Each year Congress changes provisions in the laws affecting taxpayers. Joe Michaels, the leader of our law firm’s tax practice, provides us with an annual update and sends out 75 last-minute tax savings tips. I thought I would share Joe’s wisdom and holiday message with you (please see below).
I wish you a safe and happy holiday season and a prosperous 2016.
Ray
Raymond J. Dowd
Partner
DUNNINGTON, BARTHOLOW & MILLER LLP
250 Park Avenue
New York, New York 10177
Telephone: 212-682-8811
Facsimile: 212-661-7769
Email: rdowd@dunnington.com
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Season’s Greetings!
As the year comes to a close, so does the period
for tax planning for the year 2015. I have composed a
memorandum entitled “75 Last Minute 2015 Year-End Tax Savings Tips” that you
may find to be helpful in doing some last minute 2015 income, gift and estate
tax planning, as well as be of assistance in preparing your 2015 federal, state
and local income tax returns and planning for the coming 2016 year. It
may be accessed by clicking here. The memorandum is interactive in the sense that
if you “click” on a subject in the Index, it will take you directly to that
subject.
The first three introductory pages of the
memorandum review some overall income, estate and gift tax provisions and some
changes that became effective in 2015, as well as reminders regarding certain
issues. The top federal income tax bracket remains at 39.6% for 2015 and
2016, the maximum rate of tax on qualified dividends is 20% for 2015 and
2016, the maximum Federal rate on most long-term capital gains is 20% for 2015
and 2016 (28% on the sale of “small business stock” and “collectibles,” which
include art work, coins, and stamps), interest income is taxable at your
ordinary Federal rate of tax (there is no reduced rate of tax) , and the
Federal gift tax annual exclusion remains at $14,000 for 2015 and 2016;
however, the lifetime federal gift/estate tax/generation-skipping tax
exemption rises from $5,430,000 to $5,450,000 effective January 1, 2016.
The 3.8% Medicare tax on high earners’ investment income and the additional
0.9% Medicare tax added to the 1.45% already paid by a high earning employee on
his/her compensation and the earnings of “highly paid” self-employed
individuals remain in place. The New York estate tax exemption increases
again on April 1, 2016 as described in the memorandum. .
These introductory pages also advise you that as
of the date of this memorandum, there are some 50 tax provisions
(including Section 179 enhanced expense deductions, enhanced bonus
depreciation, tax-advantaged charitable distributions from certain IRA’s,
and research and other tax credits) that have not been extended to 2015.
Congress may extend these credits to 2015 and beyond, so please remember to
consult with your tax advisor in future months to determine whether all or some
have been extended.
Section 75 of this memorandum includes
a summary of the Patient Protection and Affordable Care Act of 2010, of which
most provisions are now in effect, as well as a description of some Offshore
and Foreign Tax Provisions enacted in prior years but which impact 2015 and
future years.
This Memorandum is 56 pages in length.
If you are unable to print this memorandum on your printer, I will be happy to
mail you a copy if you send me an email requesting one. If you have
any questions regarding any of the income, gift or estate tax planning ideas or
other provisions summarized in “75 Last Minute 2015 Year-End Tax Savings Tips,”
please let me know.
Best wishes for a Happy Holiday Season and a Happy New Year.
Warmest Regards,
Joseph Michaels IV
Partner
Dunnington, Bartholow & Miller LLP
was selected as a 2014 Top Ranked Law Firm for Intellectual Property by
Corporate Counsel/ALM/The American Lawyer. Dunnington is a full-service
law firm providing corporate, litigation, intellectual property, real estate,
taxation, immigration and estate planning services for an international
clientele. Find out more at www.dunnington.com.
www.dunnington.com
Copyright law, fine art and navigating the courts. All practice, no theory.Copyright Litigation Handbook (Thomson Reuters Westlaw 2014-2015) by Raymond J. Dowd
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