Tuesday, December 8, 2015

Tax Extenders Still Have Not Passed So What Should I Still Be Doing?

 
 
 
Cathy Robinson, CPA
Senior Manager
 
 
Okay, it is December and Congress has not yet taken any action on provisions which have expired at the end of 2014.  There are still some things you should consider doing before year end:
 
1.       Review your withholding and estimated tax payments for 2015. 
2.       Consider if you are liable for the alternative minimum tax in 2015. 
3.        Consider realizing losses on stock to offset gains.
4.       Postpone any additional income until 2016.
5.       Accelerate any deductions in 2015.  Consider using your credit card to pay for the deductible expenses.
6.       Bunching of any expenses.  For example, pay three real estate bills in a year.
7.       Ask your employer to defer your 2015 bonus until 2016. 
 
These are just some suggestions in order to help eliminate an unpleasant surprise in April next year.  As with any tax advice you read or hear, you need to ensure the advice provided agrees with your tax situation.