Year End Things To Do

John Hyre here.  Sorry I have “gone dark” for the last 45 or so days.  The usual pile up of year-end work (i.e. – procrastinating entrepreneurs planning at the last minute kills my schedule every November & December) was brutal this year.  Add some midnight oil being burned to digest the massive changes in the law and my schedule has been a bit overdone, to say the least.

 

I have included a list of “last minute” “to-do’s” and “year-end tax items” for your consideration.

 

Also:  I will be presenting a webinar on new tax law changes and what real estate investors, small businesses, and SDIRA/401k investors should be doing about it.  Congress has not given us much time to think or analyze, the changes take effect 1/1/18!  The webinar will be on Thursday, January 4th.  At $99, it is much cheaper than paying by the hour ($400/hour from January 1st) for the same information, click HERE if interested.

 

In addition:  Some of you have asked when the next SDIRA/401k workshop would be.  It is February 3rd & 4th in Tampa, click HERE for more information.

 

 

Year End THINGS TO DO

  • Get a notarized plan in place for a valuable $2,500 “expensing policy” (see the link at the end of this newsletter for more details)
  • Get your “Accountable Reimbursement Plan” in place (see the other link at the end of this newsletter for more details)
  • Prepay 2017 property taxes (that are due in 2018) on your personal residence – their deductibility will be limited after 2017
    • This strategy will not work with 2018 income taxes
  • Consider prepaying 2018 charitable contributions in 2017 if you can afford to do so – itemized deductions will be limited after 2017, you want to benefit from them now if at all possible
  • You should almost certainly defer income into 2018 if possible – your bracket will probably be lower, and you paying taxes later beats paying them now

 

“Miscellaneous Itemized Deductions” are DEAD after 2017.  Consider prepaying 2018 expenses for:

  • Appraisal fees for a casualty loss or charitable contribution;
  • Casualty and theft losses from property used in performing services as an employee;
  • Clerical help and office rent in caring for investments (“investments” mean activities that do not rise to the level of a “trade or business”);
  • Depreciation on home computers used for investments;
  • Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust;
  • Fees to collect interest and dividends;
  • Hobby expenses, but generally not more than hobby income;
  • Indirect miscellaneous deductions from pass-through entities;
  • Investment fees and expenses;
  • Loss on deposits in an insolvent or bankrupt financial institution;
  • Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed;
  • Repayments of income;
  • Safe deposit box rental fees, except for storing jewelry and other personal effects;
  • Service charges on dividend reinvestment plans; and
  • Trustee’s fees for an IRA, if separately billed and paid.
  • Tax prep (personal return only and only the non-business portions of it)
  • Employee expenses
  • Business bad debt of an employee;
  • Business liability insurance premiums;
  • Damages paid to a former employer for breach of an employment contract;
  • Depreciation on a computer a taxpayer’s employer requires him to use in his W2 job;
  • Dues to a chamber of commerce if membership helps the taxpayer perform his W2 job;
  • Dues to professional societies;
  • Educator expenses;
  • Home office or part of a taxpayer’s home used regularly and exclusively in the taxpayer’s work;
  • Job search expenses in the taxpayer’s present occupation;
  • Laboratory breakage fees;
  • Legal fees related to the taxpayer’s W2 job;
  • Licenses and regulatory fees;
  • Malpractice insurance premiums;
  • Medical examinations required by an employer;
  • Occupational taxes;
  • Passport fees for a business trip;
  • Repayment of an income aid payment received under an employer’s plan;
  • Research expenses of a college professor;
  • Rural mail carriers’ vehicle expenses;
  • Subscriptions to professional journals and trade magazines related to the taxpayer’s W2 job;
  • Tools and supplies used in the taxpayer’s W2 job;
  • Purchase of travel, transportation, meals, entertainment, gifts, and local lodging related to the taxpayer’s W2 job;
  • Union dues and expenses;
  • Work clothes and uniforms if required and not suitable for everyday use; and
  • W2 job-related education.
  • Repayments of income received under a claim of right (only subject to the two percent
  • floor if less than $3,000);
  • Repayments of Social Security benefits; and
  • The share of deductible investment expenses from pass-through entities.

Documents

Expensing Letter Dec 26 2017 for 2018

AccountablePlanSample

 

 

 

 

 

 

 

 

 

 

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