In This Issue

"Bunch" Miscellaneous Itemized Deductions

Grandchild in College?...

Check Your IRA Basis...

Vacation Home Owners...

Quick Links

Resources
More About Us

Connect With Us:

Do An Estate Planning Review

Is estate planning no longer necessary? With a federal unified estate and gift tax exemption of $5,340,000 for 2014 and the ability to share unused portions of the exemption between spouses, you may think so.

Yet that initial reaction might not be correct. For example, state laws can differ from federal... (Read More)

"Have had great service and advice for over 20 years."

-William and Barbara Dunk

SEPTEMBER 2014

It's hard to believe but the end of 2014 is rapidly approaching and for most of us summer vacations are behind us.

Speaking of vacation, fall is the perfect time to start reviewing the potential tax consequences for any vacation homes that you may own. This is especially true if you use the property for both rental and personal use. Tax treatment varies depending on how the property is characterized and the rules can be complicated and confusing.

Please give us a call; we're here to help so that you can relax.

Kick Your 2014 Tax Strategies Into Gear

You may be able to save money on your 2014 taxes by making a few well-timed moves by Dec. 31. Here are five areas to examine with your tax advisor before the end of the calendar year:

1. Deductible expenses. If your adjusted gross income (AGI) exceeds a certain level, the amount of your itemized deductions will be reduced. ...(Read More)

"Bunch" Miscellaneous Itemized Deductions to Reduce Your Tax Bill

Many expenses that may qualify as miscellaneous itemized deductions are deductible for regular tax purposes only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this "floor."

So now is a good time to add up your potential deductions to date. If they're getting close to - or they already exceed - the 2% floor, consider incurring and paying additional expenses by Dec. 31, such as:...(Read More)

Grandchild in College? Paying Tuition Could Save Gift and Estate Taxes

Now's the time of year when many young adults are about to head back to college - or to enter their first year of higher education. If you have a grandchild who'll be in college this fall and you're concerned about gift and estate taxes, you may want to consider paying some of his or her tuition...(Read More)

Check Your IRA Basis

Do you have basis in your traditional IRA? If you're not sure, taking the time to review prior-year tax returns could save tax dollars in the future. That's because basis in an IRA reduces the taxable portion of your distributions.

Here's how it works. You accumulate basis in a traditional IRA by making nondeductible contributions, or by rolling after-tax contributions from other qualified plans into your account. In either case, you receive no current tax benefit from the contribution.

The benefit comes later, when you begin to take withdrawals...(Read More)

Vacation Home Owners:

Adjusting Rental vs. Personal Use Might Save Taxes

With summer drawing to a close, if you own a vacation home that you both rent out and use personally, it's a good time to review the potential tax consequences:

If you rent it out for less than 15 days, you don't have to report the income. But expenses associated with the rental won't be deductible.
If you rent it out for 15 days or more, you must report the income. But what expenses you can deduct depends on how the home is classified for tax purposes, based on the amount of personal vs. rental use:...(Read More)