As we get closer and closer to the end of the year, the time has come to do some planning to cut taxes; this is done best before the year closes (looking at things next year are usually too late!) With that in mind, here are some things to ask your tax preparer to get ready for tax season; written by Laura Shin in the personal finance section of Forbes: http://www.forbes.com/sites/laurashin/2013/12/10/6-end-of-year-questions-to-ask-your-tax-advisor/2/ We can talk about these and other questions – just give me a call or email me and ask away. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Has been Featured On https://twitter.com/bstonercpa
California CPA Musings: Top Ten Tax Stories of 2013
Ok, Taxpayers, here we go – the editors of AccountingToday have listed their ‘top ten tax stories of 2013′ (say that fast ten times): http://www.accountingtoday.com/gallery/the-top-stories-in-tax-in-2013-68951-1.html I have lots of trouble with tongue twisters myself, but I agree that these are definitely the big tax stories of the year (in addition to the news that tax preparation fees are going to go up this year because of what happened in these stories) so make sure you get your money’s worth when you get your appointment set up. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: Here is How You Can Take Your IRA Before 59 1/2 Penalty Free!
Normally if you are not age 59 1/2 yet and need to take withdrawals from your IRA (Individual Retirement Account), you are subject to a 10% early withdrawal penalty on what you take. But under section 72(t)(2) of the Internal Revenue Code, if you take Substantially Equal Periodic Payments (SEPP) of your IRA, you can escape this penalty. To qualify for this method, you have to do the following: 1. You have to maintain the calculated distribution for at least five years or until you reach 59 1/2, whichever is greater. 2. The distribution has be calculated based on one of the following tables provided by the IRS: the uniform life table in Appendix A of Rev. Rul. 2002-62, the single life expectancy table in I.T. Regulations §1.401(a)(9)-9, Q&A-1, or the joint life and last survivor table in I.T. Regulations §1.401(a)(9)-9, Q&A-3. 3. You have to use one of the three methods in Revenue Ruling 2002-62 to determine what are SEPP payments: the required minimum distribution method, the amortization method, or the annuitization method. 4. You have to calculate interest using any interest rate that is not more than 120% of the federal mid-term rate published in IRS revenue rulings for either of the two [...]