Gregory O. Hyde presented on often overlooked tax deductions and credits that will expire at the end of 2011, retirement savings opportunities, and alternative minimum tax strategies. Some key deductions set to expire include deductions for state and local sales taxes, energy efficient home improvements, and education expenses. Retirement plan options for small businesses discussed were 401(k), SIMPLE, and SEP plans. The alternative minimum tax can apply to individuals making $150,000-$500,000 and denies many deductions.
Did your business (or your job) pay you over $112,125 last year? If so, you are in the top 10% of earners who paid 70% of all Federal income taxes. Perhaps you are overpaying your fair share! During today’s webinar, we will discuss these four important ways in which you can reduce your tax liability. Often-overlooked tax deductions Tax deductions set to expire 12/31/11 Retirement savings opportunities Alternative minimum tax strategies
Other than retirement plan-related deductions (which we will discuss later), there are a number of often-overlooked tax deductions I’d like to briefly discuss today.
A number of Federal tax provisions are scheduled to expire December 31, 2011. While there is still a chance some of these laws may be extended, as there is not less than one month remaining before the deadline, it is prudent to plan as though these will NOT be extended. The so-called “charitable IRA” direct transfer option, first introduced several years ago, is scheduled to disappear at the end of this year. This option is available to those 70 ½ and older, and is limited to 100K per year. The distribution DOES go toward your annual required minimum distribution (“RMD”) requirement. Taxpayers who are extremely generous, or those who are in lower-income brackets, tend to benefit most from this rule, although more often than not it provides at least a small benefit to any taxpayer that qualifies for it. Not all charities qualify as recipients of the charitable rollover- such as donor-advised funds…so be sure to check with the charity you have in mind before initiating the direct transfer. Another targeted deduction which goes off the books at year-end is the ability to deduct state and local sales taxes instead of state and local income taxes. One of the reasons for this law, was that it was expected to stimulate purchases of big-ticket items. Another reason is that it can increase deductions for taxpayers in states such as Alaska, Nevada, Washington, and Wyoming, which have no state income tax.
Remember that a credit is a dollar for dollar tax benefit (subject to limitations of course), whereas a deduction reduces the amount of income subject to tax.
Other QSBS items: 15% rate change up to 28% Must be qualified business (80% active business requirement) Original issue stock $10M lifetime limit
![© Gregory O. Hyde. December 2011 Presenter Information: Gregory O. Hyde, CPA, PFS, CFP ® Pinnock, Robbins, Posey, & Richins, PC 136 East South Temple, Suite 2250 Salt Lake City, UT 84111 Phone: 801-533-0409 Email: [email_address] Website: www.cpaandmore.com This outline is for the purpose of a presentation and the speaker is not engaged in rendering legal, accounting, or professional services to the recipients of this outline. Users of this outline should verify its accuracy before relying on its contents. If legal advice or other professional assistance is required, the services of a competent professional person should be sought.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)