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Rochester/Lapeer Mich. – Nov. 23, 2015 – Don’t let holiday shopping and event planning get in the way of making quick but important financial moves before 2015 comes to a close. Vince Mattina, Jr., CPA and managing partner of Mattina, Kent & Gibbons, P.C. (MKG), a Michigan-based CPA firm, offers some quick tips that can save you money now and reduce your tax bill in 2016.
• Maximize contributions to your 401(k) plan. For taxpayers over 50, an additional contribution of $6,000 can be made before year end.
• Maximize your contribution to your Health Savings Account (HSA). An additional $1,000 contribution can be made for those age 55 and older.
• Purchase and install new machinery and equipment. Place new in-service assets before year end to take advantage of favorable depreciation rates.
• Make both cash and non-cash tax-deductible charitable donations to reduce your taxable income for 2015.
• If you are 70 ½, make sure you have taken your Required Minimum Distribution from your Individual Retirement Accounts (IRA).
• Pay college tuition bills before year end; like charitable deductions, such payments can reduce your taxable income for the year the tuition is paid, not when the semester starts.
• Meet with your financial advisor to determine if any securities with gains you’ve held onto for more than 12 months should be sold in order to pay tax at lower long-term gain rate, or if you should sell investments that are currently at a loss in order to realize capital losses to offset gains. Keep in mind, you cannot invest in those same securities in less than 31 days, otherwise the loss realized would be non-deductible.
“It’s interesting that people are always looking for great holiday deals in their shopping excursions, yet fail to make financial decisions now that can save them far more than a sale item at the local department store,” Mattina said.
About Mattina Kent & Gibbons
MKG is a Michigan-based CPA firm providing audit, accounting, tax and business consulting services to a variety of industries including manufacturing, construction, professional services, governmental, agribusiness and non-profits. To learn more, visit http://www.mkgpc.com.