Winter 2017 Newsletter
January 2, 2018
Dear Clients & Friends:
We hope that you enjoyed the holiday season and were able to spend time with your family as we head into the New Year. As 2017 has come to an end and a new year begins, it’s important to think about tax planning and the various tax rules, tax breaks and deductions that could affect you. If you find a minute during the Holiday hustle, please read the enclosed newsletter.
In the newsletter, you will find details on the various natural disaster relief tax codes available. Did you know that if you’re an unlucky victim of a natural disaster, you may be able to take an itemized deduction for part of your loss?
If you’re an owner in a business with multiple owners, please read page 3 of the newsletter. This page covers the importance of a buy-sell agreement. A buy-sell agreement is basically a will for the business owners that describes how assets and other business interests will be distributed should an owner leave the business or in the event an owner becomes disabled or passes away.
We all have New Year’s resolutions. The back page of the Newsletter offers goals for expanding your wallet. Creating a financial strategy and sticking to it is a great way to start of the New Year.
The Affordable Care Act mandates are still effective for the tax year 2017. The Affordable Care Act requires that every individual is required to maintain at least the minimum essential health insurance coverage or be penalized on your income tax return. The penalty for not having insurance in 2017 is either 2.5% of your income or a flat fee of $695 per adult and $347.50 per dependent.
If you earn more than $100,000 a year, it’s important to note that the wage base for withholding social security tax from wages has increased from $127,200 to $128,700 for 2018.
As a reminder, for individuals, if you have estimated tax payments for the 2017 tax year, please make sure you have made your payments, including the last installment due on January 16. If you believe your taxable income has changed for 2017, please contact our office today so we can revise your estimates.
In firm news, you may have noticed one or more of us are out of the office occasionally in December. We were attending seminars and keeping abreast of any new tax provisions for 2017. For 2018, there is a brand new set of rules to digest thanks to the new tax bill enacted just before Christmas. We are attending a tax seminar the first week of January to get the inside scoop of what it is all about and how it will affect your situation.
We would like to take a minute to thank you for your past patronage and we look forward to assisting you with your future tax and financial needs.
Happy New Year,
Starkey & Company, PA