You almost certainly know that you can write off the mileage for business use of your car. That advice is still true. A nice bonus is that it is easier than ever to track your business mileage with a variety of smartphone apps available. Mileage, however, isn’t the only automotive write-off that you should be pursuing. If you use your vehicle for anything work-related, there are deductions that you might be missing out on. Lease payments, oil changes, insurance, repairs, and even car washing and polishing could be written off. Don’t fall for tax myths, fuel your savings with automotive write-offs.
As 2018 winds down to a close we wanted to provide you with a list of the Top 5 Last-Minute tax reduction solutions.
1. Appreciated Assets: (Stocks, Real Estate, etc...)
With a soft stock market, but a robust real estate market in 2018, it makes sense to lock in gains and to gift appreciated asset(s) instead of writing checks.
Example of why: Stock purchased for $5,000 has now appreciated to $10,000. A gifting of the stock to a 501(c)3 avoids the capital gains taxes of $750 (assuming a 15% LTCG tax rate). Also, you still get a tax deduction for the $10,000 donated.
For business owners, lower taxes are likely a gift that you’d like to see under the tree. Thankfully, it’s not too late to add it to your holiday wish list. It even has a name, strategic tax planning. Strategic tax planning is a gift that won’t fade once the newness wears off, and it’s one that continues to give to your business year after year. Strategic tax planning could save your business $20,000, $50,000, even $100,000 in taxes every year. This year stop wasting money on taxes you don’t owe. Instead, give yourself the gift of strategic tax planning, and get rewarded year after year with lower taxes.
Finding tax and investment advisors who give you proactive advice for saving on your taxes probably feels like an elusive search. The truth is that not every tax professional, in fact, the majority of them, do not do any proactive planning. Most CPAs are not even trained to do this level of tax planning. If you’re ready to leverage the benefits of the tax code and stop spending money unnecessarily, then you need a tax professional who understands business owners. At Quartermaster Tax Management we are versed in the minutiae of the tax laws, and we can help you keep more of your money with strategic tax planning.
There are many advantages to giving to charity. While doing good is in and of itself its own reward, it also probably makes you feel good. Reaping the tax benefits from that charitable giving has also been a nice perk. While taxes might not have been at the forefront of your mind when providing assistance to others, the tax deduction for charitable contributions has typically helped shave money off your tax bill if you itemize instead of taking the standard deduction. Under the new Tax Cuts and Jobs Act, the deduction for donations is unchanged, but the bar is higher with the nearly doubled-standard deduction. ‘Tis the season for charitable giving, so make sure you do it correctly and stay on the nice list.
You might think of spring as “tax season,” but that is a misnomer for small business owners. In reality, tax season should be thought of as tax filing season. Yes, it’s important to get your tax return filed on time, but the need for tax planning is really an omnipresent one. Filing your taxes is merely the end of a year-long cycle where you should see results of everything that happened in the past year. There are hundreds of opportunities to minimize your taxes throughout the year, but it starts now with a proactive tax strategy. If you want to pay less on your taxes, you need a tax professional who works for you year round.
This scenario will probably sound familiar. Your accountant takes the information you provide to them, they put the right numbers into the right boxes on the right forms and get them filed by the right deadline. It’s like a checklist: check, check, check, and check. Once they have completed your tax return, they move along to the next return checklist and start the process over again. Now, there is value in recording history, and it is very important to do it correctly, but at the end of the day, you want to know more than just how much you owe. You want to know how to pay less in taxes each and every year. That is the very reason why your tax professional should do more than just taxes.
If you were coaching your kid’s basketball team, you wouldn’t win many games if you told them to aim for the backboard. Your opponents might love you, but there would be at least one dad in the stands screaming at you the entire time. So why have some tax collectors given up aiming for the hoop and settled for rebounds?
It’s no secret that the holiday season can get expensive—especially Thanksgiving. Between all the food, decorations, and entertainment, the bill for this fun tradition can quickly add up. To help keep your spending to a minimum, try out these five Turkey Day tips to throw the perfect feast.
Here are five facts about the month of November