Dixie Chan Tax and Business Services

If you have any questions regarding the new tax laws please feel free to contact me. [email protected]

Here is a video to share with anyone who worries about the IRS calling. ps...they will never call you. It is always a scam.

There is still time to file for an extension if you have not yet filed your 2015 income taxes. Feel free to contact me if you need this done. No charge.

2016 is almost here! But there is still time to lower your 2015 income tax bill. Below are four last minute transactions to consider. 1. Make a charitable donation. If you itemize your deductions you still have time to make a tax deductible charitable donation for 2015. If the charity allows you to donate online, you can do it right up until the last second of the year. If the charity doesn’t accept online payments, make sure you get the check in the mailbox by 12/31/2015. 2.... Make an IRA contribution. If you qualify, an IRA contribution is a great way to lower this year's taxes: maximum contribution is $5,500 ($6,500 if you are 50 or older). You can contribute to an IRA up to tax filing day, April 15, 2016. Most other tax-saving strategies must be in place by December 31. While IRS rules on IRA contributions vary, you can generally deduct the full amount of an IRA contribution. If you and/or your spouse are covered by retirement plans at work your contribution might be limited based on your income. 3. Take capital losses. If you lose money on a capital investment, such as a stock, you can use that loss to reduce your taxes. But you’ll have to sell the stock at a loss first. Once you realize a loss, you can use it to offset any capital gains you have in 2015. By offsetting of your capital gains, taking capital losses can wipe out a portion of your tax liability. If you have more capital losses than gains, you can use up to $3,000 of that excess loss each year to offset your ordinary taxable income 4. Bunch expenses. If you own a business, you can take a deduction for a wide range of business-related costs. If you want to reduce this year's income taxes, bunch your expenses as much as possible into 2015. For example, if you regularly spend $5,000 per month to buy supplies, consider buying $15,000 worth at year-end to get you through the next three months. By making a bulk purchase at year-end, you'll get a deduction in this tax year for that business expense. Don't hesitate to contact me if you have questions about these or other tax saving ideas. And have a very Happy New Year!