Accelerating Income into 2016

accelerating-incomeDepending on your projected income for 2017, it may make sense to accelerate income into 2016 if you expect 2017 income to be significantly higher. Options for accelerating income include:

1) Harvesting gains from your investment portfolio, keeping in mind the 3.8 percent NIIT.

2) Converting a retirement account into a Roth IRA and recognizing the conversion income this year.

3) Taking IRA distributions this year rather than next year.

4) If you are self-employed and have clients with receivables on hand, try to get them to pay before year end.

5) Settle any outstanding lawsuits or insurance claims that will generate income this year.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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