December 21, 2016
individual retirement accounts; retire with $100,000 per year in income

Year-End IRA Reminders

With the end of the year approaching, take a moment to make sure you’ve taken care of your Individual Retirement Accounts: Contribute the maximum. In 2016, you can contribute a maximum of $5,500, or $6,500 if you are age 50 or over. Remember, you have to have taxable income to contribute to an IRA, but if you are married and filing jointly, you can each make contributions even if only one of you is working. Speak to a tax advisor to learn about how your deductions will be affected by an employer-sponsored retirement plan. Don’t contribute more than the max. If you contribute more than the IRA limits for 2016 (or more than your income allows you to contribute), you will be subject to a 6% tax on the excess contribution amount for each tax year the money remains in your account. You can withdraw excess contributions by the due date for your tax return. For more information about IRAs or end-of-year tax planning, please call us or another qualified tax advisor. Tip courtesy of IRS.gov
November 22, 2016

Taxable Rental Income

If you have a rental property or rent rooms in your residence, there are a few things you should know. Here’s how to navigate taxable rental income: Rental property income includes all advance and current rental payments, as well as penalty fees, e.g., fees charged for late payments. Should a tenant cancel their lease, the money forfeited from security deposits is still rental income. You should also report any property or services you receive in lieu of rent at their fair market value. For more information about rental income, speak to a tax professional or read IRS Topic 414 – Rental Income and Expenses. Tip courtesy of IRS.gov
November 15, 2016

Act Now to Avoid Tax-Time Surprises

Avoid tax-time surprises of large refunds or unexpected tax bills by bringing your estimated taxes in line with what you will actually owe: Check your withholding. If you’re an employee, work with your tax professional or use the IRS Withholding Calculator to check that your withholding is correct. Report any important life changes. If you’ve recently gotten married, had a child, gotten divorced, or added other dependents, you may need to adjust your withholding. If you have changed your name, make sure to file the change with the Social Security Administration to avoid errors at tax time. Have multiple sources of income? If you work multiple jobs or receive reportable income from other sources, you may need to make estimated tax payments. Consult your tax professional for help. To learn more about adjusting your tax withholding or paying estimated taxes, ask your tax professional or check Publication 505, Tax Withholding and Estimated Tax. Tip courtesy of IRS.gov
August 18, 2016
Tax Tip: Rules for Home Office Deductions

Making Money with Your Hobby

In this article we are going to discuss the topic of “Making Money with Your Hobby”. Most Americans have hobbies that they enjoy, but some use hobbies to generate extra income.  For example, eBaying, coin collecting, stamp collecting, antiquing, and many other pursuits can often rake in additional cash to cover expenses. The IRS requires you to report all income on your taxes, however the rules on deductions and income depend on whether it’s a hobby or a business. Here’s what the IRS says: Making Money with Your Hobby The easiest way to determine whether your hobby is a business or not, is to think about whether you treat it as a way to make a profit and whether you depend on the income. Consult a qualified tax professional if you have questions. You can generally deduct accepted expenses for your hobby, such as the cost of stamps or supplies. However, you can only deduct expenses up to the limit of the income earned by the hobby. For information on how to itemize your hobby deductions, consult a tax expert or read Publication 535, “Business Expenses,” on IRS.gov. Tip courtesy of IRS.gov