As fall approaches, the election cycle seems to be putting a freeze on any new tax legislation. This is good news for 2016 tax planning. Included this month is estimated tax information for 2017 based upon the Consumer Price Index. There are also articles on recovering from identity theft and how to save money from long-time suppliers of services. Ideas for small businesses to deduct the cost of event tickets rounds out this month's newsletter.
Preview of Some Key 2017 Tax Figures
Other Key figures:
Caution: Remember, these are early figures using the recently announced Consumer Price Index. Official numbers are released by the IRS later in the year.
Recovering from Identity Theft
There are now millions of victims of the identity theft epidemic. From stolen credit cards to fraudulently filed tax returns, a vast swath of the U.S. is trying to figure out how to repair the damage. To help, the Federal Trade Commission has created a nice tool to work through the recovery process.
Everyone should review the site. Even if you are not currently a victim of identity theft, spend a few minutes reviewing the site. A review now can help you become more aware of the problem and help you understand what immediate steps you should take if this happens to you.
Stop Price Creep
Review your household vendors
One simple idea could save you hundreds in your monthly expenses. It has to do with the tendency for inertia. When you are looking for a supplier of basic services, you tend to shop alternative companies, ask friends for recommendations, and get quotes from alternate choices. After completing this often exhausting work, you sit back and enjoy your new supplier.
What to do. Every two or three years conduct a review of your suppliers. To keep the process manageable, rotate a few vendors each year for this review exercise. The longer you use a supplier without a review, the more important the review becomes. Here are some common culprits for price creep:
It is not only price. Remember, just because your supplier is not the lowest price, there may be other reasons to continue your service. Trust and quality of service should also be considered in your decision making process.
Want to Deduct an Event Ticket?
Things to consider
As an employee, can you ever deduct the cost of a sporting event or other ticket on your expense report? Surprisingly, the answer can be yes, but only if you know and abide by the rules.
The accountable plan
Applying the rules
To apply these expense deduction rules to a sporting event:
As you can imagine, this area of expense deductibility is often the focus for the IRS during a review. If in doubt, please ask for help and clarification on the deductibility of this type of entertainment expense.