Category: News

2017 KMA Year End Tax Planning with Special Report on Tax Reform

Click HERE to view 2017 Year End Tax Planning

Year-end 2017 presents a unique set of challenges for taxpayers. At the top of the list are the uncertainties created by the possibilities within proposed tax reform legislation – what changes might be made, and whether those changes would be retroactive for 2017.

Highlights of the 2017 Year End Tax Planning include:

  • Tax Reform – Different Paths
  • Rate Cuts – 2017 or 2018?
  • Standard v. Itemized Deductions
  • Depreciation Strategies
  • Life-Cycle Considerations
  • Timing Strategies


The IRS Issued An Urgent Warning Against An IRS / FBI-Themed Ransomware Phishing Attack

The Internal Revenue Service warned people to avoid a new phishing scheme that impersonates the IRS and the FBI as part of a ransomware scam to take computer data hostage.

The IRS said: “The scam email uses the emblems of both the IRS and the Federal Bureau of Investigation. It tries to entice users to select a “here” link to download a fake FBI questionnaire. Instead, the link downloads a certain type of malware called ransomware that prevents users from accessing data stored on their device unless they pay money to the scammers.”

“This is a new twist on an old scheme,” said IRS Commissioner John Koskinen. “People should stay vigilant against email scams that try to impersonate the IRS and other agencies that try to lure you into clicking a link or opening an attachment. People with a tax issue won’t get their first contact from the IRS with a threatening email or phone call.”

I suggest you send employees, friends and family an email about this ransomware attack, you’re welcome to copy/paste/edit:
“Heads-up! The IRS is warning against a new phishing scam that tries to make you download an FBI questionnaire. But if you click the link, your computer will be infected with ransomware instead. The scam email uses the emblems of both the IRS and the Federal Bureau of Investigation.


KMA Cares 1st Annual Golf Outing was a success.

More than 100 golfers hit the links at Bishops Bay County Club on Monday, Aug. 14 to support Habitat for Humanity of Dane County as part of the First Annual KMA Cares Golf Outing. Hosted by KMA Advisors and Accountants and attended by former UW men’s basketball coach Bo Ryan along with area business leaders, the event raised more than $25,000 toward affordable housing in Dane County.

For additional pictures click HERE


May 15, 2017


Madison, WI May 15, 2017– Wisconsin School of Business awarded KMA a Dane County Small Business Award. These prestigious awards recognize successful small Dane County businesses that have rewarding workplace environments and contribute to the community.

“KMA truly cares about giving back to the community and creating a positive environment for staff to actively participate with local charities,” exclaimed Jason Kadow, Managing Partner who currently serves as the chair of the board for Habitat for Humanity of Dane County.

KMA was started in 2011 by three CPAs who decided to focus on work place culture to create a high quality professional service team. KMA cares about its staff and takes pride in the firm culture. KMA staff enjoy helping clients and the community within Dane County. KMA’s headquarters are located at 1200 John Q. Hammons Drive, Suite 500, Madison, WI 53717. KMA has additional offices in Verona, Waunakee, Lodi and Monona.

If you would like more information about this topic, please contact Alex P. Gibson at 608 664 1040 or email at

This Dividend Strategy May Save You On Next Year’s Taxes

Article by Eric Ervin

The month of April marks the U.S. tax filing deadline for individuals. For most, this can be confusing – if not dreadful – as taxpayers attempt to make sense of all the moving pieces in their financial lives, especially investments.

To add to the complexity, each security in a portfolio likely gets taxed differently, forcing a careful review of the year’s tax documents with a tax advisor. It is also increasingly important for investors to become familiar with tax terms like cost basis, ordinary income, and Schedule B.

In light of the intricacy of filing taxes, here are a few important takeaways investors should know going forward, especially when creating ETF and mutual fund portfolios.

The Difference Between ETFs And Mutual Funds: Capital Gains

Conventional wisdom says ETFs are more tax efficient than mutual funds, but what does that mean exactly? Both mutual funds and ETFs are baskets of different investments, which may change based on market conditions. But, mutual fund managers often buy or sell securities in an effort to outperform the market. If a mutual fund sells an underlying investment that has increased in value, it can result in a capital gain – a taxable event. Mutual funds are legally required to make these profitable distributions to investors, passing taxable capital gain payouts to investors, creating a tax liability for the mutual fund investor.

