Tax Planning

Should You “Bunch” Medical Expenses Into 2015?

Yeo & Yeo CPAs & Business Consultants

Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but generally only to the extent that they exceed 10% of your adjusted gross income. Taxpayers age 65 and older can enjoy a 7.5% floor through 2016. Th...

Why You Should Contribute More to Your 401(k) in 2015

Yeo & Yeo CPAs & Business Consultants

Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, offers many benefits: Contributions are pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the 3.8% net investment income tax. P...

Stages of Michigan's Minimum Wage Rate Increase

Yeo & Yeo CPAs & Business Consultants

In 2014, Governor Snyder signed legislation increasing the Michigan minimum wage rate in stages. The first increase took effect on September 1, 2014, increasing the hourly minimum rate to $8.15 per hour. On January 1, 2016, the minimum wage increases to $8.50 an hour; On January 1, 2017, to $8.90 an hour; ...

Expired Tax Provisions: Will Relief Arrive in Time to Plan?

Yeo & Yeo CPAs & Business Consultants

The fate of 51 tax incentives is in the hands of our legislators in Washington. While some bills are pending in Congress, at this time none has gained enough traction to predict approval of extender legislation before December 31, 2015. Tax extenders are a broad set of temporary tax breaks that sunset every few years and require a new ...

Exporters and Others: Save Taxes with an IC-DISC

Yeo & Yeo CPAs & Business Consultants

If your business exports American-made goods or performs architectural or engineering services for foreign construction projects, an interest-charge domestic international sales corporation (IC-DISC) can help slash your tax bill. An IC-DISC is a “paper” corporation you set up to receive commissions on export sales, up to the ...

2015 Year-end Tax Planning Checklist

Yeo & Yeo CPAs & Business Consultants

As we wind down the 2015 tax year, year-end tax planning will be especially challenging. Congress has yet to act on a host of tax breaks that expired at the end of 2014. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this year or possibly...

New ACA Employer Reporting Requirements Effective Now

Yeo & Yeo CPAs & Business Consultants

Beginning in 2015, the Affordable Care Act (ACA) enacted two reporting requirements that call for employers to file additional forms with the Internal Revenue Service. The reporting requirements are satisfied by filing Forms 1095-B and 1095-C, along with the respective transmittal Forms 1094. Under the A...

What You Need to Know Before Donating Collectibles

Yeo & Yeo CPAs & Business Consultants

If you’re a collector, donating from your collection instead of your bank account or investment portfolio can be tax-smart. When you donate appreciated property rather than selling it, you avoid the capital gains tax you would have incurred on a sale. And long-term gains on collectibles are subject to a higher maximum rate (28%) than l...

Cost Segregation Studies

Yeo & Yeo CPAs & Business Consultants

If you own developed real estate, you may want to take advantage of this opportunity for substantial tax savings. Cost segregation studies identify shorter-life assets within real estate such as certain electrical and mechanical systems, decorative features, specialty fixtures, equipment and land improvements. Using cost segrega... Learn More

Reduction in Michigan Taxable Wage Base

Yeo & Yeo CPAs & Business Consultants

The Michigan Unemployment Agency has announced a reduction in the taxable wage base beginning with the third quarter of 2015.The taxable wage base on which businesses (that are not delinquent) pay unemployment tax has been reduced from $9,500 to $9,000. This reduction is a result of legislation enacted to properly fund the Unemployment Trus...