Three Income-tax-smart gifting strategies you don’t want to miss If your 2015 tax liability is higher than you’d hoped and you’re ready to transfer some assets to your loved ones, now may be the time to get started. Giving away assets will, of course, help reduce the size of your taxable estate. But with income-tax-smart gifting strategies, it also can reduce your income tax liability — and perhaps your family’s … Read more
Make a 2015 contribution to an IRA before time runs out Tax-advantaged retirement plans allows your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future years. So it’s a good idea to use up as much of your annual limits as possible. Have you … Read more
Deduct home office expenses- if you’re eligible Today it’s becoming more common to work from home. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. Eligibility requirements If you’re an employee, your use of your home office must be for your employer’s convenience, not just your own. If you’re self-employed, generally your home office must be your principal place of business, … Read more
Important Notice: Franchise Tax Board Letter Dear Clients, . In 2016, Capata was required to re-register on the Franchise Tax Board‘s website to be able to assist our clients in the preparation of their California income tax returns. Please understand we routinely visit the Tax Board website to confirm all information before finalizing any tax returns. Should a problem arise with your income tax returns, our professionals need to access … Read more
Exclusion Gifts: Your Opportunity is here, don’t wait! Exclusion gifts: Recently, the IRS released the 2016 annually adjusted amount for the unified exclusion gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in 2015). But even with the rising exemptions, annual exclusion gifts offer a valuable tax-saving opportunity. . The 2015 gift tax annual exclusion allows you to … Read more
PTO contribution arrangements can help prevent the year-end vacation-time scramble 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 employees scramble to use their … Read more
The 529 savings plan: A tax-smart way to fund college expenses If you’re saving for college, consider a Section 529 plan. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. (Some states do offer tax incentives for contributing.) Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and typically for state purposes … Read more
Your exec comp could be subject to the 0.9% additional Medicare tax or the 3.8% NIIT The additional Medicare tax and net investment income tax (NIIT) apply when certain income exceeds the applicable threshold: $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for other taxpayers. The following types of executive compensation could be subject to the 0.9% additional Medicare tax if your earned income exceeds the … Read more
The California New Mandatory Paid Sick Leave Law Effective July 1, 2015 California New Mandatory Paid Sick Leave: The implementation of the new rules regarding California Sick Leave. As of July 1, 2015, will apply to all employees, whether part-time or full-time. Essentially, there are two (2) different methodologies: (i) the “accrual method”; and (ii) the “allotment method”. The accrual method basically allows each employee to earn one (1) hour … Read more
