2016 Year Tax Planning

Tax planning should not be left until the end of the year. Learn more about what you can do to save on taxes, plan for retirement and protect your assets

   

Personal Income

Bonuses

Review timing of bonuses to minimize effect of higher maximum tax rates.

Profit Sharing Distribution

If planning distribution determine what year(s) is best to take.

   
   

Itemized Deductions

Charity

Defer large charitable contributions until 2017

 

Medical

Aggregate and pay bills in 2017, if possible

   

 

   

Business Taxes

Income

Look beyond current year and compare cash flow needs to income estimates. Delay income when possible as close in on end of year.

 

Expenses

Make sure all tax deductible expenses are recorded.

   
   

Retirement Accounts

IRA Conversion

Consider 2016 vs 2017 tax rates when determining which year to Convert to Roth IRA

 

Distributions

Increase or decrease 2016 distribution based on tax bracket estimation for 2016 vs 2017

   

 

   

Capital Gains

Sell Investments

Record and report all basis adjustments on real estate sales

 

Bad Debt

Write off any bad debt as per IRS rules. Consider

   
   

Gifts

Making Gifts

Consider making greater gifts in 2016 to avoid decreased exemption and increased tax rates.

 

Trusts

Establish and make contributions in 2016