December 30th, 2016
TAX TIP OF THE DAY... 12/31 Last chance, last dance.
Last minute ideas to turbo charge your 2016 REFUND:
1) Don't forget to deduct your New Year's Eve celebration! Will you be with co-workers, business contacts, business customers or business advisors? Discuss how great 2017 will be and you may satisfy the MEALS & ENTERTAINMENT rules. Pay your tab before midnight to count for 2016!!! Alcohol is allowed for this deduction. If you stay in, use grocery store receipts. Document attendees and business discussion topics on the back of the receipt.
2) Make a monetary DONATION by 12/31... in person or via credit card. I don't suggest mailing a check today because the charity will post as 2017. Get a 2016 receipt!
3) Clothing donations... see yesterday's post.
4) Mail your 4th quarter state & local QUARTERLY ESTIMATED TAX payments today... Federal payment can wait. If you don't know what these are, then this does not apply to you.
5) If 2016 was a significant MEDICAL expense year and your tax pro indicated that you have enough to use... mail a check to pay medical, dental, glasses, contacts, hearing aids... or charge on credit card today. 2016 may be your only year to use these expenses. This strategy is called medical expense "bunching".
6) Business owners... purchase or trade up a VEHICLE over 6k lbs by 12/31. Call your tax pro first since there are some very cool tricks!
7) Business owners... set up a SOLO 401K today; fund it next year and it still counts for 2015. 12/31 is the set up deadline. You can change your mind later and not fund it. You would need to go in person to a financial advisor to get it done today by midnight. This is not an online DIY project.
8) Rental property owners... last chance for HOME DEPOT run. Stock up on tools, supplies, etc. New rules allow full deduction without depreciation.
Safe celebrations everyone!
SHARE WITH A FRIEND.
If you need any help... www.baboiancpa.com
We are accepting new clients and appreciate your referrals!
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David S. Baboian, CPA