FOR IMMEDIATE RELEASE
Atlantic County Accounting Firm TTK Offers Year-End Tax Tips
Charitable Contributions with a Twist, Tuition Deductions Just Two Benefits
That May Not Reappear in 2012
EGG HARBOR TOWNSHIP, N.J., Dec. 14, 2011 – Everyone knows that come the end of the year, you can decrease your taxable income by making additional contributions to your IRA. But did you know that if you’re over 70 you can also make direct donations to charity from an IRA tax-free?
That’s just one savvy move taxpayers can make as 2011 draws to a close, and one that may not be around come next year, according to Emily Vu, president of TTK & Associates, an accounting firm in Egg Harbor Township.
“If you don’t need all your required minimum distributions (RMDs), or are planning to give to charity anyway, this is a very good deal, even better than the deduction you’d get for an out-of-pocket charitable donation,” says Vu. “The funds rolled over to the charity aren’t taxed as a regular distribution, so you will keep more money in your hands and there will be more for the charity too.”
As an example, Vu notes that if you gave $10,000 from your IRA to charity through direct rollover, the charity would get the full $10,000 and you’d pay no tax. But if you took the $10,000 out of the IRA as an RMD and paid tax on it at the 35 percent bracket, you’d only have $6,500 left to give to charity. Yes, you’d get a tax benefit for donating the smaller amount, “but it wouldn’t equal what you would save by doing a direct rollover,” she says.
That’s not the only end-of-year move smart consumers can make to decrease their 2011 tax liability. Vu offers the following tips for those of any age, some of which may or may not be available at this time next year:
Vu also notes that two important tax benefits for businesses are due to change significantly at year’s end. These are the 100 percent bonus depreciation for certain types of property acquisitions, which is due to drop to 50 percent; and Section 179 Expensing, which is capped at a high of $500,000 for certain types of property in 2011, but may be capped as low as $139,000 for 2012.
About TTK & Associates
TTK & Associates was founded by Emily K. Vu and provides a full range of accounting services that includes bookkeeping, payroll, tax planning, and tax preparation. TTK specializes in assisting individuals and business owners with tax audits and back tax problems. Its tax professionals will work with the client to resolve tax issues and fight for their right to fair treatment. For more information on TTK & Associates, call 609-484-0005 or visit www.ttkassociates.com.