- A review course on education tax credits
- Unclaimed property can be a business issue
- Watch out for special rules when making a Roth conversion
- Some business meals get a full deduction
- DB(k) retirement plans are new this year
- Pay yourself reasonable wages
- The kiddie tax: A basic review
- Follow IRA withdrawal rules
- Homebuyer tax credit extension
- Collectibles face special tax rules
- Rental property tax rules are complicated
- Payroll tax update
- Don't overlook the Roth five-year holding requirement
- Can you qualify for the small business health insurance credit?
- Military tax breaks are available
- Do you need to file an FBAR?
- Roth IRA conversion: Act now, pay later?
- Start your 2010 planning with your 2009 tax return
- Don't ignore employer penalty notices
- The HIRE Act offers tax breaks for hiring
- Direct deposit: Should you buy savings bonds?
- The Patient Protection and Affordable Care Act reforms health care
- Can you take a home office deduction?
- Deducting interest expense: What you need to know
- Did you receive Form 1099-C?
- Missing a W-2?
- Who has to file an income tax return?
- New law allows early deduction for Haiti relief donations
- The dependency exemption: What you need to know
- What's your status?
- Payroll - A 2010 employer update
- Review payroll reporting for 2009
- What to expect on your 2009 return
- Check these vehicle tax breaks for 2009
- Know the rules for backup withholding
- Tax issues come with gifting stock
- Hiring seasonal employees? What you need to know
- Don't get tripped up by a wash sale
- New law includes two important tax changes
- Two IRA tax breaks are scheduled to expire soon
- Take a tax deduction for worthless stock
- Withdrawals from your SIMPLE IRA may not be so simple
- Savings bonds can help pay for college
- Tax tips for first-time employers
- First-time homebuyer credit to expire November 30
- Closing your business has tax implications
- You need basis to deduct an S corporation loss
- Unemployed? Pay health premiums from your health savings account
- Some IRA terms you should know
- Employee or independent contractor? Don't misclassify workers
- Take a penalty-free IRA withdrawal for medical expenses
- Your business vehicle expenses are deductible
- Plan for the phase-out of tax breaks
- Your business could benefit from the extended net operating loss carryback
- When is income taxable, and when is it not
- IRS has a new procedure for correcting payroll returns
- Capture tax breaks when you refinance
- Prepare now for a possible disaster
- Tax law changes could affect your 529 plan
- Two reasons to review tax payments
- The COBRA credit: What employers must know
- Don't waste your tax refund
- A new vehicle could give you a new tax break
- Check out the "making work pay" credit
- Don't overlook a theft loss deduction
- Who owes self-employment tax?
- The Internal Revenue Service and Treasury Department Release Additional FBAR Guidance
- HIRE Act
- Health Care Updates
News
Start your 2010 planning with your 2009 tax return
Have you been too busy to start this year's income tax planning? Would having an already completed reference guide help?
If so, pull your just finalized federal income tax return from the stack of to-be-filed paperwork. The forms offer valuable insight into your finances.
Here are two examples of how to use your 1040 for tax planning.
- Line 12, Business income or (loss). Your business income impacts your adjusted gross income. AGI, in turn, affects credits and deductions, as well as federal and state income tax and self-employment tax (shown on Line 56 of your federal return).
Tax-saving opportunities to consider for 2010 include hiring family members, starting a retirement plan, and keeping track of "soft" expenses such as business use of your personal vehicle.
Financial planning tip. Assess the structure of your business. Incorporating or forming an LLC can limit personal liability.
- Line 40, Itemized deductions or standard deduction. Did you just miss being able to itemize on your 2009 return? Consider timing deductions this year. For instance, you may want to plan now to accelerate charitable contributions or to bunch property tax payments into one year.
As you scan your return, keep in mind the interrelationships between various income and deduction items.
Example. Some itemized deductions, such as medical expenses, are limited to a percentage of AGI. That means tax planning affecting your business income can also have an effect on how much medical expense you may be able to claim.
We'll be happy to help analyze your return and maximize 2010 tax savings. Give us a call so we can begin today.
For more information, contact Ross Rizzo at 212-404-5528, rrizzo@sb-cpa.com.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
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