Happy Holidays
The Burns Firm, Ltd. wishes you a very Happy Holiday season.
PATH Act provides tax relief for 2015
On December 18, the Senate passed — and the President signed into law — the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which the House had passed [...]
7 last-minute tax-saving tips
The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2015 tax liability — you just must act by December 31: Pay your [...]
Avoid a 50% penalty: Take retirement plan RMDs by December 31!
After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). [...]
Time to make 2015 annual exclusion gifts
Recently, the IRS released the 2016 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in [...]
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 [...]
Save tax — or at least defer it — by carefully timing business income and expenses
The first step to smart timing is to project your business’s income and expenses for 2015 and 2016. With this information in hand, you can determine the best year-end timing [...]
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.) [...]
Protect your charitable contributions
Protect your deductions by verifying that a charity is eligible to receive tax-deductible contributions before you donate. Donations to qualified charities are generally fully deductible, and they may be the [...]
Cost Basis in relation to Assets or Investments
Assets or investments...Do you take your cost basis into account when you sell an asset or investment? Your cost basis, or the amount you originally paid for it, is subtracted [...]
It’s time for tax planning!
The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes is to reduce your [...]
2 tax consequences to consider if you’re refinancing a home
Now may be a great time to refinance, because mortgage rates are still low but expected to increase. Before deciding to refinance, however, here are a couple of tax consequences [...]
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 [...]
Should you “bunch” medical expenses into 2015?
Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but generally only [...]
Gearing up for the ACA’s information reporting requirements
Starting in 2016, applicable large employers (ALEs) under the Affordable Care Act (ACA) will have to file Forms 1094-C and 1095-C to provide information to the IRS and plan participants [...]