Relevant End of Year Enquiries To Make With Your Tax Advisor

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					                       Relevant End of Year Enquiries To Make With Your Tax Advisor


    The taxes for businesses are much more complicated than they are for individuals so doing them by
    yourself is not really an option. It is therefore best check with your tax consultant to strategize and
    ensure that you pay your fair share in taxes. Your tax advisor can outline what your tax liability will be
    before the end of the year, and offer some help reduce that tax liability, help you figure out exactly what
    financial moves you need to make before year’s end to do so, and here’s what you must clarify with
    your consultant.
   Accelerate or defer income
    It may be a good idea to bring in more income this year instead of the next if you think you’ll be in a
    higher tax bracket. If you think you may be in a lower tax bracket next year, then it is best to try to defer
    end-of-year bonuses until January, postpone exercising non qualified stock options , as well as any
    Individual Retirement Account distributions.


   Roth conversions- necessary?
    Anyone saving money in a traditional IRA, may want to convert some of the money into a Roth IRA.
    While it may be necessary to pay taxes on that money now, the earnings are likely to grow tax-free,
    which could mean huge tax savings.


   Are changes required to the 2014 employee benefits?
    Evaluate your flexible spending accounts, health savings accounts and dependent care arrangements
    and it may be prudent to increase the funds in your flexible spending account spending, so as to allow
    you to use pretax money for out-of-pocket medical expenses. This may be beneficial as these funds
    could help you pay for the additional doctor bills and prescriptions, while also lowering your overall tax
    bill.


   The charitable contributions to be made
    Anyone with a higher income this year, may want to make more charitable deductions by the end of the
    year to put yourself in a lower tax bracket. Those in a lower tax bracket, or those who have been
    unemployed, it could be a good idea to push your end-of-year charitable giving in January.


   Year-end interfamily gifting
    As every individual can give $14,000 to as many people without paying taxes on those gifts, it may be a
    good idea to transfer wealth to working children in a way so that it won’t be taxed, and give them a gift
    the same amount as their Roth IRA contribution – $5,500 for this year.


    Take the assistance of an experienced tax professional to get expert guidance in determining how
    changes in the tax laws will affect your business and get effective year end tax planning tips to reduce
    future tax liability, etc.

    Read More on - Small Business Tax Returns

				
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Description: The taxes for businesses are much more complicated than they are for individuals so doing them by yourself is not really an option.
Siddesh BM Siddesh BM mytaxfiler http://www.mytaxfiler.com
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