 |
| Helping You with Your Year-End Tax Planning |
|
| As we move closer to the end of the year, most of us do a lot of planning and decision-making in our personal lives. We plan our travels to enjoy a Thanksgiving feast with family or friends. We take time to plan shopping trips and decide what gifts we'll give our loved ones during the holidays. |
At this time of year at Mathieson, Moyski, Austin and Co., we're thinking about our clients and how we can assist with year-end planning. Here are just a few things for you to think about, including some changes that may affect you as an individual or as a business owner:
Conversion of Traditional IRA to Roth IRA |
 |
There is no definitive answer for when you should convert from a traditional IRA to a Roth IRA. It depends on a number of variables, including the size of the account, the amount that will be converted and your current tax bracket, among other things. This conversion regulation has not expired nor is it expected to in the near future. |
|
Underpayment of estimated taxes vs withholding
Are you a business owner who has not paid quarterly estimated taxes? Taxes on income are required to be paid quarterly. Failure to do so could result in significant interest and penalties. If you need help we can assist in planning to help reduce or eliminate such penalties.
Retirement contributions - 401(k), 403(b) & 457 plans
|
|
Contributing to employer-sponsored retirement plans is still one of the best ways to defer income. For 2015, each employee can defer up to $18,000 ($24,000 if you're over age 50) of wages by contributing to an employer plan. If the employer makes contributions, the total contribution for the 2015 year from both the employee and the employer is capped at $53,000 ($59,000 if you're over 50). |
 |
Do you have significant dollars that need to be moved out of your estate? The maximum federal estate and gift tax rate is 40% for gifts and estates that exceed the applicable lifetime exclusion. For 2015, the applicable exclusion amount is $5,430,000 for lifetime gifts made and estates of decedents who passed away in 2015. This exclusion jumps to $10,860,000 when spouses combine exclusions. The annual exclusion for gifts is $14,000 ($28,000 for married individuals who "split" gifts). |
Here are some options for tax planning that are still under consideration by Congress:
IRA payouts to Charity |
 |
This popular strategy allows taxpayers who are 70 ½ and older to make direct, tax-free distributions of up to $100,000 from their IRA to charity. While currently expired, expectations are that this regulation will be reinstated for 2015 and for 2016. |
|
|
For 2014 and prior, businesses could fully expense up to $500,000 of new or used tangible property (such as machinery, furniture, computers, etc.) through depreciation. Currently for 2015, businesses can only expense up to $25,000 of new or used tangible property and the limit would be reduced once the business property purchases exceed $200,000. There is discussion in Congress to extend the $500,000 but we'll have to wait and see.
|
|
Bonus Depreciation
Prior to January 1, 2015, Congress allowed expensing 50% of certain new (not used) tangible property in the year purchased. The remaining 50% would be expensed through regular depreciation over the remaining life of the asset. Businesses can elect out of bonus depreciation if it is more beneficial to spread the cost of the asset over its useful life. Legislation introduced in Congress this year would extend bonus depreciation through 2016 or potentially make the bonus depreciation permanent. However, Congress has yet to decide on extending the bonus depreciation.
R & D Tax Credit
|
 |
The research and development credit is a popular credit used by companies that incur increasing, qualified research and development costs. The credit's original expiration date was December 31, 1985 and has been extended fifteen times. The R & D Credit expired again as of December 31, 2014, and while it is expected to be renewed again by Congress, we'll have to wait and see. |
| Although we have not seen a great deal of major new tax legislation this year, it's important to stay informed. There's uncertainty surrounding expired tax breaks and the growing challenge to minimize taxes. We will provide updated information as it becomes available. Please let us know how we can assist you with your own year-end planning. We are here to serve! |
|
|
|
 |
Mathieson, Moyski, Austin & Co., LLP, is proud to announce that we are now members of the Fox Valley Associated General Contractors, an organization that provides guidance and assistance to member firms in the area of labor relations, legislation and government affairs,educational |
programs and training for the construction industry. Brian Hagene, CPA, is serving on the finance committee.
|
|
The Champions of Hope Gala is scheduled for Friday, November 13, to benefit CASA of DuPage (Court Appointed Special Advocates), an organization which trains volunteers to help monitor the court cases of children aged birth to eighteen who have been adjudicated as abused, neglected and/or dependent by the juvenile court system. CASA volunteers are appointed by a judge to serve as an advocate for the purpose of speaking in the child's best interest. Ron Austin, CPA, is currently chairman of the CASA board of directors. |
Please
click here
to learn more and to register for the event.
|
|
The 10th Annual Toasting for a Cause, a celebration of food and wine, will be held on Monday, November 16, at Sullivan's Steakhouse in Naperville. This event is sponsored byNaperville CARES, an organization that helps local families in financial crisis meet their essential needs by providing emergency financial support and resources. |
Shannon Bachara, CPA
, has served on the board of Naperville CARES since 2011 and in 2014
was elected secretary. [Shannon is also chair of the auction committee for the upcoming "Cuisine for a Cause," scheduled for April 2016. She's accepting silent auction donations now!]
 |
Save the date for the 28th Annual Wheaton Rotary Club Christmas Inn Dinner and Silent/Live Auction being held Saturday, Dec. 5, at the Abbington Banquets in Glen Ellyn!Mike Moyski, CPA, is an active member of the club. |
|
|
Our People Make a Difference
|
|
Congratulations to our own
Talyr Guerrero, CPA, who passed her CPA exam!
Talyr has
been working at Mathieson, Moyski, Austin & Co., LLP, since 2013 and she holds duel bachelor's degrees in accounting and management/organizational behavior from Benedictine University as well as a master's in business administration (MBA) from Benedictine. She is on the marketing committee for the firm and has been active in spearheading the Teen Parent Connection Holiday Gift Drive, a project of MMA & Co. and
Wheaton Bank & Trust
.
We're proud of Talyr and appreciate her and all of our team who work so hard to serve our clients throughout the year.
|
|
|
As sure as the leaves are turning and falling off the trees, 2016 is just around the corner. Thank you for your trust in us as we help you plan for the next year and beyond. We appreciate your business and continue to welcome your referrals. Please contact us to plan for the new year!
The Team at Mathieson, Moyski, Austin & Co., LLP
Jim Mathieson, CPA
Mike Moyski, CPA
Ron Austin, CPA
Brett Mathieson, CPA
Brian Eisenmenger, CPA
211 South Wheaton Avenue | Suite 300 | Wheaton, IL 60187 | 630-653-1616
|
|
|
|
| |
|
|
|
|
