Tax Planning

PTO Contribution Arrangements Can Help Prevent the Year-End Vacation-Time Scramble

Yeo & Yeo CPAs & Business Consultants

From the Thanksgiving kick-off of the holiday season through December 31, many businesses find themselves short-staffed as employees take time off to spend with family and friends. But if you limit how many vacation days employees can roll over to the new year, you might find your workplace to be nearly a ghost town as em...

Protect Your Deduction: Verify That a Charity is Eligible to Receive Tax-Deductible Contributions Before You Donate

Yeo & Yeo CPAs & Business Consultants

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to make sure the charity you’re considering is indeed a qualified charity — that it’s eligib...

Reduce Taxes on Your Investments with These Year-End Strategies

Yeo & Yeo CPAs & Business Consultants

While tax consequences should never drive investment decisions, it’s critical that they be considered — especially by higher-income taxpayers, who may be facing the 39.6% short-term capital gains rate, the 20% long-term capital gains rate and the 3.8% net investment income tax (NIIT). Holding on to an investment until y...

​Reduce Taxes on Your Investments with These Year-end Strategies

Yeo & Yeo CPAs & Business Consultants

While tax consequences should never drive investment decisions, it’s critical that they be considered — especially by higher-income taxpayers, who may be facing the 39.6% short-term capital gains rate, the 20% long-term capital gains rate and the 3.8% net investment income tax (NIIT). Holding on to an investment until y...

Gearing Up for The ACA’s Information Reporting Requirements

Yeo & Yeo CPAs & Business Consultants

Starting in 2016, applicable large employers (ALEs) under the Affordable Care Act (ACA) will have to file Forms 1094-C and 1095-C to provide information to the IRS and plan participants regarding their health care benefits for the previous year. Both the forms and their instructions are now available for ALEs to study and begin prepara...

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 ...