Skylar Dubrow CPA’s End Of 2015 Tax Tips
December 15, 2015
Skylar Dubrow, CPA
Blog
December 15, 2015Skylar Dubrow, CPABlog
Well, communication and requests are now coming across my desk in a way that we haven’t seen for a few months, but I’ve come to expect it for this time of the year. We are in our intense “preparatory” stage for tax season AND so are our (smarter) clients.
I absolutely love what I get to do … but it does add some oomph to the “holiday rush”.
And one of the primary things we do right now is this rush of last-minute tax planning moves. Because as I’ve said before, preparing a tax return is a defensive, retrospective action … but making the right moves ahead of time is going on the offensive, and it affects the future.
Which means I’d like that far better for you.
One important note: Penalties for ACA NON-compliance (i.e., if you don’t have health insurance, and/or it isn’t reported correctly) are going up significantly this year. Open enrollment for the Marketplace plans ends on December 15th — so make sure you have that covered, at the very least.
But here are some other tax tips for you, which hopefully we can discuss in person or via phone ((818) 889-7285) before the end of the month/year.
Skylar Dubrow CPA’s End Of 2015 Tax Tips
“The art of life is a constant readjustment to our surroundings.” – Kakuzo Okakaura
When we make informed tax decisions, it is always best, of course, to start with real data. That’s why a good first step in any tax planning environment is preparing a draft tax return, to see where things stand before you make any hasty moves. Obviously, this is something we would be doing on your behalf, unless you want to navigate the software for a few hours. That is up to you.
(And no — you don’t have to fill in every line of your 2015 Form 1040. But a down-and-dirty analysis of what your upcoming tax return might look like could reveal some tax areas that you need to take care of by Dec. 31.)
But knowing what your income will look like, and particularly having in mind what you project that it might be for 2016 will help make these decisions easier.
Next, it’s always a good idea to harvest tax losses if you have investments: Did you sell some assets earlier for a nice gain? Or are you expecting your mutual funds to provide you with a nice payout of dividends and/or capital gains distributions? Look for some losers in your portfolio to offset that added income.
Take a quick look at your withholding — and you can make some last-minute shifts to ensure that you aren’t overpaying, or to prevent yourself from being slapped with an underpayment penalty (yes, those do exist).
And then, of course, we move to the meat of your possible moves. Before December 31, we can help you look into…
Also, you could …
… Make the Switch to a Roth IRA. Roth conversions are taxed in the year the conversion happens. However taxpayers have the option to undo part or all of that conversion by their filing deadline. But in order to retroactively undo part of their conversion next year, they first have to convert this year. So if you are on the fence about converting, consider taking the plunge before the end of the year knowing that you (and/or WE) can re-characterize some or all of the amounts early next year.
All of these tax tips are good options to make a dent in your 2015 tax bill. Help us help you make the right decisions and call: (818) 889-7285 to set up a year-end tax planning appointment (or click the button at the top of this page to email me).
To your family’s well-planned saving over the holidays…
Warmly,
Skylar Dubrow CPA
(818) 889-7285
The Dubrow Group, CPAs
Preparing a correct and accurate tax return is our priority. We proudly stand behind our work and if a mistake does happen that is our fault, we will immediate correct the mistake and gladly refund your money if requested.
If any penalties or interest are incurred due to our mistake, we will do everything we can to fix the problem and cover any penalties should they arise.
We feel so confident in our processes to account for all deductions and uncover hidden deductions that we guarantee that you will pay the lowest amount of taxes legally possible. We spend a good amount of time correcting and fixing other so called tax pros mistakes and oversights.
We are so committed to giving out clients the best service. We do this by taking thte time to understand our clients situation and asking the right questions to make sure every deduction is accounted for. And remember we work for you, NOT the IRS.
Not only do we prepare an accurate tax return, we will inform you of tax saving strategies and best record keeping practices should we see fit.
Starting January 1, 2017, all our returns come with our “Silver” Stress Free Audit Insurance, FREE with paid tax preparation. Our Silver package includes our full support when handling IRS and State Notices for the 2016 tax year. If you receive a notice, send it to us and we will work with you to organize the required documentation and we will respond to the IRS on your behalf.
“Many tax experts are predicting an increase in IRS audits (because of the system automation), as well as an increase in audits by the state”
Our Gold Package adds our representation for an actual IRS audit for the current year. Whether it be an “audit by mail”, or an actual audit at one of the IRS locations, we will work with you to compile all the necessary documentation and represent you in front of the IRS for no additional charge. Our fees to represent our clients in an audit scenario can range from $1000- $2500 & up depending on time and complexities.
Our Gold option is an optional add on service & not included with regular tax preparation. Gold protection covers the current tax year only regardless of when you get audited.
The IRS and state authorities are behind in auditing tax returns and matching reporting documents to tax returns.They are currently working on 2012 & 2013 years.
Our Platinum level package covers you for a period of 7 years. It Is just like our Gold package, but it includes the currtent year and 6 prior years. We will provide audit coverage for prior years tax returns, even if we did not prepare them.
How is that for taking care of our clients! Once the Platinum level package is purchased, only the gold level will be required in future years as the previous years have been protected by the one time Platinum purchase.
