What You Should Do Before the Year Ends

03ce1a5f7c4d9d332e92_tepp.jpg
David Tepp
03ce1a5f7c4d9d332e92_tepp.jpg

Are you in the midst of manic buying, wrapping, eating, drinking and being merry? It might not be top of mind, but there are just a few financial matters that you ought to consider before the ball drops in Times Square.

For the first time in a while, there are reasons for businesses and consumers to feel optimistic about future tax rates. It is tempting to think that with the incoming President, a tax rate cut may be imminent, but until a law is passed it is purely conjecture. Accordingly, use your best judgment and assume taxes will be consistent for now.  Here are some good ideas:

#1        Look to sell investments in your taxable accounts (not retirement accounts such as IRA’s or 401K’s) that have generated a loss.  These losses can be used to offset capital gains and a small amount of ordinary income, such as salary.  If you want to ultimately keep the investment, you can repurchase after you sell but remember to wait 30 days.   If you don’t, it will be considered a “wash sale” and you won’t be able to deduct the loss.

Sign Up for E-News

#2        This is an ideal time to maximize your retirement plan contributions, if you have not already done so.  Contributions to 401k, 403b and similar plans yield valuable deductions.  Keep in mind that IRA contributions may or may not be deductible – contact your CPA for further guidance.

#3        If you have a medial plan that includes an HSA savings account, be sure to maximize those contributions as well.  For 2016, you can contribute up to $3,350 if you are single and $6,750 if you are married.  An additional $1,000 can be contributed if you are 55 years old or older.

#4        Unfortunately, the state of New Jersey does not allow you to deduct 529 education plan contributions.  However, if you have out-of-state sourced income, there may be an opportunity here.  Consult with your CPA for further information.

#5        And, of course, pay expenses that qualify as itemized deductions:

a)      Charitable contributions – check out our recent article on this topic: https://www.tapinto.net/towns/westfield/columns/a-little-bit-of-knowledge-with-david-tepp/articles

b)      State taxes – if you have to pay any estimated taxes, pay the states before December 31 and you can deduct it in 2016.

c)       Medical expenses – current laws make it difficult to deduct these expenses on your Federal return but you may have a fighting chance for your state return including New Jersey.

The more complex your personal financial situation, the more options may be available to you.  You would be well-served to connect with your CPA and financial planner before year end.

From all of us at Tepp Accounting Services and Tepp Financial Planning, we wish you a very Happy, Healthy and Prosperous 2017!

David Tepp, President of Tepp Financial Planning is certified in Financial Planning and a licensed CPA in New York and New Jersey. He can be reached by email at dtepp@teppfp.com and by phone at 908-301-1200.  His company is located at 111 Quimby Street, Suite 1, Westfield, NJ.  For further information, please visit:  www.teppfp.com

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Westfield

County of Union to Fly Rainbow Flag for the First Time on June 4

May 23, 2018

ELIZABETH, NJ — A rainbow flag will fly for the first time at the Union County Courthouse in recognition of June as LGBTQ Pride Month.

The Union County Board of Chosen Freeholders has announced they are holding a public Pride Flag Raising Ceremony for Monday, June 4 at 1 p.m. on the steps of the historic Union County Courthouse on Broad Street in Elizabeth.

“Raising the rainbow ...

Open Letter to Dr. Dolan & Westfield High School Administration About Graduation

May 23, 2018

Editor's note: The following is a response to a letter sent to parents from Westfield High School Principal Derrick Nelson telling parents that, due to the potential of Kehler Field being re-turfed, this year’s graduation will be held on the back field behind Westfield High School, with the inclement weather location the varsity gymnasium. The letter tells parents ...

Upcoming Events

Carousel_image_63321ee14331a27d512a_spb-4923_newsletter_may_24

Thu, May 24, 11:00 AM

TD Bank Ballpark, Bridgewater

Somerset Patriots vs. Sugar Land Skeeters ...

Sports

Sat, May 26, 9:00 AM

Miller-Cory House Museum, Westfield

Aunt Carrie's Attic Sale

Other

Carousel_image_8cd695f8ea6f03939eb0_mini_magick20180405-26868-1g02rrv

Mon, May 28, 9:00 AM

Westfield

Memorial Day Parade

Westfield Police Blotter: Package Stolen from Porch, Shoplifting & More

May 23, 2018

May 15, 2018 11:40 a.m.

A resident of Vernon Terrace reported the theft of a package from their front porch on May 12, 2018 between 11:40 a.m. and 5 p.m.

 

May 19, 2018 1:16 p.m.

Rhonda Boston, age 32, of Newark, NJ was arrested on the strength of an outstanding warrant for her arrest from Westfield Municipal Court in the amount of $580. Subject was picked up at New Jersey State ...

Westfield Teacher Receives Scholarship from Friends of Westfield Memorial Library

May 23, 2018

Rachel Kennedy, library media specialist at Franklin School in Westfield, has been named the recipient of a scholarship awarded by the Friends of Westfield Memorial Library. The monies will be used for Kennedy to enroll in a Rutgers graduate course focused on writing proposals and managing grant projects.

Kennedy sad she hopes to follow up her coursework by seeking funding to enhance ...

