Page 11 - Boca Club News - December '21

Boca Club News, Page 11
Memo from County Tax Collector Anne M. Gannon:

Property Tax Savings, Turtles and Charity!

By Anne M. Gannon, Constitutional As we round out 2021, I want to wish you a very happy account number,
Tax Collector serving Palm Beach and healthy holiday season and hope this year you are able so have those
County. You can reach her office to enjoy the season with family and friends. handy before
by Email: ClientAdvocate@ During the upcoming holiday season, we know that our you log on. If
taxcollectorpbc.com. Phone: (561) clients are busy. Special recipes to prepare and gifts to shop using a credit
355-4271. for, there’s so much to do before the end of the year. Clients or debit card,
It goes without saying that 2021 can still save time and money by paying their property taxes we accept Visa,
was another challenging year as we early. A 3% discount is available if you pay your property MasterCard,
continued to deal with the COVID-19 tax by December 31st. The discount offer decreases by American
pandemic. With the availability of vaccines and more and more 1% each month, before expiring February 28th, 2022. All Express and
people getting vaccinated, we are hopefully seeing the results property tax payments must be received by March 31st to Discover. A
as fewer cases, hospitalizations, and deaths are reported. I am avoid delinquency. 2.4% processing
hopeful that 2022 will continue this trend and COVID-19 will Pay online quickly and securely at pbctax.com by eCheck, fe e wi l l be
not be the driving force of how we live our lives. Through it credit or debit card. eCheck, or electronic check, is a free collected by the
all, my focus has been and will remain the health and safety service allowing you to pay directly from your bank account, card processing vendor, and not retained by our office. For
of my employees and our clients. using your bank’s routing number and your check or savings online payments, bank processing times average between
1-3 business days, depending on your financial institution.
For details about these payment methods, and other options,
such as wire transfers, visit pbctax.com/payment-options.
*Keep in mind that processing times noted in the chart are in
addition to mail handling or delivery times through the United
States Postal Service or your courier of choice. Payments
Appropriate Checklists for Raymond James Financial Services, Inc. are not accepted by phone.

See Palm Beach County this Holiday Season. With kids
Year-End Tax Planning Arthur Rottenstein out of school and family visiting, now is the perfect time to
get out enjoy the Florida “winter” and visit one of Palm Beach
Registered Securities Principal
What are appropriate checklists for year-end tax 561-241-6616 County’s many outdoor recreational spots.

