Author Archives: Site Administrator
![Elderly parent Elderly parent](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/03/Elderly-parent-150x150.jpg)
When an elderly parent might qualify as your dependent
It’s not uncommon for adult children to help support their aging parents. If you’re in this position, you might qualify for the adult-dependent exemption. It allows eligible taxpayers to deduct up to $4,050 for each adult dependent claimed on their 2016 tax return. Basic qualifications For you to qualify for the adult-dependent exemption, in… Read More »
![Safe Harbors Safe Harbors](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/02/Safe-Harbors-150x150.jpg)
Tangible property safe harbors help maximize deductions
If last year your business made repairs to tangible property, such as buildings, machinery, equipment or vehicles, you may be eligible for a valuable deduction on your 2016 income tax return. But you must make sure they were truly “repairs,” and not actually “improvements.” Why? Costs incurred to improve tangible property must be depreciated… Read More »
![Mileage Mileage](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/02/Mileage-1-150x150.jpg)
Deduct all of the mileage you’re entitled to — but not more
Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. But you might also be able to deduct miles driven for other purposes, including medical, moving and charitable purposes. What are… Read More »
![Gift Tax Gift Tax](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/02/Gift-Tax-150x150.jpg)
Do you need to file a 2016 gift tax return by April 18?
Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to… Read More »
![ISOs ISOs](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/02/ISOs-1-150x150.jpg)
What you need to know about the tax treatment of ISOs
Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. However, complex tax rules apply to this type of… Read More »
![Deduction for Domestic Production Deduction for Domestic Production](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/02/Deduction-for-Domestic-Production-150x150.jpg)
The “manufacturers’ deduction” isn’t just for manufacturers
The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. Sec. 199 deduction 101 The Sec. 199 deduction, also called the “domestic production activities deduction,” is… Read More »
![Tax Brief Tax Brief](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/01/Tax-Brief-150x150.jpg)
Deduction for state and local sales tax benefits some, but not all, taxpayers
The break allowing taxpayers to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes was made “permanent” a little over a year ago. This break can be valuable to those residing in states with no or low income taxes or who purchase major items, such as a car or… Read More »
![tax fraud tax fraud](https://www.legacyprotectionlawyers.com/wp-content/uploads/2017/01/tax-fraud-1-150x150.jpg)
Help prevent tax identity theft by filing early
If you’re like many Americans, you might not start thinking about filing your tax return until close to this year’s April 18 deadline. You might even want to file for an extension so you don’t have to send your return to the IRS until October 16. But there’s another date you should keep in mind: January 23. That’s… Read More »
![word cloud - donation word cloud - donation](https://www.legacyprotectionlawyers.com/wp-content/uploads/2016/12/Donation-2-150x150.jpg)
Ensure your year-end donations will be deductible on your 2016 return
Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year end to qualified charities…. Read More »
![2017, silhouette of a woman standing in the sun 2017, silhouette of a woman standing in the sun](https://www.legacyprotectionlawyers.com/wp-content/uploads/2016/12/Retirement-Plan-Contribution-Limits-1-150x150.jpg)
Few changes to retirement plan contribution limits for 2017
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000. Type of limit 2017 limit Elective deferrals to 401(k), 403(b),… Read More »