DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

Pay attention to the IRS rules for charitable deductions

As the year draws to a close, you may decide to donate cash or property to one or more worthy causes. Besides the satisfaction of helping others, there's another reward for your benevolence: a tax deduction on your 2014 return. But the IRS recommends that you keep the following points in mind:

1. You may only deduct contributions made to a legitimate tax-exempt charitable organization.

Four tips for organizing your finances

In our busy lives, it's sometimes tough to corral our financial records. Bills, paycheck stubs, tax returns, and bank statements can disappear into dusty attic corners and bulging desk drawers. Important insurance policies can hide out beneath bins of holiday ornaments and electrical supplies. Mortgage documents can sneak into old books or ensconce themselves in nooks and crannies throughout the house.

Take the time now to coax those papers out of hiding. Here are four suggestions for getting organized.

The Social Security Administration recently announced monthly social security and supplemental security income benefits (SSI) will increase in 2015 by 1.7%. This increase is based upon the Consumer Price Index over the past 12 months ending in September 2014. In addition, other figures based on the national average wage index will also be changed. A recap of the key amounts is outlined here:

In this issue:

• Don't Make this Mistake
  Caution with car donations
• Holiday Budgeting Ideas
• Time for a Credit Checkup?
• Breaking News:
  2015 Pension Contribution Limits

The Month of November:

•    Conduct Year-End Tax Planning
•    November 27th - Thanksgiving

Don't lose out on the 2014 gift tax exclusion

Time is running out for making 2014 tax-free gifts. You have only a few more months to use your annual gift tax exclusion for this year, or it's gone forever.

Advance projections released for 2015 tax numbers

Each year the IRS is required to make inflation adjustments to hundreds of tax numbers in the tax law. Advance projections of what some of the 2015 numbers will be have recently been published.

Make time for a year-end tax review

Take some time to review your tax situation for 2014 while there are still a few months to make tax-cutting adjustments. With more of the Affordable Care Act going into effect for 2014, both individuals and businesses will find that an investment in a year-end review could make a significant difference in their final tax bill.

Avoid these six mistakes in selling your business

Most entrepreneurs eventually think about selling their businesses, whether as a prelude to retirement or to pursue other activities. In doing so, they often underestimate the effort required for a satisfactory outcome and overestimate the value and salability of their enterprises. If you're contemplating selling, here are some common mistakes to avoid.

1. Overestimating the value of your business.

Are you prepared for this new IRS Form?

There will be a new tax form filling mailboxes beginning January, 2015. This Form 1095-A is a Health Insurance Marketplace Statement. If you participate in the Healthcare Marketplace, you will need this new form prior to filing your tax return. Here is what you need to know.

Background

Each year the tax-filing season begins with the receipt of forms required to file your tax return. Employees receive W-2s from their employers. Individuals receive various 1099 forms for reporting interest, dividends, capital gains and independent earnings as sole proprietors. If you used the Healthcare Marketplace to purchase health insurance, you will now need your 1095-A form to file your tax return.

Important reminder for employers - HEALTH CARE BENEFITS

A reminder to employers: Effective January 1 of this year, you may no longer

Surprise! The Mutual Fund Tax Trap

Too often taxpayers receive a tax surprise at year-end due to actions taken by a mutual fund they own. What can add insult to injury is the unsuspecting taxpayer who recently purchases the shares in a mutual fund only to be taxed on their recent investment. How does this happen and what can you do about it?

Tax surprises

Reducing the Savings Account Tax Burden

Money you place in traditional savings accounts is already taxed by both the Federal and State governments. These after-tax deposits lower the amount you have available for savings. Lower deposit amounts also mean lower earnings potential. Then Interest earned on your savings is also taxed. What can you do to lessen this tax burden?

In this issue:

• Preview of Some Key 2015 Tax Figures
• A Cheaper Hotel Stay
• Business Use of your Home
• A tax deduction under your nose?
• No Such Thing as a Free Lunch?

The Month of May:October 1st:

•     October 1st:  SIMPLE IRA plan establishment due
•     October 15th:  Extension tax return filing deadline
•     October 31st:  Halloween

Businesses that want to adopt a SIMPLE retirement plan for 2014 generally have until October 1 to do so.

Don't incorporate your business without first checking the long-range tax and nontax considerations. Call us for details.

If you hold a capital asset for more than one year, your gain or loss is long-term. If held for one year or less, it is short-term.

Almost everything you own and use for personal or investment purposes is a capital asset and taxable if sold at a gain.

You can't deduct job hunting expenses if you are looking for your first job or for a job in a different line of work.

If you moved this summer, be sure to update your address with the IRS. Use Form 8822 "Change of Address."

Social Security: know the variables . Do your math

Determining the best time and best way to take Social Security Benefits can make a big difference in the amount you receive over the balance of your lifetime. Your personal Social Security benefits strategy often has no one right answer. What is prudent, however, is running calculations prior to making your benefit decision. Here are some things to consider.

Full retirement age. Your full Social Security Retirement benefit can be claimed when you reach your target retirement age. This is age 66 for those born between 1943 and 1954. Those born after 1954 have their full retirement age increase by two months per year until full retirement age becomes 67 years old for those born in 1960 or later.

The Coverdell ESA. Lost in the mix?

The tax code is filled with tax breaks to offset the cost of education. This includes programs like the Lifetime Learning Credit, the American Opportunity Credit, the Saver’s Credit, student loan interest deductibility, and the on-again off-again Tuition Deduction. Lost in all these options is the long-standing Coverdell Education Savings Account (ESA). Is it worth considering in your educational funding mix?

No, you're probably not saving enough

How much money did you save last year? If you didn't save at least 10% of your earnings, you didn't save enough. If your savings in 2013 fell short, the only solution is to take charge of your financial future right now and start saving more money.

Saving money doesn't have to be hard work. In fact, many successful savers have found simple ways to cut spending and increase their savings. Here are some tips to help you get started and stay on track.

Let the tax man help with child care costs

Are you a working parent looking for ways to ease the burden of child care expenses? There are several tax-saving strategies available to you.

First, there's the dependent care tax credit, a direct reduction to your tax liability.

Final Deadline for 2013 Personal Tax Filing!

October 15, 2014 is fast approaching, therefore the deadline to file your personal tax returns that were placed on extension is coming!