Tax Season is upon us, so here are a few things you might want to know:
EMPLOYEE BUSINESS EXPENSES
Company drivers can deduct, as an itemized deduction, unreimbursed business expenses incurred in connection with driving for your employer that are required by your employer. They include per diem, communication services, tolls, work boots etc. Make sure your company does not have a reimbursement plan.
IRA CONTRIBUTION LIMITS
Roth and Traditional IRA Contribution limits for 2014 incomes taxes are $5500. If you are age 50 or over the limit is $6500. If attained age 70½ during 2014 you can no longer make traditional IRA contributions. However, you can still contribute to a Roth IRA.
CHARITABLE CONTRIBUTION
If you are going to make a donation to a charity do so before the end of the year. It could lower your taxes. You must have a written record for all donations in order to claim a deduction. Contributions of $250 or more must have written acknowledgment from the organization.
SEC 179 DEPRECIATION RULES (LATE TAX PLANNING)
For 2014, under current law, Sec 179 first year depreciation write off is limited to $25,000. That is down from $500,000 in 2013. Also, the bonus depreciation has been eliminated.
SELF EMPLOYED 401K RETIREMENT PLAN FOR 2014 TAXES
If you are thinking about making a retirement plan contribution for 2014 you may open a 401K Plan by December 31 without making a contribution. You will have until 4/15/15 or 10/15/15 with extension to fund the plan.
AGE 70½ RETIREMENT WITHDRAWAL - REQUIRED MINIMUM DISTRIBUTIONS (RMDs)
Those of you who have attained age 70½ during 2014 must start withdrawing from their IRAs based on their life expectancy whether you are working or not. You can delay the first year withdrawal but must then take two the following year.
AGE 70½ RETIREMENT WITHDRAWAL - REQUIRED MINIMUM DISTRIBUTIONS (RMDs) PART II
Required Minimum Distributions (RMDs) from employer retirement plans including 401Ks for those reaching 70½ can be delayed until the year you retire unless you own more than 5% of the business sponsoring the plan.
EMPLOYEE BUSINESS EXPENSES
Company drivers can deduct, as an itemized deduction, unreimbursed business expenses incurred in connection with driving for your employer that are required by your employer. They include per diem, communication services, tolls, work boots etc. Make sure your company does not have a reimbursement plan.
IRA CONTRIBUTION LIMITS
Roth and Traditional IRA Contribution limits for 2014 incomes taxes are $5500. If you are age 50 or over the limit is $6500. If attained age 70½ during 2014 you can no longer make traditional IRA contributions. However, you can still contribute to a Roth IRA.
CHARITABLE CONTRIBUTION
If you are going to make a donation to a charity do so before the end of the year. It could lower your taxes. You must have a written record for all donations in order to claim a deduction. Contributions of $250 or more must have written acknowledgment from the organization.
SEC 179 DEPRECIATION RULES (LATE TAX PLANNING)
For 2014, under current law, Sec 179 first year depreciation write off is limited to $25,000. That is down from $500,000 in 2013. Also, the bonus depreciation has been eliminated.
SELF EMPLOYED 401K RETIREMENT PLAN FOR 2014 TAXES
If you are thinking about making a retirement plan contribution for 2014 you may open a 401K Plan by December 31 without making a contribution. You will have until 4/15/15 or 10/15/15 with extension to fund the plan.
AGE 70½ RETIREMENT WITHDRAWAL - REQUIRED MINIMUM DISTRIBUTIONS (RMDs)
Those of you who have attained age 70½ during 2014 must start withdrawing from their IRAs based on their life expectancy whether you are working or not. You can delay the first year withdrawal but must then take two the following year.
AGE 70½ RETIREMENT WITHDRAWAL - REQUIRED MINIMUM DISTRIBUTIONS (RMDs) PART II
Required Minimum Distributions (RMDs) from employer retirement plans including 401Ks for those reaching 70½ can be delayed until the year you retire unless you own more than 5% of the business sponsoring the plan.