Consider Your Taxes this Holiday Season

There is no better time than the holiday season to review any year-end tax planning decisions that could lead to savings in April. 

Taxpayers have had time to adjust to the tax rate changes from 2013, so when it comes to prudent tax planning for 2014 and beyond, accelerating deductions and deferring income will likely take center stage.

Here are a few things to consider:
•    The income tax rates for 2014 are the same as 2013, so most taxpayers with income similar to past years can expect their tax bill to be comparable to last year’s
•    Reviewing current income and withholding to ensure payments are on track can help you avoid surprises during the filing season.
•    If 2013 led to an unexpected payment being due, an increase to your withholding may help alleviate a cash crunch come April
•    Most employees can make an election to contribute additional amounts to their 401(k) to reduce the amount of their taxable income

Prudent tax planning in 2014 should involve a multi-year approach and consideration of expected changes to a taxpayer’s 2015 income and deduction picture.

For more expansive information and to read the entire article, please visit www.cpapracticeadvisor.com.

8 Enduring Client Lessons of 2014

Around this time, many executives are spending time reflecting on the past year and planning the next one.  They formulate a plan to become better leaders who build other leaders, develop and supercharge their teams, and hone their strategy and culture.  Your clients have surely taught you lessons that you won’t ever forget. 

Here are some indispensable business lessons that we’d all be wise to heed in 2015:

1.    Get ready to eat or be eaten.

2.    Dream big and execute ruthlessly.

3.    Leadership is indeed largely learn-able.

4.    Teams that tell each other the truth always win.

5.    Failure is not your enemy.

6.    Keep tabs on your top performers.

7.    Manage individuals, not stereotypes.

8.    Self-awareness is the meta-leadership skill of the 21st century.

On the most basic level, leaders that understand what they like to do, what they’re good at and where their passions lie will be met with success. 

The pinnacle of self-awareness means creating an organizational culture where people tell each other the truth, communicate and work as a team.  Be sure not to stop learning and embracing lessons you gain from your clients.   

To read the entire article, please visit www.entrepreneur.com.

Year-End Gifts to Charity: IRS Tips

Making year-end gifts to charity carries several important tax law provisions that have taken effect in recent years.

Some of the changes taxpayers should keep in mind include:

Rules for Charitable Contributions of Clothing and Household Items

Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible.

Guidelines for Monetary Donations

A taxpayer must have a bank record or a written statement from the charity in order to deduct any donation of money, regardless of amount. The record must show the name of the charity and the date and amount of the contribution.

The IRS offers the following additional reminders to help taxpayers plan their holiday and year-end gifts to charity:

• qualified charities
• year-end gifts
• itemize deductions
• record donations
• special rules

If the amount of a taxpayer’s deduction for all non-cash contributions is over $500, a properly completed Form 8283 must be submitted with the tax return.

For expanded information on these topics and to read the entire article, please visit www.irs.gov.

House to Consider “Hire More Heroes” Bill in January

Veterans with military health benefits should not be counted toward the small business coverage requirements mandated by the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148), House Majority Leader Kevin McCarthy, R-Calif., said recently.

In January, the House will take action to ensure that businesses with 50 or more full-time equivalent employees will not face a penalty if they hire veterans with coverage under TRICARE or the VA. 

The Hire More Heroes Bill (HR 3474) would exempt smaller companies from the PPACA’s employer mandate and penalties when they hire veterans.  The bill passed the House with a strong bipartisan vote in March (TAXDAY, 2014/03/12, C.4), but stalled in the Senate.

To read the entire article, please visit www.news.cchgroup.com.