Estimated Tax Payments - Don't Forget!

If you are self-employed or retired, you don't have tax withheld from a paycheck. So you need to "pay as you go" by sending estimated tax payments to the government on a quarterly basis.

The federal due dates are April 15, June 15, September 15, and January 15. (If the due date falls on a Saturday or Sunday, or national holiday, the deadline moves to Monday.)

Contact us if you have questions about estimated tax or you've lost the coupons we prepared for you.

Take Time to Plan Your Estate

Plot the Best Strategy

If you're like most people, you've probably delegated estate planning to the realm of things to be done "someday." After all, most of us dislike confronting our own mortality.

But proper estate planning accomplishes two major objectives -- it ensures that your wealth is distributed according to your wishes and it can reduce the payment of federal and state taxes.

By formally planning your estate, you will review many different areas, such as:

• Is your will up to date?

• Have you made proper provisions for minor children, including naming guardians and providing for their support?

• Should you consider a living trust to prevent your assets from going through probate?

• Are you distributing your assets in the most tax-efficient way possible? Should all of your assets be distributed to your spouse?

• Are there trusts that are appropriate for your situation?

• Should you have a formal gift-giving program so that you take advantage of the ability to make annual gifts to as many individuals as you want without paying taxes?

Estate planning is a complex subject requiring the advice of your legal expert to ensure that appropriate strategies are used. Please feel free to contact us so we can review your situation.



Protect Elderly Investors From Swindles

Financial planning becomes more complex as people age.  Studies show that elder abuse is a nationally-growing problem. Not only are many elderly people physically abused, some are taken advantage of financially.

Some unscrupulous sales people "churn" a person's account, buying and selling numerous times, earning commissions while the value of the account drops precipitously. Others put elderly investors into inappropriately risky accounts, promising outstanding returns.

Contact us. We can review investment accounts for you or your loved ones to

help prevent financial abuse.

It's Tax Time All Year Round

Many small businesses make the mistake of ignoring taxes until they get ready to have their returns prepared. However, it's wise to think about the tax implications of almost every business decision throughout the year. If you wait until the year has ended, there are very few options left.

Here are just five of the tax-smart decisions we can help you make during the year. If handled properly, they might significantly reduce your tax liability:

1. Should you buy or lease vehicles, equipment and buildings?

2. If you're going to make a major purchase toward the end of the year, would it be better to wait until after the first of the next year?

3. Which vehicles provide the best tax breaks? Should you buy an SUV? Do all SUVs qualify for favorable tax breaks?

4. If you buy a vehicle for personal use and business use, should your company own the car?

5. Should you pre-pay expenses in December, including rent or mortgage payments? Should you load up on supplies and equipment? Or would it be better in your situation to wait until next year to incur these expenses?

Every month, you make business decisions that can affect the taxes you pay for the year. Why not make those decisions with guidance from a tax professional? We can help you navigate the ins and outs of the law throughout the year, then prepare your business and personal tax returns by taking advantage of every tax break available.

Contact our office to find out how your business can plan all year to make the most of the tax law.

Will You Be Hit with AMT?

The end of the year is approaching so it's time to identify tax planning moves you should make before December 31st.

The first step is for our firm to make a projection of your income, as well as tax deductions and credits. If the projection shows you will be liable for the alternative minimum tax (AMT), there might be steps you can take now to reduce your tax bill.

For example, it's generally a good idea to reduce your adjusted gross income by contributing the maximum amount allowed to a retirement plan or traditional IRA.

One thing you probably don't want to do is prepay some of next year's property tax and state income tax bills because these expenses are disallowed in computing the AMT.

Who is liable for AMT? The calculations are complex but taxpayers with certain items on their tax returns are likely to trigger the tax.

For example, you have a greater-than-average chance of owing AMT if you exercise incentive stock options, claim many dependents, pay a fair amount of state income tax, or have large long-term capital gains.

The alternative minimum tax (AMT) was originally enacted to make sure high-income people who take advantage of multiple tax breaks don't escape paying tax to Uncle Sam. These days, however, middle-income taxpayers are being hit with AMT.

These are just a few of the issues involved. When it comes to the AMT, smart year-end planning can help you reduce or avoid the amount of tax you'll pay. Contact us before the end of the year for assistance with this tax, which can really sneak up on you.