Exciting Year-End News and Reminders

Before the end of the year, we want give you some useful financial tips, and we also have some exciting news about our firm at the end of this newsletter. Happy Holidays to everyone!


Get Your RMDs Before It’s Too Late!

Have you taken the required minimum distribution (RMD) from your individual retirement account or workplace pension plan? That’s an important question, because failure to take your RMD on time could result in a stiff penalty of 50% of the amount you should have withdrawn (plus the income tax on the distribution).

In general, those who are over age 70½ must take at least a minimum payment from their retirement account each year by December 31. (A bonus for first-timers: You have until April 1 of the year following the one in which you turn 70½ to take the RMD.)  One exception to the rule is if you have a Roth IRA, which is not subject to an RMD during the account owner’s lifetime. Each taxpayer’s RMD is based on the amount in their retirement accounts and their life expectancy. You can always take more than your RMD, but your withdrawals are included in your taxable income.

Whether you’re planning for retirement or already enjoying it, we can help you determine or update what your RMD will be, decide how much income you will need each year and plan ways to minimize your tax bite. Please contact us with all your tax concerns.


Do you need to send out 1099-MISC forms?

The IRS requires that you file Form 1099MISC for each person in the course of your business to whom you have paid during the year at least $600 in rent or for services performed by someone who is not your employee, such as your attorney or computer consultant. If you have rental properties or a farm, these requirements also apply to you.

The IRS mandates that you send Form 1099-MISC to each person by January 31st. The agency will then also want a copy by February 28th. Although, this deadline is extended to March 31st if you use electronic filing.

And what if you miss any of these deadlines?  Well, there will be substantial penalties, which depend on how late you are with the filings. If you are unsure about your filing requirements, or would like for us to prepare these forms, just give us a call.


Change your commercial lease agreements

As mentioned in our previous newsletter, effective January 1, 2018, the Florida state sales tax rate on the total rent charged for renting, leasing, or granting a license to use commercial real property is decreased from 6% to 5.8%. The local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged, therefore, the total tax in Walton county will decrease from 7% to 6.8%. We advise you to change your commercial lease agreement to reflect this tax decrease.

Sales tax is due at the rate in effect during the time the tenant occupies, or is entitled to occupy, the real property regardless of when the rent is paid. Rental charges paid on or after January 1, 2018, for rental periods prior to January 1, 2018, are subject to 6% state sales tax, plus any applicable discretionary sales tax. Rental payments made prior to January 1, 2018, that entitle the tenant to occupy the real property on or after January 1, 2018, are subject to 5.8% state sales tax, plus any applicable discretionary sales tax.

For more information about the proper reporting of sales tax, in Florida visit the Florida Department of Revenue’s website, and in Alabama, visit the Alabama Department of Revenue’s website.

Get 24/7 online access to your financial information

Now it’s possible to do more and more anytime, anywhere, thanks to the Internet. And soon, you will be able to work with us online as well. You will be able to access a variety of services anytime, right from our website. It’s as easy and secure as online banking, and all it takes is a secure client portal.

You will be able to view and print tax documents and exchange files with us. We will be introducing the client portal this tax season. You will be receiving a registration email from us. Once you have registered, you will be able to log into the secure portal by clicking on the “Login” button on our website. You will have private, secure, and convenient access to the information you want, when you want it.


Warren, Sasser & Associates wins Thomson Reuters 2017 Customer Superstar Award

We are proud to announce that our firm won the Rookie of the Year Award for the most successful implementation of Thomson Reuters products.

Thomson Reuters Corp. provides integrated and intelligent information for businesses and professionals. It serves decision makers in the financial and risk, legal, tax and accounting, intellectual property, and science and media markets. The business has operated in more than 100 countries for more than 100 years.

Warren, Sasser & Associates depends on Thomson Reuters research and tax software.