Looking for the perfect beach? With 47 miles of coastline,
planning? ArthurRottenstein@ you’ll find the beach that is right for you! Did you know Palm
Tax planners often develop checklists to guide taxpayers toward year-end RaymondJames.com
strategies that might help reduce taxes. Typically, suggestions are grouped bocaratonfinancialplanner.com Beach County has the third-largest barrier reef system in the
into several different categories, such as "Filing Status" or "Employee world? Take a snorkeling or diving trip at Phil Foster Park,
Matters," for ease of reading. When year-end approaches, it might be wise
to review each suggestion under the categories that may apply to you. Peanut Island or Coral Cove Park and be on the lookout for
Filing status and dependents sea turtles and tropical fish!
• If you're married (or will be married by the end of the year), you should
compare the tax liability for yourself and your spouse based on all filing Joseph Carpenito How about
statuses that you might select. Compare the results when you file jointly animal encounters on
and when you file married separately. Determine which results in lower Financial Advisor
overall taxation. land? With visits to
• If you and several other people financially support someone but none of 561-241-6616 Loggerhead Marinelife
you individually qualifies to claim the individual as a dependent, you should
consider making an agreement with all of the other parties to ensure that Joseph.Carpenito@ Center in Juno Beach
at least one of you can claim the individual as a dependent. Certain tax raymondjames.com. and Gumbo Limbo in
benefits may be available if you can claim an individual as a dependent.
Family tax planning 301 Yamato Road, Suite 3160 Boca Raton you can
• Determine whether you can shift income to family members who are in Boca Raton, FL 33431 learn more about the
lower tax brackets in order to minimize overall taxes.
Tip: However, under the kiddie tax rules, the unearned income of a child sea life that calls Palm Beach County home. To see Florida’s
in excess of $2,200 (in 2020 and 2021) is taxed at the parents' tax rates. The kiddie tax rules apply to: (1) those under age 18, (2) those age 18 whose earned state marine mammal, take a trip to Manatee Lagoon in Rivera
income doesn't exceed one-half of their support, and (3) those age 19 to 23 who are full-time students and whose earned income doesn't exceed one-half of
their support. Beach, which features hands-on exhibits and an observation
• Consider making gifts of up to $15,000 (in 2020 and 2021) per person federal gift tax free under the annual gift tax exclusion. deck to spot manatees. Don’t want to get out of your car, then
Use assets that are likely to appreciate significantly for optimum income tax savings.
• Take advantage of tax credits for higher education costs if you're eligible to do so. These may include the American Opportunity (Hope) credit and the Loxahatchee’s Lion Country Safari, Florida’s only drive-
Lifetime Learning credit. Note that these credits are based on the tax year rather than the academic year. Therefore, you should try to bunch expenses to through safari park allows you to see lions, giraffes, rhinos
maximize the education credits.
Tip: If you have qualified student loans (and meet all necessary requirements), you may be entitled to take a deduction for the interest you paid during the and more without ever leaving your car.
year. The maximum amount you can deduct is $2,500. Our outdoor parks and recreation sites aren’t the only
Employee matters
• Self-employed individuals (who generally use the cash method of accounting) can defer income by delaying the billing of clients until next year. You may place you’ll find trees. Visit the only 35-foot-tall, 700-ton
also be able to defer a bonus until the following year. holiday sand tree, Sandi at the Waterfront in Downtown West
• Use installment sale agreements to spread out any potential capital gains among future taxable periods. However, the gain on the sale of publicly traded
stock or securities cannot be spead out. Palm Beach! Ever seen a 100- foot Christmas tree? Just take
Business income and expenses a trip to Delray Beach to see one of Palm Beach County’s
• Accelerate expenses (such as repair work and the purchase of supplies and equipment) in the current year to lower your tax bill.
• Increase your employer's withholding of state and federal taxes to help you avoid exposure to estimated tax underpayment penalties. largest holiday displays that has been illuminating downtown
• Pay last-quarter taxes before December 31 rather than waiting until January 15. for the past 27 years.
• In certain circumstances, it may be possible for the full cost of last-minute purchases of equipment to be deducted currently by taking advantage of
Section 179 deductions or additional first-year depeciation deductions. Our Charitable Giving. ‘Tis the season for giving and
• Generally, you are able to make a contribution to your employer retirement plan at any time up to the end of the year. helping others. Every two years our agency selects two local
Financial investments
• Pay attention to the capital gains tax rates for individuals and try to sell only assets held for more than 12 months. non-profit organizations to support through our Community
• Consider selling stock if you have capital losses this year that you want to offset with capital gain income. Involvement Partner program. This program is driven by
• If you plan to sell some of your investments this year, consider selling the investments that produce the smallest gain.
Personal residence and other real estate employees and all items donated and funds raised generously
• Make your early January mortgage payment (i.e., payment due no later than January 15 of next year) in December so that you can deduct the accrued come from them. Currently, we have partnered with Making
interest for the current year that is paid in the current year.
• If you want to sell your principal residence, make sure you qualify to exclude all or part of the capital gain from the sale from federal income tax. If you Every Day Count and Living Hungry.
meet the requirements, you can exclude up to $250,000 ($500,000 for married couples filing jointly). Generally, you can exclude the gain only if you used the Our dedication to serving others sometimes goes beyond
home as your principal residence for at least two out of the five years preceding the sale. In addition, you can generally use this exemption only once every
two years. However, even if you don't meet these tests, you may still be able to qualify for a reduced exclusion if you meet the relevant conditions. national borders. Back in early August, Haiti was struck by
• Consider structuring the sale of investment property as an installment sale in order to defer gains to later years. (However, the gain on the sale of publicly a 7.2 magnitude earthquake; days later it was battered by
traded stock or securities cannot be deferred.)
• Maximize the tax benefits you derive from your second home by modifying your personal use of the property in accordance with applicable tax guidelines. Tropical Storm Grace. After hearing the news our team was
Retirement contributions eager to help. We are proud that our team raised $1,685 to
• Make the maximum deductible contribution to your IRA. Try to avoid premature IRA payouts to avoid the 10 percent early withdrawal penalty (unless you
meet an exception). Contribute the full amount to a spousal IRA, if possible. If you meet all of the requirements, in 2020 and 2021 you may be able to deduct help those impacted by these events. This money was given to
annual contributions of $6,000 to your traditional IRA and $6,000 to your spouse's IRA. You may be able to contribute and deduct $1,000 more if you're at the nonprofit Hope for Haiti to aid in the relief and restoration
least age 50. Contributions to an IRA can generally be made at any time up to the due date (not including extensions) for filing a given year's tax return.
• You may also be able to make nondeductible contributions to a Roth IRA. The same dollar limit applies to all contributions to your traditional and Roth efforts for the people of Haiti.
IRAs combined. Qualified distributions from a Roth IRA can be received tax-free. Employees hold fundraising activities throughout the year,
• Set up a retirement plan for yourself, if you are a self-employed taxpayer.
• Set up an IRA for each of your children who have earned income. with the most recent being a Pumpkin Decorating Contest.
• Minimize the income tax on Social Security benefits by lowering your income below the applicable threshold. The proceeds of the contest went to our charitable partner,
Charitable donations
• Make a charitable donation (cash or even old clothes) before the end of the year. Remember to keep all of your receipts from the recipient charity. Making Every Day Count, who are committed to raising
• Use appreciated stock rather than cash when contributing to charities. This may help you avoid income tax on the built-in gain in the stock, while at the funds so Palm Beach County Family and Delinquency Drug
same time maximizing your charitable deduction.
• Use a credit card to make contributions in order to ensure that they can be deducted in the current year. Courts can give youth and families affected by addiction a
Adoption and medical expenses second chance.
• Take advantage of the adoption tax credit for any qualified adoption expenses you paid. In 2021, you may be able to claim up to $14,440 (up from $14,300
in 2020) per eligible child (including children with special needs) as a tax credit. The credit begins to phase out once your modified AGI exceeds $216,660 (up Stay tuned: In the coming weeks employees will be
from $214,520 in 2020), and it's completely eliminated when your modified AGI reaches $256,660 (up from $254,520 in 2020). participating in a sock drive to donate to our community
• Maximize the use of itemized medical expenses by bunching such expenses in the same year, to the extent possible, in order to meet the 7.5% threshold
percentage of your AGI. partner, Living Hungry, to ensure that homeless children have
access to clean socks. Living Hungry works to eliminate food
This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial
Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available insecurity experienced by local homeless school children.
data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport Important Dates and Deadlines:
to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or
an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past December 24 & 27 Winter Holiday – Offices Closed
performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These December 31* Deadline for Property Tax 3%
matters should be discussed with the appropriate professional. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an
independent broker/dealer, and are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, Discount
are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Investment Advisory services offered through December 31* Deadline to make IPP Installment
Raymond James Financial Services Advisors, Inc. The information contained within this commercial email has been obtained from sources considered reliable,
but we do not guarantee the foregoing material is accurate or complete. Payment #3
December 31 New Year’s Eve – Offices Closed