1. IRA contribution limits $6k/&7k if over 55 – have until April
15, 2020 (no extension)
2. 401(k) limits $19k/$25k
3. HSA contribution limits $3,500 individual/$7k family – have
until April 15, 2020 (no extension)
4. SEP contribution – up to 25% of salary or $56,000, whichever is
less for employees. If self-employed business owner, up to 20%
or $56,000.
5. Medical expense deduction if you itemize increased to 10% of
AGI
6. Individual mandate penalty removed (some states still have
penalties – NJ, Massachusetts & DC)
7. Alimony deduction has been eliminated
8. Get with accountant/preparer to make estimated tax payments
9. Last year for 15% increase in basis for investment in qualified
opportunity zone property
10. Home office – simplified method or use an accountable plan
to be reimbursed if not a sole proprietor (single-member LLC).
It can allow for more business miles if you work from home.
11. Break apart travel meals, promotional meals, meals provided
on-premises for the convenience of the employer apart from
other meals to take advantage of 100% deduction vs. 50%
deduction
12. Hire children and pay up to $12,000 – must be providing a
legitimate service for the company
13. Accelerated/bonus depreciation. Company policy for
expensing smaller items such as computers (dollar threshold)
14. Fringe benefits such as phones, job-related education,
disability insurance, group term life, qualified dependent care.
15. Accountable reimbursement plan for reimbursement of
expenses paid out of pocket. Be aware of the timeline and
documentation rules. Can reimburse for mileage, home office,
travel, meals, etc.