ETFs, on the other hand, are generally intended to track an underlying index/benchmark. To this end, ETF managers rarely buy and sell investments in their baskets. Therefore, ETF distributions are usually dividends from underlying investments, as opposed to a combination of both dividends and capital gain distributions. In recent years, the average capital gains distribution for small, large, and mid-cap funds surpassed 5% of a mutual funds’ net asset value, while ETFs are usually less than 1% on capital gain distributions.

Why is this important? Quite simply, taxes on dividends can be lower than taxes from capital gains payouts. If a mutual fund sells a profitable underlying investment that was held for less than one year, the capital gain payout is considered short-term, and taxed at ordinary income rates, which can be up to 39.6%.

Long-term capital gain rates may be less painful than short-term capital gains, but this rate is not guaranteed with holding mutual funds. If a mutual fund is held in a non-retirement account, one could potentially face an unanticipated tax expense, stemming from the fund’s capital gain payout.

Dividends, on the other hand, can be considered “qualified” if the U.S. stock or ETF was held for at least 60 days during the 121-day period surrounding the ex-date. Qualified dividends are taxed at a rate from 0% to 20% max, depending on one’s income bracket for that tax year. Comparatively, dividends can potentially allow investors to keep more of a portfolio’s generated income than other income-producing investments.

What About My Bond Interest?

Read More


Filing for an extension on your taxes doesn’t necessarily mean an audit. Here’s why

Article by Gail MarkJarvis Chicago Tribune.

Taxes are due April 18.

What should you do if you can’t finish your tax return on time or if you don’t have the money to pay your taxes now?

There is a common belief that you should be among the masses filing by the April deadline so you don’t draw attention to yourself from the IRS and bring on an audit. (This year’s federal tax deadline, by the way, falls three days later than usual because of Easter Sunday and Emancipation Day, a legal holiday that will be observed in the District of Columbia on April 17.)

But there’s a difference of opinion among tax professionals about whether the belief about audits is valid. Taxpayers who can’t meet the deadline can file for an extension that will let them submit their tax return later. And they should file for an extension if they can’t get their tax return done right in time for the April filing date, said San Francisco tax attorney Robert Wood.

New Tax Laws That Impact Small Business Owners in 2017.

Article by John Rampton from DUE

Whether you’re ready or not, we’re quickly approaching 2017. This means in just a few weeks, we’ll not only have a new president, but also a new set of tax laws and codes that will influence how we conduct business.

Since it’s always best to be well-prepared when it comes to taxes, here are some of the new changes that you should be aware-of. As with anything to do with the government or taxes — if you really want to stay-top of this information, meet with your tax advisor and frequently check for updates on

Keep in mind, this isn’t legal advice as I’m not in that space… but more a few new tax laws for 2017 that I’ve noticed that business owners should pay attention too. (Read More)

Great article on Small Business and Individual Tax Deductions

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_text]10 Can’t Miss Tax Deductions For Small Businesses & Self-Employed Persons Kelly Phillips Erb, Forbes Staff

“American business is overwhelmingly small business.” That’s the word from the Small Business & Entrepreneurial Council which cfigured that the number of small businesses with fewer than 20 workers together with the number of nonemployer businesses makes up 97.9% of the businesses in America (remember those are numbers of businesses and not numbers of employees).

Data from the Internal Revenue Service (IRS) supports the notion that small businesses are making a significant economic impact. Of the nearly 148 individual income tax returns filed in 2014 (the last year for which complete data is available, downloads as a pdf), 46 million – or 1/3 – of tax returns reported income from a sole proprietorship, pass-through business entity (like an s corporation, partnership or LLC), rents/royalties, or farms. That’s 1 in 3 individual taxpayers who filed an individual tax return reporting business-related income. It’s no wonder that a number of the questions in our last #AskForbes Twitter chat focused on deductions for small business. To help you out, here are 10 can’t miss tax breaks for small businesses and self-employed persons:

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