Thoughts On Lowering My Tax Bill
This blog is not intended to provide any TAX, LEGAL, or FINANCIAL ADVICE. It is a discussion forum I use to discuss issues I see in my daily practice. If you want tax advice consult your tax professional.
Are you expecting a hefty tax bill this year? You would think that making more money is a good thing but of course you have to make sure you pay the IRS their fair share. Here are some ideas to consider with your tax professional.
1) Pay deductible expenses due early next year before year’s end. For example, estimated state tax payments that are due usually by Jan 15 can be paid by Dec. 31 and claimed this year as a deduction.
2) Pay real estate taxes early – if i pay my real estate tax bill that is usually due in February by December 31 of this year, I can deduct this year.
3) Paying my January 1, 2006 mortgage payment by December 31 gives me the ability to deduct corresponding interest this year.
4) If you own your own business you could also think about acquiring an asset you’ve been thinking about getting before year’s end (new laptop, do you need to make any repairs, etc.).
Again, eveyrone’s situation is different so consult your tax professional so you can pick his/her brain on these subjects.