Masthead Dennis

 

Tax & Business Newsletter - October 2017

 



Book of the Month: 
 
Rich Dad Poor Dad is Robert's story of growing up with two dads - his real father and the father of his best friend, his rich dad - and the ways in which both men shaped his thoughts about money and investing. The book explodes the myth that you need to earn a high income to be rich and explains the difference between working for money and having your money work for you.




Tax Filing Reminders

     October 16 -

  • Filing deadline for 2016 tax returns for individuals or corporations if you requested/received a six-month extension. Pay taxes due by this date.
  • Deadline to recharacterize a Roth IRA to a Traditional IRA.
  • Deadline to fund your Keogh or SEP plans if you requested a filing extension.

How to Ace the FAFSA
The Free Application for Federal Student Aid (FAFSA) is a tool that students use to apply for more than $120 billion in federal funds. Unfortunately, each year many students miss out.

Even if you don't think you or your child qualify for federal aid, filling out a FAFSA is important because it could be used to determine eligibility for nonfederal aid and private funds.

FAFSA available October 1, 2017 Previously, the FAFSA was unavailable until January. A recent change makes the application available October 1, 2017. That's because the 2018-19 FAFSA can be completed with your 2016 tax info.

Avoid FAFSA mistakes. Don't forgo federal student aid by making one of the following common filing mistakes:
  • Mistake: Not reading the instructions or questions
    Tip: Answer all questions - even if the answer is zero. If left blank, the question will be considered unanswered. Check the FAFSA website if you are unsure of definitions of key FAFSA terms.
  • Mistake: Incorrect, incomplete or non-matching data
    Tip: Complete the FAFSA online. It takes only 3-5 days to process when submitted electronically. The online version has built-in safeguards that identify and prevent many errors.
  • Mistake: Not filing on time
    Tip: Get the application submitted ASAP. The sooner you or your child gets started, the higher the likelihood of being awarded funds since many are distributed on a first-come, first-served basis.
Remember, students need to complete a FAFSA each year because eligibility does not carry over and can vary based on circumstances.

Equifax Data Breach
Following is helpful information found on the Federal Trade Commission IdentityTheft.gov website. You need to act now if you haven't yet taken steps to prevent the misuse of your sensitive personal information that was exposed in the Equifax Data Breach. 

The first step, as stated below, is to determine if your personal information was compromised.   Equifax is offering free services to all U.S. consumers due to the breach. Visit Equifax's website, http://www.equifaxsecurity2017.com.
  • Find out if your information was exposed. Click on the "Potential Impact" tab and enter your last name and the last six digits of your Social Security number. Your Social Security number is sensitive information, so make sure you're on a secure computer and an encrypted network connection any time you enter it. The site will tell you if you've been affected by this breach.
  • Whether or not your information was exposed, U.S. consumers can get a year of free credit monitoring and other services. The site will give you a date when you can come back to enroll. Write down the date and come back to the site and click "Enroll" on that date. You have until November 21, 2017 to enroll. ยท You also can access frequently asked questions at the site.
Here are some additional steps you might want to take b ecause your Social Security Number was exposed...
  1. Consider whether you want to sign up for the free credit monitoring services that Equifax is offering.
  2. Get your free credit reports from annualcreditreport.com, and check for any accounts or charges you don't recognize. You can order a free report from each of the three credit bureaus once a year.
  3. Consider placing a credit freeze. A credit freeze makes it harder for someone to open a new account in your name.
  4. If you place a freeze, you'll have to lift the freeze before you apply for a new credit card or cell phone - or any service that requires a credit check. If you decide not to place a credit freeze, at least consider placing a fraud alert.
  5. Try to file your taxes early - before a scammer can. Tax Identity Theft happens when someone uses your Social Security number to get a tax refund or a job. Respond right away to letters from the IRS.
  6. Don't believe anyone who calls and says you'll be arrested unless you pay for taxes or debt - even if they have part or all of your Social Security number, or they say they're from the IRS. 
  7. Continue to check your credit reports at www.annualcreditreport.com. You can order a free report from each of the three credit reporting agencies once a year.
  8. Equifax plans to notify people whose credit card information was exposed. If you receive a notice...Contact your bank or credit card company to cancel your card and request a new one.
  9. If you have automatic payments set up, update them with your new card number.
  10. Review your transactions regularly. Make sure no one misused your card. If you find fraudulent charges, call the fraud department and get them removed.

Going forward, it's important to monitor your credit card and bank accounts closely. If you find charges you don't recognize, come back to IdentityTheft.gov to report it.


Business Tax: Time to Consider Section 179?
Section 179 expensing can be a very powerful tax-planning tool for small- and medium-sized businesses acquiring capital assets. While it doesn't change the amount of depreciation you can take over the life of a capital purchase, it can change the timing by allowing you to deduct your purchase in the first year you place it in service.

Review these details if you're considering depreciating your business assets under Section 179:
  • Section 179 allows deducting the expense of up to $510,000 of qualified business purchases.
  • A Section 179 deduction cannot create a loss for the business.
  • A Section 179 deduction must be for business use. If an asset is not entirely used for business, the allowance is reduced.
  • If you sell a Section 179 asset prior to the full depreciation period, you will have to record any sales proceeds as taxable income.
  • Many states limit the use of this federal shifting of depreciation.
Taking Section 179 for capital purchases can be useful, but it's not for everyone. Using it for an immediate tax break means it'll no longer be available for future years.

Connect With Us
For news you can use, tax filing reminders, small business tips and inspiration for all....follow us on all your favorite social media platforms! 

Like us on Facebook   Follow us on Twitter   Find us on Google+   View our profile on LinkedIn

This newsletter provides business, financial, and tax information to clients and friends of  our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.

Snyder & Company, PA, CPA's
Silverside Professional Park                                                      Visit our Website 
1405 Silverside Road
Wilmington, DE 19810
302.475.1600

"By the way, who do you know that could use our service?  Please share this email with them."