The end of year is coming up fast. Along with it are many related deadlines for minimizing the amount you will be paying in taxes. Now is the time to take advantage of these tips to save as much as you can.
1. Appeal Your Property Taxes
Around half of all annual property tax bills sent out to Long Island property owners are wrong each year. In many cases they are grossly over-inflated by hundreds and thousands of dollars, and more.
Get in touch with Property Tax Adjusters Ltd., to find out how much less you should really be paying this year.
2. Tax Loss Harvesting
Many individuals are finding that their investments have headed downwards. Trying to cling on in the hope that stocks and real estate prices will go up again in the next seven years may be a very frustrating gamble.
However, you can sell them at a loss, and use that as a tax break. Then invest in something else which is more likely to grow or hold its value.
3. Cost Segregation
If you are still investing in real estate, then investing in infrastructure or building can provide additional tax breaks and deductions through cost segregation. While some type of property also benefit from accelerated depreciation.
4. Maximize Contributions To Tax Saving Accounts
IRAs, 401ks, ESAs, and HSAs can all offer deductions when you contribute to them. In turn you may also benefit from deferred taxes or tax free gains, depending on which type of account you have.
In many cases, each member of a household can have their own account, multiplying your tax savings.
5. Donate Your Property
With property values diving, and few buyers out there, more people are choosing to donate their property to charity for the tax deduction. Just as many have done with cars and other items in the past.
6. Gift Your Property
You may minimize your own tax liability, and taxes on estate transfers by beginning to gift real estate and cash to your heirs and other beneficiaries early. Check this year’s limits per recipient and make a plan for gradually transferring your estate a little each year.
7. Keep Better Financial Records
There are many other write offs, deductions, and tax breaks available. Though you will only be able to benefit from them if you have kept good financial records. Have a system for this. The more organized you are, the less your bookkeepers and accountants will charge you as well.
8. Get A Better Accountant
How much you can save often comes down to how great your tax preparer and accountants are. The fees you pay for this are generally tax deductible as well. So, hire the best possible help that you can.