1. MAKING THE MISSION POSSIBLE: UNCOVERING THE LATEST YEAR-END TAX PLANNING STRATEGIES MARTIN S. FINN, CPA, JD, LL.M. LAVELLE & FINN, LLP MARTY@LAVELLEANDFINN.COM WWW.LAVELLEANDFINN.COM COPYRIGHT 2015 © LAVELLE & FINN, LLP

2. TAX RATES FOR 2015 Top Ordinary Income Tax Rate – 39.6% Capital Gains/Dividends Rate – 0% (10% and 15% brackets), 15% (25%, 28%, 33% and 35% brackets) or 20% Alternative Minimum Tax Rate (“AMT”) – 26%/28% Medicare Surcharge – Net Investment Income Tax (“NIIT”) – 3.8% Additional Medicare Wage Surcharge – 0.9% COPYRIGHT 2015 © LAVELLE & FINN, LLP

3. “HIGHWAY TRUST FUND” ACT – 7/31/15 Mortgage reporting requirements 6-year Statute of Limitations Tax return due dates Basis consistency COPYRIGHT 2015 © LAVELLE & FINN, LLP

4. SAME SEX MARRIAGES Windsor and Obergefell Legally married for tax filing purposes COPYRIGHT 2015 © LAVELLE & FINN, LLP

5. TAX EXTENDERS BILL Nothing yet “Extenders” at risk Sales tax deduction Educator’s expenses Charitable contribution of IRA Expanded Section 179 deduction Special “bonus” depreciation COPYRIGHT 2015 © LAVELLE & FINN, LLP

6. NYS FY 2015-2016 BUDGET No major income tax changes Extends charitable deduction limitation for 2 years Estate tax technical corrections COPYRIGHT 2015 © LAVELLE & FINN, LLP

7. YEAR END PLANNING IDEAS Basic Concepts Know Your Tax Bracket – 2015 & 2016 Time Value of Money Income Character AMT COPYRIGHT 2015 © LAVELLE & FINN, LLP

8. TRADITIONAL YEAR END PLANNING Defer (Accelerate?) Income Year end bonuses Retirement plan distributions Delay Roth conversions Defer billings and collections Postpone sale of appreciated assets Postpone US Savings bonds redemptions COPYRIGHT 2015 © LAVELLE & FINN, LLP

9. ACCELERATE (DEFER?) DEDUCTIONS Prepay bills Bunch itemized deductions Charitable deductions Harvest capital losses before year end COPYRIGHT 2015 © LAVELLE & FINN, LLP

10. NIIT PLANNING Monitor and document time spent on “business” activities Consider investment alternatives Make estate/trust distributions before year end COPYRIGHT 2015 © LAVELLE & FINN, LLP

11. RETIREMENT PLANS Maximize current year tax-deferred contributions Consider Roth conversion “Back door” Roth IRA Adopt new retirement plan for 2016 before year end COPYRIGHT 2015 © LAVELLE & FINN, LLP

12. BUSINESS PLANNING Equipment purchases Tangible property rules Cost segregation study Year end business meetings COPYRIGHT 2015 © LAVELLE & FINN, LLP

13. MISCELLANEOUS PLANNING Health Savings Account - “HSA” Flexible Spending Account - “FSA” Income tax payment planning Planning with kids COPYRIGHT 2015 © LAVELLE & FINN, LLP

14. YEAR END ESTATE TAX REDUCTION PLANNING Annual exclusion gifts Stepped-up basis v. estate tax reduction Valuation discounts COPYRIGHT 2015 © LAVELLE & FINN, LLP

15. Copyright 2015 © Lavelle & Finn, LLP Martin S. Finn, CPA, JD, LL.M. 29 British American Boulevard Latham, NY 12110 518-869-6227; Fax: 518-869-0572 188 Church Street Saratoga Springs, NY 12866 518-584-6300; Fax: 518-584-5673 Marty@lavelleandfinn.com