Category Archives: Year-End Tax Planning

By Jill Nagy

“Keep calm. Stay the course,” advised financial advisor Dan Hazewski Sr. of Legacy Planning Partners in Glens Falls regarding investment in the stock market as the end of 2018 draws near.

“There is nothing abnormal going on,” he said on a day when late October’s falling stock market was recovering. “Volatility is a constant.”

“When the market was down, I went out and bought things for my clients. If you make good investment choices and you leave them alone, they’re going to grow,” he advised.

He said the economy is fundamentally sound.

“I don’t give credit to either Obama or Trump,” Hazewski said, “but to American ingenuity and creativity. Developments like technology, artificial intelligence, and robotics are driving our economy.”  

He noted, however, that Obama did not get enough credit for “riding us through the storm” after the 2008 recession.

“The economy is as strong as it has ever been and the best thing to do at this point in time is nothing,” Hazewski urged. Where he sees the normal gyrations of the investment market, “pundits like to find reasons” for concern.

By Stephen Kyne

The end of another year is rapidly approaching, and just as you cross items off your checklist and prepare your home for the winter, it’s also important to complete maintenance items to prepare your finances to close-out 2018.

An often-overlooked task is to review your beneficiary declarations each year. Families grow, as new members are added, and shrink with death and divorce, which means that beneficiary and transfer-on-death declarations can easily become outdated and no longer reflect your true wishes. 

Since these declarations are a matter of contract, they will overrule what your Will may say. So, even if you’ve updated your will to exclude an ex-spouse, but you left them as beneficiary on your IRA, your new spouse won’t be able to inherit those assets, but the ex will, and it can’t be challenged in probate. 

Another piece of financial housekeeping is to begin to gather documents you’ll be needing just after the new year to prepare your taxes. Compile receipts for medical bills, tuition payments, child care and charitable contributions, among others.

While many of us will no longer be able to itemize deductions due to the new tax law, there are credits for things like child care and education expenses which you may still be eligible for. For those with large medical bills, or who have been particularly philanthropic this year, you may still be able to itemize, so it is important to have those receipts handy.

By Judy A. Cahee

Managing your taxes is one of the most stressful aspects of being a small business owner. Waiting until the last minute will only make the process worse and can often result in a larger tax bill in the long run. Reduce your stress by planning in advance and implementing top tax saving tips now.

First and foremost, now is the time to contact your tax advisor and learn how the Tax Cuts & Jobs Act impacts your business. 

Although the law was enacted in December 2017, many provisions are effective beginning with the 2018 tax year. A lot has changed. Don’t make the mistake of waiting until December to understand how the changes impact you or to identify tax planning moves that can reduce your tax bill. 

Here are some key considerations:

Choice of entity review.

There are two major changes that impact whether the type of entity you own remains the best choice for tax purposes. Changing the classification of your business takes careful planning.