Michael Gray, CPA's Tax and Business Insight

April 5, 2016

© 2016 by Michael C. Gray

ISSN 1539-395X

A monthly report to help you prepare for your financial future, keep more of what you earn by minimizing your taxes, and build an extraordinary business!

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(If you find this information valuable, please pass it on to a friend!)

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Minnie Siemer with her daddy near Natural Bridges.
My granddaughter, Minnie Siemer with Daddy John Siemer near Natural Bridges Beach.

Remember Babe Ruth?

Babe Ruth was one of the greatest baseball players of all time. April 27, 1947 was declared Babe Ruth day and celebrated at every ballpark in the United States and Japan. Babe's record for the most home runs in a season stood for many years, but was eclipsed, partially because baseball season is now longer. Babe's other record, not so well known, is for the most strikeouts. There is an important lesson in the combination. We remember you, Babe!

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It's extension time.

If you want us to prepare your 2015 income tax returns and we haven't already received the information to do so, we will probably have to prepare extensions. Please call Dawn Siemer immediately on Mondays, Tuesdays or Thursdays at 408-918-3162 to make an appointment if a meeting is essential.

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April 18 is coming!

April 18, 2016 is the due date for 2015 calendar year individual income tax returns, fiduciary income tax returns and partnership income tax returns. You can usually apply for extensions of time to file the tax returns and there can be advantages for doing it, such as extending the time for making a contribution to a qualified retirement plan. Remember, the time is not extended for paying the income tax. Even if you are applying for an extension, you still need to make a good estimate of the tax.

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What if you don't have the money to pay the tax?

If you don't pay at least 90% of the tax by April 18, there is a potential penalty for filing the tax return late. That's 5% per month to a maximum of 25%. There are even more serious penalties that can sometimes apply.

If you don't have the money to pay the taxes, I recommend that you file as good of a tax return as you can by April 18 and "fine tune" it with an amended tax return later. This should help you avoid the penalty for filing a late income tax return.

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Remember that an estimated tax payment is also due.

The first 2016 estimated tax payment for individuals and most other calendar year entities is also due on April 18, 2016. The penalties for late payment of estimated taxes are computed as simple interest, currently at low interest rates.

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Remember the second California real estate tax payment is due April 11.

There is a nasty penalty for paying real estate taxes late, and the date slips past us because we're thinking about April 15. Why not make this payment now, so you don't forget it?

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Does your group need a speaker?

We are seeking opportunities to speak before groups. Topics include recent tax developments, tax issues relating to real estate, how estate planning has changed recently, tax issues relating to alternative investments using retirement accounts, and marketing topics such as "How I created a public access television show broadcast on eleven Bay Area stations." To make arrangements, call Michael Gray at 408-918-3161.

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Please share your good experiences with Michael Gray, CPA.

As you know, more and more people are going to the internet to find information about service providers. We hope you will share some good words about experiences that you have had with our firm. Some of the sites where you can share your experiences include yelp.com, siliconvalley.citysearch.com, and Google+.

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Financial Insider Weekly broadcast schedule for April and May.

Financial Insider Weekly is broadcast in San Jose and Campbell on Fridays at 9:30 p.m., Pacific Time. You can watch it on Comcast channel 15 for San Jose and Campbell. The show is broadcast as streaming video at the same time at www.creatvsj.org.

Here are the scheduled interviews for April and May:

April 1 and 8, William J. Mitchell, CPA, "I'm being audited by the IRS! Now what?"
April 15, William J. Mitchell, CPA, "Appealing your tax audit"
April 22 and 29, William J. Mitchell, "I owe the IRS! Now what?"
May 6, Greg Carpenter, business broker, "Buying a business"
May 13, Greg Carpenter, business broker, "Selling a business"
May 20 and 27, Bettie Baker Marshall, Attorney at Law, "Legal concerns when caring for an incapacitated friend or relative"

Financial Insider Weekly is also broadcast as follows:

Past episodes are available at https://www.youtube.com/user/financialinsiderweek.

Let me know any ideas that you have for topics or guests. Guests will usually have to be located in or near the Silicon Valley in California.

Hope you can watch or record the show. Please tell your friends about it!

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Michael Gray regrets he can no longer personally answer email questions. He will answer selected questions in this newsletter.

For your questions about dependent exemptions, see IRS Publication 501 at www.irs.gov.

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Visit our new article!

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Follow me on Social Media!

Want to see new episodes of Financial Insider Weekly as soon as they're posted on Youtube? Want to see Michael Gray's blog posts as soon as they're live? We post them (and more) on social media!

If you enjoy Twitter, please follow me at www.twitter.com/michaelgraycpa. I would especially appreciate retweets of our messages announcing episodes of Financial Insider Weekly.

I'm also on Facebook, LinkedIn, and Google+.

you can also follow me on other social media sites, Facebook, LinkedIn, and Google+.

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If you have employee stock options, have you subscribed to Michael Gray, CPA's Option Alert at no charge or obligation?

To learn more, visit stockoptionadvisors.com/subscribe.shtml

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Real estate investors, have you subscribed to Michael Gray, CPA’s Real Estate Tax Letter at no charge or obligation?

For details, visit www.realestatetaxletter.com

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Check out my blog.

I have also started a blog at www.michaelgraycpa.com. Check it out!

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My daughter and her husband, Holly and Dan Baker, have a Southern French Restaurant at 23 Ross Common, Ross, California, about 15 minutes north of the Golden Gate Bridge. The name of the restaurant is Marché Aux Fleurs and their website address is marcheauxfleursrestaurant.com. For the best meal of your life, call 415-925-9200 for a reservation and give them a try! For directions, visit our website at www.taxtrimmers.com/directions.shtml.

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Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

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