Here is an idea for an item of value or a pop-by with tax time approaching...or maybe even help for the real estate professional.
Every year people pay too much in taxes because they didn't think of donations or even medical expenses that can be deducted. Read this before you file.
1. Pay off debt with a home equity loan rather than credit cards.- Personal interest is not deductible. The interest on that loan is deductible and you will likely pay a lower rate than that of your credit card.
2. Contribute old clothes, furniture and other items to charity. - Most people know you get a deduction when you contribute cash to a charity, but did you know that you can deduct the wholesale fair market value of non-cash contributions to qualified charitable organizations. Just be sure to get a receipt. You can also deduct your mileage if you use your car for charitable purposes.
3. Bunch your deductions. - Many deductions require you to overcome a "floor" or minimum. When you are bunching medical bills for example, look to see if there are others you can take now rather than waiting until next year.
4. Don't forget about those investments. - Investment expenses are also allowed as miscellaneous deductions. Consider these expenses: investment publications (buy a subscription rather than buying at the newsstand), payment for investment advice, calls to your broker, and possibly even your computer.
5. Business supplies or business-related gifts - Pens, paper, calculator, computer, and maybe even a briefcase can be deductible. In order to use business supplies as deductions, you need to relate the item to your business.
6. Tax planning advice is deductible - Tax preparation fees can be deducted as business expenses.
7. Self-employed owner can deduct the costs of hiring their children - Hire your children. Make them earn their allowance with your business.
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