There are Really 3 Reason Buyers Choose the Homes They Buy

Susan Massa Broker Associate CRS SRES ABR 

Keller Williams Premier Properties 188 Elm St Westfield NJ 07090

488 Springfield Ave, Summit, NJ 07901

908-400-0778 cell

www.summitwestfieldhomes.com     www.NJHomeshowcase.com

susan@susanmassa.com

Dedicated to Excellence, Dedicated to You “Your Home Your Realtor”

download my smart phone app ...

Ask Maria: How can I help my son? 

Q: My son's best friend's mom just passed away. I am concerned for my son and don't know what to do for him. He is distraught. How can I help my son? 

Response:

Grief is a normal and natural reaction to the death of a loved one. No two people grieve the same, even in the family. I am certain that your son’s friend and mom are like family to your son. Losing his ...

Dog Missing from Fanwood Home

UPDATE: Reunited with owner!

ORIGINAL POST: Lexi was seen north side of Fanwood Thursday. She's 25 lbs., tall and looks like a fox.

Lexi is friendly and was wearing a collar with a tag. Call 732-259-5570 if you spot her.

IRS Grants Relief for Taxpayers Affected by Reduction of Maximum Deductible HSA Contributions

The IRS recently announced relief for taxpayers with family coverage under a High Deductible Health Plan (HDHP) who contribute to a Health Savings Account (HSA).

 

For 2018, taxpayers with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution.

 

The annual amount had been reduced to $6,850 for 2018 under the Tax Cuts and Jobs ...

TAPinto Featured Franchisee: Steve Lenox of TAPinto Paterson

This week's feature will focus on TAPinto Paterson's franchisee, Steve Lenox. Find out how the current owner of a public affairs firm went from a former State Director for Senator Frank Lautenberg to a proud TAPinto franchisee for New Jersey's third largest city.

 

Q. When did you join TAPinto.net?

I joined TAPinto.net in September, ...

Eight Westfield Student Vocalists Accepted into 2018-2019 All-State Choruses

Eight student vocalists from Westfield High School have been accepted into the 2018-2019 All-State Choruses.

Performing with the 2018 All-State Mixed Chorus in November will be Charlotte Geary, Zachary Lemberg, Joseph Maldonado, Vincent Mora, Nicole Player, and Matthew Siroty. The Mixed Chorus will perform at the New Jersey Education Association (NJEA) Convention in November and at the New ...

‘Chambers USA 2018’ Recognizes John Schmidt Among List of America’s Leading Lawyers for Business

Lindabury, McCormick, Estabrook & Cooper is pleased to announce that John H. Schmidt has once again been recognized by “Chambers USA” in their annual list of leading lawyers for business. Chambers and Partners, which produces “Chambers USA,” is a client referral organization that researches and subjectively ranks attorneys and law firm practice groups nationwide ...

'Turning Off the Morning News' brings comic twist

‘Turning Off the Morning News’ tackles today’s issues with a comic twist

By Liz Keill

PRINCETON, N J – Despite the late night comics, no one quite captures the insanity of the political/social status world like Christopher Durang.

His latest play, “Turning off the Morning News” hit the ground running.  John Pankow as Jimmy addresses the audience, ...

SURVIVING A STROKE: Quick Medical Response Gives Mom Her Life Back

Carotid artery dissection. It’s one of the most common causes of stroke in younger adults.

And while you might not associate the word “stroke” with younger patients, the condition – if not treated immediately – could lead to paralysis and even death.

Lindsey Singh can attest to the importance of immediacy. The 31-year-old mother of two from Flanders experienced ...

Capitalist or Communist?

Karl Marx may have been the pioneer, but many other Jews were also involved in the struggle for communism, particularly in the early days of the Russian revolution. Personally, I don’t think that we have any apologies to make for this phenomenon. Having suffered unbearably under successive oppressive regimes, many of those political activists genuinely thought communism would be better ...

Stocks Can Rise in a Rising Interest Rate Environment

Investors remain concerned about the potential impact of higher interest rates on stocks. In their most recently released minutes, the Federal Reserve Open Markets Committee indicated the US economy is on solid footing and the economic conditions warrant continued gradual increasing of interest rates. This set off a sale in the stock and bond markets as investors began pricing in a fourth ...

AtlantiCast

AtlantiCast: Episode 15

On this week’s AtlantiCast, learn some important tips for controlling and avoiding diabetes from an Atlantic Health System expert, see how Atlantic Health is advancing cutting-edge research, hear what’s being done to keep health care environmentally friendly and much more!

 

Obituaries

Donn A. Snyder, 88, died at home on May 8 in Southern Shores, NC, where he was a resident for ...
Read more

Suspect Charged in Fatal North Plainfield Hit-and-Run Fled Country, Prosecutor Says

May 22, 2018

NORTH PLAINFIELD, NJ – A 36-year-old suspect charged in the hit-and-run death of a pedestrian May 15 has fled the country, according to Somerset County Prosecutor Michael H. Robertson.

Charges have been filed against Mario Infante, age 36, of New Street, Plainfield, following an investigation by detectives from the Somerset County Prosecutor's Office and North Plainfield ...