PBMares Accounting Blog

Michael Kennison, CPA , CIT

Recent Posts

Fine-tuning your company’s compensation strategy

Posted by Michael Kennison, CPA , CIT on Jul 6, 2017 11:33:01 AM

 

As a business evolves, so must its compensation strategy. Hopefully, your company is growing — perhaps adding employees or promoting staff members who are key to your success. But other things can spur the need to fine-tune your compensation strategy as well, such as economic changes or the rise of an intense competitor. A goal for many businesses is to provide equitable compensation.

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Topics: Tax Bites, Tax Planning

Are you eligible for the American Opportunity Credit?

Posted by Michael Kennison, CPA , CIT on Mar 28, 2017 11:14:00 AM

If you have a child in college, you may be eligible to claim the American Opportunity credit on your 2016 income tax return. If, however, your income is too high, you won’t qualify for the credit — but your child might. There’s one potential downside: If your dependent child claims the credit, you must forgo your dependency exemption for him or her. And the child can’t take the exemption.

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Topics: Tax Bites, Tax Planning

Now’s the time to start thinking about “bunching” — miscellaneous itemized deductions, that is

Posted by Michael Kennison, CPA , CIT on Aug 29, 2016 4:30:00 PM

Many expenses that may qualify as miscellaneous itemized deductions are deductible only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this “floor.” So now is a good time to add up your potential deductions to date to see if bunching is a smart strategy for you this year.

Should you bunch into 2016?

If your miscellaneous itemized deductions are getting close to — or they already exceed — the 2% floor, consider incurring and paying additional expenses by Dec. 31, such as:

  • Deductible investment expenses, including advisory fees, custodial fees and publications
  • Professional fees, such as tax planning and preparation, accounting, and certain legal fees
  • Unreimbursed employee business expenses, including vehicle costs, travel, and allowable meals and entertainment.
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Topics: Tax Bites, Tax Planning