Tax Calendar Tax Tips

Always take a sensible approach when it comes to tax planning. Structuring transactions strictly on the tax consequences is seldom a good idea. Your investments, family financial planning, and business activities should have economic merit apart from the tax considerations. If you’re facing college or other education bills this fall, check out the tax breaks…

Remember to contribute to your IRA for 2015. Those under age 50 can contribute up to $5,500. If you’re 50 or older, you can put $6,500 into your IRA for 2015. Put the maximum allowed into your 401(k) plan for 2015. This year you can set aside $18,000 if you’re under age 50. If you’re…

If you’re planning to adopt a child, get details on your eligibility for the adoption tax credit. Consider long-term health care insurance if appropriate in your situation. Premiums are deductible (within limits) under the rules for deducting medical expenses. If you’re in business, be aware that the legal form your business operates under can have…

Consider the tax shelter aspects of owning a home. You get a deduction for real estate taxes and for interest on your home mortgage (up to $1 million) or home-equity loans where available (up to $100,000). Check the tax savings of combining business and pleasure on the same trip this summer. Within the U.S., if…

Do you own a boat or recreation vehicle? Are you thinking about buying one? As long as the vehicle has sleeping space, a bathroom, and cooking facilities, you may be able to claim it as a second home and deduct the interest payments on your loan. Summertime is a good time to take care of…

If you are going to be out of town this summer, consider renting your home while you’re gone. The IRS allows you to receive up to 14 days of rental income per year completely tax-free. If you are planning a summer business trip, you and your spouse may be able to travel for little more…

When you rebalance your portfolio this year, remember that selling both winners and losers in the same year lets you offset your capital gains with losses. In addition, you can use up to $3,000 in net losses to offset ordinary income for the year. Your investment strategy should take taxes into account but should not…

If you don’t have an IRA (individual retirement account) and you qualify for a deductible one, setting one up and making a contribution before the April 18 deadline can cut your 2015 taxes. Be sure to make clear to your bank or broker that the contribution is for 2015 even though you’re making it in…

Elect S Corporation status. If your sole proprietorship or partnership is producing a net profit in excess of a reasonable compensation for your time, you could save money by incorporating and electing S status. The deadline for making an election for calendar-year 2016 is March 15. If you had self-employment income in 2015, you can…

Collect W-2s, 1099s, and other information on income and deductions needed to prepare your 2015 tax return. Make your appointment for tax return preparation early to give you time to find any missing information and still meet the filing deadline. Check for errors when you receive your 2015 W-2s, 1099s, and other tax information forms.…