A Chamber View

Curtis MacRae, Curtis Funding Group

1) Set aside some time to plan before year-end
Defer some income, if you can, and if it won’t put you in a higher bracket next year.  Consider all your business options and talk to your CPA to get his/her opinion.  Do this BEFORE year-end, so you’re ready for 2017. 
 
2) Accelerate deductions
Look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, pay deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year, instead of paying them in early 2017, making a difference on your 2016 return.
 
3) Bump up withholding to cover a tax shortfall
If you might owe additional federal income tax for the year, especially if you may be subject to an estimated tax penalty, consider bumping your withholding or paying some additional estimated tax to cover it.
 
4) Maximize retirement savings
If you haven’t already contributed up to the maximum amount allowed, for your tax-deductible IRA or 401K program, consider doing so by year-end.
 
5) Take any required distributions
Once you reach age 70 ½, you generally must start taking required minimum distributions (RMDs) from traditional IRAs and employer-sponsored retirement plans. If you don’t take them on time, the financial penalty can be severe.
 
6) Weigh year-end investment moves
If you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some of those gains by selling losing positions.
 
7) Acquire business equipment prior to year end
Section/179 of the tax code allows you to deduct up to $500,000 worth of equipment for the year you acquire that equipment.  As a service to Chamber members, my company has published a document that addresses this program, and announces a program to support the Branch County Coalition Against Domestic Violence.  You can call me to get a copy, or find it at:  https://goo.gl/onWQou

8) The Overtime Rule – as an employer, you need to know this

On May 18, the U.S. Department of Labor passed a new overtime law that will make 4.2 million exempt workers non-exempt. The changes affect the white-collar exemption and which employees can receive overtime.
The new overtime law increases the salary threshold, making fewer employees exempt from overtime. Before the rule changed, the salary threshold was $455 per week, or $23,660 per year, and starting December 1, the new law raises the threshold to $913 per week, or $47,476 per year. The increase is a little more than double the previous salary threshold.  If you don’t understand this law, and you have employees that are impacted, it could cost you.
___________________________________________________
That’s my list.  Hopefully, one or two of these tips will help you prepare your business for 2017, or save you a few bucks in 2016.  And remember, your Chamber is here to help you.
 
Curt MacRae was the 2014-2015 chair, of the Coldwater Area Chamber of Commerce Board of Directors.  He owns Curtis Funding Group (888-510-1355 – www.curtisfunding.com), a Chamber member that provides equipment leasing & financing funds for- businesses to acquire new/used equipment. His office is located in the Chamber Building.  
--  30  --