 20, 2017 in Blog, General, Management, Tax Tips | 0 comments

Reduce Your 2017 Tax Bill by Buying Business Assets

Two valuable depreciation-related tax breaks can potentially reduce your 2017 taxes if you acquire (and place in service) qualifying assets by the end of the tax year. Tax reform could enhance these breaks, so you’ll want to keep an eye on legislative developments as you plan your asset purchases. Section 179 expensing Sec. 179 expensing allows businesses to deduct up to 100% of the cost of qualifying assets (new or used) in Year 1 instead of depreciating the cost over a number of years. Sec. 179 can be used for fixed assets, such as...

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Why You May Want to Accelerate Your Property Tax Payment Into 2017

Posted by on Nov 16, 2017 in Blog, General, Management, Tax Tips | 0 comments

Why You May Want to Accelerate Your Property Tax Payment Into 2017

Accelerating deductible expenses, such as property tax on your home, into the current year typically is a good idea because it will defer tax, which usually is beneficial. Prepaying property tax may be especially beneficial this year, because proposed tax legislation might reduce or eliminate the benefit of the property tax deduction beginning in 2018. Proposed changes The initial version of the House tax bill would cap the property tax deduction for individuals at $10,000. The initial version of the Senate tax bill would completely eliminate...

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Could the AMT Boost Your 2017 Tax Bill?

Posted by on Nov 13, 2017 in Blog, General, Management, Tax Tips | 0 comments

Could the AMT Boost Your 2017 Tax Bill?

A fundamental tax planning strategy is to accelerate deductible expenses into the current year. This typically will defer (and in some cases permanently reduce) your taxes. But there are exceptions. One is if the additional deductions this year trigger the alternative minimum tax (AMT). Complicating matters for 2017 is the fact that tax legislation might be signed into law between now and year end that could affect year-end tax planning. For example, as released by the Ways and Means Committee of the U.S. House of Representatives on November...

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2017 Might Be Your Last Chance to Hire Veterans and Claim a Tax Credit

Posted by on Nov 9, 2017 in Blog, General, Management, Tax Tips | 0 comments

2017 Might Be Your Last Chance to Hire Veterans and Claim a Tax Credit

Veteran’s Day is November 11th, so it’s an especially good time to think about the sacrifices veterans have made for us and how we can support them. One way businesses can support veterans is to hire them. The Work Opportunity tax credit (WOTC) can help businesses do just that, but it may not be available for hires made after this year. As released by the Ways and Means Committee of the U.S. House of Representatives on November 2, the Tax Cuts and Jobs Act would eliminate the WOTC for hires after December 31, 2017. So you may want to consider...

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The Ins and Outs of Tax on “Income Investments”

Posted by on Nov 2, 2017 in Blog, General, Management, Tax Tips | 0 comments

The Ins and Outs of Tax on “Income Investments”

Many investors, especially those who are more risk-averse ones, hold much of their portfolios in “income investments.” These are investments that pay interest or dividends, with less emphasis on growth in value. But all income investments aren’t alike when it comes to taxes. So it’s important to be aware of the different tax treatments when managing your income investments. Varying tax treatment The tax treatment of investment income varies partly based on whether the income is in the form of dividends or interest. Qualified dividends are...

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