A miracle has happened! Because Congress passed the Protecting America From Tax Hikes (PATH) Act of 2015, there is some stability in year-end tax planning. (To download the November eLetter, click here.)
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A PATH to Year End Tax Benefits
This month’s bulletin is a deep dive into the PATH, with specific reading on key provisions of the law and highlights of how you might take advantage of these (relatively) stable tax provisions. For example, first, the bulletin looks at “year-end planning of itemized deductions.” This is an “oldie but goodie” in tax planning, namely figuring out if you are going to take the standard deduction or if you are going to itemize. And, if you are going to itemize, considering accelerating deductions into the 2016 tax year. Secondly, the “sales tax deduction” is now permanent. This doesn’t generally help people in a state like California which has an income tax; but it may help you if you have too few deductions to itemize unless you use “sales taxes.” It depends – so reach out for a consultation! Third, the PATH act exempts certain IRA-to-charity transfers from income tax. If you are advanced in years, this may be a good way to give to charity and shield other income from taxation (by moving deductions “from” certain streams of income “to” other streams of income). Again, it depends – so reach out for a consultation. Finally the bulletin rounds out the issue with discussions of medical, retirement planning, and business deduction planning issues. If you read only one bulletin this year, this is the one “not to miss!”
About Safe Harbor LLP – a Professional CPA Firm in San Francisco
Safe Harbor LLP is a CPA firm that specializes in accounting and tax services for individuals and businesses throughout the San Francisco Bay Area and greater California. Safe Harbor CPAs helps both individuals and businesses with tax preparation, IRS audit defense, and audited financial statements. The firm prides itself on friendly yet professional service and utilizes state-of-the-art Internet technology to provide quality customer service. Its goal: to be the best CPA firm in San Francisco.
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