• Only Nine Days Left for 2016 Tax Deductions

    22 December 2016
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    Your last day you may make a tax-deductible purchase, pay a tax-deductible expense or make tax-deductible charitable contributions for 2016 is this Saturday, Dec. 31.

    That still gives you time to make charitable contributions, pay deductible taxes, and make business acquisitions before year-end. However, making a last-minute purchase of business equipment isn’t enough to be able to deduct the cost of the equipment – you also must place that equipment into service before year’s end. This means you can’t take a deduction on your 2016 return if you take delivery of the equipment after the end of the year, even if you paid for the item in 2016.

    A charitable contribution to a qualified organization is considered made at the time of its unconditional delivery, which, for donations made by check, is the date you mail it. Contributions you make by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. If you use a pay-by-phone account, the date the financial institution pays the amount is considered the date you made the contribution.

    If you pay your taxes by check and your financial institution honors the check, the day you mail or deliver the check is the date of payment. If you use a pay-by-phone account (such as electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of the tax payment.

    Purchases, tax payments or contributions charged to your credit card are deemed purchased when the charge is made, regardless of when you pay the credit card company.

    Wishing you a happy holidays and a happy New Year. At Dagley & Co., we are looking forward to assisting you with your tax preparation needs during the coming tax season.

    As always, give us a call at (202) 417-6640 with any questions.

     

     

     

     

     

     

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  • December 2016 Business Due Dates

    5 December 2016
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    …And just like that it’s the first week of December! Year-end is quickly approaching, and so is the busy holiday season. Dagley & Co. has complied and easy-to-understand list of business due dates for you and your company. We reccomend adding them to you calendars ASAP. Contat us with any questions!

    December 1 – Employers

    During December, ask employees whose withholding allowances will be different in 2017 to fill out a new Form W4 or Form W4(SP).

    December 15 – Social Security, Medicare and Withheld Income Tax

    If the monthly deposit rule applies, deposit the tax for payments in November.

    December 15 – Non-Payroll Withholding

    If the monthly deposit rule applies, deposit the tax for payments in November.

    December 15 – Corporations

    The fourth installment of estimated tax for 2016 calendar year corporations is due.

    December 31 – Last Day to Set Up a Keogh Account for 2016

    If you are self-employed, December 31 is the last day to set up a Keogh Retirement Account if you plan to make a 2016 Contribution. If the institution where you plan to set up the account will not be open for business on the 31st, you will need to establish the plan before the 31st. Note: there are other options such as SEP plans that can be set up after the close of the year. Please call the office to discuss your options.

    December 31 – Caution! Last Day of the Year

    If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.

     

     

     

     

     

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  • December 2016 Individual Due Dates

    1 December 2016
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    Happy Decemeber! The busiest and most wonderful time of year has finally begun. With this, means your end of year planning must start ASAP. Before you get overwhelmed, plan out your Decemeber month calander TODAY. We’ve provided some indiviudal dute dates to make it a smoother process. As always, contact Dagley & Co. with any year-end questions regarding tax, business, or individual planning.

    December 1 – Time for Year-End Tax Planning

    December is the month to take final actions that can affect your tax result for 2016. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2016 should call for a tax planning consultation appointment.

    December 12 – Report Tips to Employer

    If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

    December 31 – Last Day to Make Mandatory IRA Withdrawals

    Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you turned age 70½ before 2016. If the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.

    December 31 – Last Day to Pay Deductible Expenses for 2016

    Last day to pay deductible expenses for the 2016 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2016). Taxpayers who are making state estimated payments may find it advantageous to prepay the January state estimated tax payment in December (Please call the office for more information).

    December 31 –  Last Day of the Year

    If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.

     

     

     

     

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  • Year-End Investment Moves

    14 November 2016
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    2016 is quickly coming to an end. We recommend to start thinking about your year-end business plans around this time of year. One question we like to ask is, do you invest publicly traded securities? If you answered yes to that questions, we have provided you with a couple of tax-saving possibilities you shouldn’t forget to consider before year-end. Dagley & Co. is here for you if you have any questions on these year-end decisions, or if you need some guidance.

    Zero Capital Gains Rate – If you are having a low-income year, there may be a way for you to take advantage of it.  There is a zero long-term capital gains rate for those taxpayers whose regular tax brackets are 15% or less.  This may allow you to sell some appreciated securities that you have owned for more than a year and actually pay no or very little tax on the gain.

    Offset Gains with Losses  – At this time of year, you should review your portfolio with an eye to offset gains with losses and to take advantage of the $3,000 ($1,500 for married taxpayers filing separately) of allowable annual capital loss allowance. Any losses in excess of those amounts are carried forward to future years.  However, keep in mind that if you replace a security that you sell for a loss, either 30 days before or after the date of sale, it will be considered a wash sale, and the loss cannot be used on your return, and instead, adjusts the basis of the replacement security.

    Please contact Dagley & Co. for assistance with your year-end tax planning needs. We are here for you – Hire anytime, anywhere.

     

     

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  • December 2015 Tax Due Dates for Business Owners

    9 December 2015
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    December 2015

    Yesterday, we went over the December 2015 tax due dates for individuals. Those of you who read our blog regularly know that we usually follow up with tax due dates for business owners, and voila, here we go:

    December 1 – Employers

    During December, ask employees whose withholding allowances will be different in 2016 to fill out a new Form W4 or Form W4 (SP).

    December 15 – Social Security, Medicare and Withheld Income Tax

    If the monthly deposit rule applies, deposit the tax for payments in November.

    December 15 – Nonpayroll Withholding

    If the monthly deposit rule applies, deposit the tax for payments in November.

    December 15 – Corporations

    The fourth installment of estimated tax for 2015 calendar year corporations is due.

    December 31 – Last Day to Set Up a Keogh Account for 2015

    If you are self-employed, December 31 is the last day to set up a Keogh Retirement Account if you plan to make a 2015 Contribution. If the institution where you plan to set up the account will not be open for business on the 31st, you will need to establish the plan before the 31st. Note: there are other options such as SEP plans that can be set up after the close of the year. Please call the office to discuss your options.

    December 31 – Where did the time go?! It’s the last day of the year!

    This is your last call to make financial moves that can affect your tax year. If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st. Please set up an appointment with Dagley & Co. before this day so we can get you all squared away in time.

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  • December 2015 Tax Due Dates for Individuals

    8 December 2015
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    December

    Have a merry month – and not a stressful month – with these December tax deadline tips from Dagley & Co! Image via public domain.

    December  – Time for Year-End Tax Planning

    December is the month to take final actions to affect your 2015 taxes. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2015 should get in touch with us at Dagley & Company for a tax planning consultation appointment. In case you need more reasons, do read our special post from Black Friday about why we may be the perfect accounting firm for you!

    December 10 – Report Tips to Employer

    If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

    December 31 – Last Day to Make Mandatory IRA Withdrawals

    Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you turned age 70½ before 2015. If the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.

    December 31 – Last Day to Pay Deductible Expenses for 2015

    Last day to pay deductible expenses for the 2015 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2015). Taxpayers who are making state estimated payments may find it advantageous to prepay the January state estimated tax payment in December (Please call the office for more information).

    December 31 – Where did the time go?! Last Day of the Year!

    If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.

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