February 2016

February 2016
THE VALLEY BUSINESS JOURNAL
www.TheValleyBusinessJournal.com
Extended Tax Provisions: Are You Affected?
MONEY
by
Esther Phahla,
CPA, CTC, MST
Towards the end of December 2015,
Congress renewed a number of “extender”
provisions that expired at the end of
2015. These provisions may affect some
individuals and businesses. Extended
individual provisions include:
• $250 educator expense deduction:
Made permanent, and adjusting for
inflation going forward, teachers
can claim this deduction for supplies
they’ve purchased for their
classrooms.
• Tuition and fees deduction: Reduce
the amount of your income subject
to tax by up to $4,000 of qualified
education expenses incurred. This
provision was extended through
December 31, 2016.
• Itemized deduction for state and
local general sales tax: Made permanent,
this option is valuable to
taxpayers who don’t pay state and
local income tax.
• Itemized deduction for mortgage
insurance premiums (PMI): A PMI
policy is coverage paid for by the
homebuyer, but it protects the lender
in case of default on the loan. This
provision was extended through
December 31, 2016.
• Qualified principal residence indebtedness
exclusion for debt discharge
income: Applies to most homeowners
who default on their loans, and
prevents the forgiveness of debt from
being included as income on the tax
return. This provision was extended
through December 31, 2016,
• Section 529 education plans: now
allow expenditures for computers,
peripheral equipment and software.
These tools must be used primarily
by the beneficiary during years of
academic study.
• The American Opportunity Credit.
Made permanent, this credit covers
up to $2,500 of education expenses
and was set to expire in 2018.
• Charitable distributions from IRAs:
are now permanently tax free. Taxpayers
age 701/2 (or older) can make
up to $100,000 of annual charitable
contributions from an IRA. These
contributions are not included as
income, nor are they deductible as
charitable contributions
Esther Phahla is a Certified Public
Accountant and Certified Tax Coach in
Temecula. She also holds a Master’s of
Science in Taxation. She is the Best Selling
Co-Author of a Tax Planning book
“Why Didn’t My CPA Tell Me That”. She
can be reached at (951) 514-2652 or visit
www.estherphahlacpa.com.
connect: www.estherphahlacpa.com
11
Refresh Your Message!
MARKETING
by Tracey Papke
The New Year is a time for fresh
beginnings and a great time to consider
revamping your marketing materials. It’s
time to refresh your marketing when you
determine it’s time to update your message,
take your business to the next level,
and remind your clients (both current and
potential) that you are available for them.
When refreshing your marketing
message, a pertinent question to ask is
“are we currently telling the wrong or an
outdated story?” If you need updating,
then focus on what message currently
reflects your business’ ideals. Get to the
point and keep it simple. When conveying
your message, it is very important that
it is done right. For printed materials,
design is everything, so seek the help
of a professional designer to maximize
your results.
Often, there comes a point when it is
time to think about taking your business
to the next level. Perhaps you are going
in a new direction or adding on a new
product. This is a great opportunity to
create new collateral materials that focus
on what is new and exciting about your
business. It can’t be said enough; seek
professional help when creating new
marketing materials. Graphic designers
and printers will become part of your
team to insure that the right message is
getting through.
Your new materials and marketing
campaign should remind your clients
why they do business with you. It should
also set you apart from your competition
by highlighting your attributes and distinguishing
you as an authority in your
field. Refreshing your message and implementing
a consistent marketing plan
will deepen your relationship with your
clients. They will benefit from a deeper
understanding of what your business
offers and will remember you when they
need you.
At the beginning of this fresh New
Year, take the time to update your marketing
materials. For the best results team
up with a graphic designer and local print
shop, then sit back and enjoy the benefits
of your efforts!
Tracey Papke is the owner of Potamus
Press, a commercial print shop that
specializes in offset and digital printing.
For more information please visit www.
potamuspress.com or call (951)693-2136