Loreen Huddleston CPA

11/21/2022

Some big changes to retirement savings detailed at this IRS site. Good read…

Tax Tip 2022-178, November 21, 2022 — The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 - up from $20,500 for 2022. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs, and claim the ...

02/21/2020

I was asked by the Catholic Community Foundation to write this article. It is from the heart, as I believe many people can benefit from the strategic planning opportunities Donor Advised Funds can provide. And I believe in the mission of this foundation.

Read this article by Loreen Huddleston CPA about why she recommends DAFs from the Foundation to her clients
https://cfoscc.org/2020/02/19/donor-advised-funds-cpa-perspective/

02/27/2019

This is a good article that highlights the importance of "death planning" and what to do if you inherit an IRA (Individual Retirement Account).
Reach out to the professionals who serve you to get good advice so you do not inadvertently cost yourself additional taxes.

Over the next 25 years, baby boomers will pass to their children a mind-boggling $68 trillion — the biggest generational wealth transfer ever. Here's how those lucky heirs can keep the taxman at bay.

08/13/2018

This is a great time of year to check your withholdings and estimated taxes. The next estimated tax due date is September 17. The federal government automatically reduced your withholdings due to the tax cuts.
If not enough tax is withheld or paid in advance, you could be hit with underpayment penalties.
Contact me to review if you have any uncertainty as to the adequacy of your withholdings or estimated taxes, as your income and deductions could change during the year.

07/03/2018

From Santa Clara County Supervisor, Mike Wasserman. If you are not eligible for this low income housing program, perhaps your grown children or friends are. Pass this on.
"In June, the County Board of Supervisors unanimously approved $25 million to finance a new first-time homebuyer down payment loan program. The funds will assist approximately 250 households in the first five years of the program by providing deferred loans for down payments of up to 17% of a home’s purchase price. The funds are part of the 2016 Measure A $950 million affordable housing general obligation bond that was approved by 68% of voters. This is just one of the many programs that the County has launched to address our region’s housing crisis. We also recently approved funding for housing developments that will provide 461 new housing opportunities for low income households. For more information, call the Housing Trust of Silicon Valley -- our partner for the program -- at (408) 436-3450, ext. 234."

04/18/2018

The IRS extended the tax deadline until tomorrow (4/18) due to the IRS e-file and online payment systems crashing today. Get your tax returns filed tomorrow if you didn’t get it filed today. California is giving a similar extension.

04/17/2018

Happy Tax Day!
If you haven’t filed your tax returns, go to www.irs.gov and download Form 4868. Complete the form and mail it to the IRS along with a check for the amount you think you might owe. It will eliminate late filing penalties and reduce other potential penalties. Instructions are available on that site as well.

The Internal Revenue Service is the nation's tax collection agency and administers the Internal Revenue Code enacted by Congress.

01/19/2018

The new tax law is very complex. For some taxpayers, their tax returns will become much more simple. With the increase in the standard deduction for individuals, fewer people will be itemizing deductions. This opens up some tax planning opportunities that may be beneficial to explore.

For businesses, there are several new provisions--some good and some not so good. There is a new "deduction" that will apply to certain pass-through income, including some income earned by sole proprietors, as well as net rental income. This could be a significant benefit to many taxpayers, but not for all, as there are restrictions.

One important note for businesses is that Entertainment expenses will no longer be deductible (no more deductions for taking a client to a Sharks game, for instance). It would be a good idea to begin segregating in your accounting records Entertainment from business Meals, as business meals are still 50% deductible. The limit for writing off business assets was increased, which is good. California will probably not conform, which is not so good.

I will be exploring planning opportunities with my clients. If you have questions about various strategies you may employ, let's talk.

12/20/2017

New tax law for 2018 is settled and will soon be signed. It is flawed in many ways, but the hope is that the economy will be spurred into greater growth.
For us, we have work to do. We may need to take last minute action to pay more state income and property taxes this year, as we will see the loss of a great portion of the deductions for those taxes next year. Unfortunately, the law states we cannot take a deduction for prepayment of 2018 state income tax.
This week I am booked, but contact me if you want to review your income and deductions next week to determine if you would benefit by taking action by 12/31/17.

10/24/2017

It has come to my attention that my name is being used by an email spoofer. DO NOT open email from me that includes a link unless you are expecting something from me. This is good advice regarding all emails from anyone. Check the email address by hovering over the name. If it is not the email address you know for that person or company, delete the email!

10/23/2017

As we head toward the end of another calendar year, we should consider actions to reduce your 2017 tax burden, as well as look to the following year. With the potential of tax reform in the offing, such planning is difficult, but not impossible.

This is a good time to reevaluate your financial situation. Should you max out your 401k plan contributions? Is this a good time to sell stocks (ask your financial advisor, then consult with me about the tax impact so you can lessen the blow of the tax burden)? Should you pay that second property tax installment before the end of the year or wait until April? Should you consider a Donor Advised Fund or other charitable contributions before the end of the year? Should you prepay your office rent to pull that deduction into the current year? The answers are not always as straight-forward as you may think.

What are your questions? Feel free to post a general question. If you would like to schedule an appointment to speak privately, please send an email or call me. I look forward to assisting you.

10/03/2017

STASH YOUR CASH! As I watched the news of people in Puerto Rico driving around, using precious gasoine, looking for a functioning bank ATM, then standing in long lines to get cash, I was reminded of some great advice I was given.
Keep a few hundred dollars in cash in your home as part of your emergency preparedness planning. Make sure you have some smaller bills because many places will not be able to cash $50 or $100 bills. Keep your cash with your emergency supplies or in another safe place. It could be days or weeks before power is restored after a significant earthquake and you may need to replenish supplies.