Tax Planning

How to Determine if You Need to Worry About Estate Taxes

Yeo & Yeo CPAs & Business Consultants

Here’s a simplified way to project your estate tax exposure. Take the value of your estate, net of any debts. Also subtract any assets that will pass to charity on your death. Then, if you’re married and your spouse is a U.S. citizen, subtract any assets you’ll pass to him or her. Those assets qualify for the marital deduction ...

Avoid a 50% Penalty: Take Retirement Plan RMDs by December 31

Yeo & Yeo CPAs & Business Consultants

 After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). You also could be required to take RMDs if you inherited a retirement plan (including Roth IRAs). If you don’t comply — which usu...

Tax Extenders Legislation is Enacted

Yeo & Yeo CPAs & Business Consultants

On December 18, 2015, President Barack Obama signed the Protecting Americans From Tax Hikes Act of 2015. The Act extends dozens of favorable tax benefits that expired at the end of 2014. Following are some of the key provisions included in the bill. Permanent extension of the following – R&D tax credit, with AMT turn-off and st...

When Will Congress Pass “Extenders” Legislation to Revive Expired Tax Breaks for 2015?

Yeo & Yeo CPAs & Business Consultants

This is the question on tax-savvy Americans’ minds. Many valuable tax breaks aren’t permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute to do so. For example, Congress didn’t pass 2014 extenders until December 2014, making the legislation retroa...

Save Tax — or at Least Defer It — by Carefully Timing Business Income and Expenses

Yeo & Yeo CPAs & Business Consultants

The first step to smart timing is to project your business’s income and expenses for 2015 and 2016. With this information in hand, you can determine the best year-end timing strategy for your business. If you expect to be in the same or lower tax bracket in 2016, consider: Deferring income to 2016. If your business uses the cash m...

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...