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Small Business Tax Q&A: June ’17

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in Small Business Tax,Small Business Tax Deduction Strategies

Make higher-education credit count

Q. My daughter is starting school part time this year. Can I skip the AOTC for 2017 and take it next year? J.C., Wellesley, Mass.

A. Yes. The American Opportunity Tax Credit (AOTC) is available for up to four years of study—not just one year—but you still want to claim it in the tax years in which you’ll get the most bang for your bucks. For this reason, parents of full-time students will often skip the first tax year in which their child enters college. Note that the maximum AOTC that can be claimed in any one year is $2,500 per student.

Tip: The AOTC is phased out for middle-to-upper income taxpayers.

Beware of the NII tax in ’17

Q. Can I sell stocks in 2017 without worrying about the NII tax? K.D.T, Atlanta

A. No. As of this writing, the 3.8% net investment income (NII) tax, enacted as part of the Affordable Care Act, is still the law of the land. The tax applies to the lesser of NII o...(register to read more)

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