Tax Tips
- Gifts to Others -
How much can I gift a person and not have to file a Federal Gift Tax return?
You can personally give a person up to $15,000 annually and not have to ever file a Gift Tax Return! A husband and spouse could gift someone a total of $30,000 annually and not have to file a gift tax return either!
Even if you exceed the $15,000 annual exemption, and gift them more, you would need to file an annual gift tax return by April 15th of the year following the year you made the gift. As long as your past and present lifetime gifts do not exceed $11,400,000, this form is merely an informational return and there would be no gift tax due on the transaction!
There are some special rules if you want to contribute up to $75,000 in a year to a 529 plan to help your kids or grandkids with their education! Give us a call if you need more information.
- 401(k) Retirement
Does your employer offer a 401(k) retirement plan at your work?
Are you taking advantage of saving for retirement and simultaneously saving tax dollars when you do so?
You can put away up to $19,500 of your annual earnings by contributing through your payroll deduction into this tax-free savings plan! If you were born before 1971 you can put up to $26,000 annually tax-free!
Does your employer offer a SIMPLE 401(k) plan instead?
You can still put away up to $13,500 tax free and a total of $18,500 if you are over age 50!
Concerned what the cost-benefit would be if you need to withdraw some of the funds you contributed to one of these plans before retirement? Give us a call for more information.
- QBI - Qualified Business Income Deduction
If you are taxed as a self-employed person, or your business is a partnership or S Corporation, you could be eligible for the QBI deduction on your tax return!
How much is it? It can be up to 20% of the net profit for that year!
If I own rental real estate, am I eligible for the QBI deduction?
You can be if are least 250 hours a year of qualifying time are devoted to the rental!
Do I get the deduction on both my federal and state income tax returns?
If eligible, you can get it on the federal return. If you are a resident of New York, you will not get the deduction on the New York return!
This deduction has many “what if’s” about it…not sure?
Give us a call - we can help you determine if you are eligible. We may be able to help create a possible strategy for your business so you become eligible!