Q: I have yet to contribute to my IRA. When is the last day I can contribute funds to my IRA for the 2013 year?
A: Generally, funds contributed to an IRA must be contributed before the individual tax filing date for that particular year. For the 2013 tax year, April 15, 2014 is the deadline to file and make IRA contributions for 2013.
Q: I will end up owing taxes for the 2012 tax year. What can I do in order to reconcile the situation with the IRS?
A: There are a few avenues that can be taken. First, you can pay the bill in full. If the liability is too large you may file an installment agreement with the IRS to pay the debt over time. You can also apply your 2013 refund to the 2012 liability.
Q: What will the estate exemption be for 2014?
A: It is indexed for inflation is $5,340,000 for 2014. The annual gift tax exemption remains at $14,000.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors