CIBC Group, LLC | Business Consultants


Have You Considered Your Tax-Cutting Options?
Tis the season  -- to start considering all of your tax-cutting options and gather as many as possible before December 31st.  Tax planning is a preventative measure used before the end of the year to ensure you obtain the greatest benefit available when filing your tax return.

Below is a checklist which includes often-missed deductions, credits, and elections. 

At Work
•    Job hunting travel and telephone expenses
•    Employment agency fees
•    Job counseling fees
•    Resume preparation costs
•    Child care expenses while you work or go to school
•    Union or professional association dues
•    Special clothing worn on the job
•    Small tools used at work
•    Professional journals
•    Job skill improvement classes; including travel
•    Job-related moving expenses
Close to Home
•    Mortgage points paid on new home loan
•    Home-office expenses
•    Charitable contributions
•    Home improvements done for medical reasons, such as elevators, spas, swimming pools (to extent property value isn’t increased)
•    Deferral of the tax on home sale when you replace at equal or greater value
In Business

•   Option to expense a certain amount of equipment purchased each year

•    Deduct year-end bonuses to employees
•    Deduct business use of your car
•    Deduct the allowable amount of 
      transportation and parking benefits
      provided to employees
Relatively Speaking
•    Alimony is deductible; child support is not
•    Earned income credit for low income workers
•    Medical expenses of a parent for whom you provide over 50% of support
•    Consider making gifts up to the annual gift tax
For Investors
•    Deductible loss for worthless investments
•    Special credit for old building rehabilitations
    Evaluate passive loss exposure and potential investment shifts
•    Evaluate your mix of portfolio and passive income
This and That
•    Deduct IRA or Keogh plan contributions if you

•     Deduct gambling losses up to amount of winnings
•     Deduct casualty and theft losses over $100 and in
      excess of 10% of adjusted gross income

Elections Worth Analyzing
•    To file joint or separate returns (especially where
      one spouse has large medical expenses)

•     To take straight-line or accelerated cost recovery
      (depreciation) on business equipment
•     To forego the net operating loss carryback
•     To deduct disaster loss in year of disaster or prior
•      To exclude gain of $125,000 on home sale if
        you’re 55 or older
•      To elect S corporation status for your closely held

Amend if Necessary
•       If deductions were missed on prior year returns, it
        may be possible to file an amended return to
        claim a credit or refund. An amended return must

        be filed within 3 years after the date you filed the 
        original return or within 2 years after the date you
        paid the tax, whichever is later.

If you are interested in more tax-cutting options or would like to discuss specific tax planning goals, please contact our office.
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