If you are like a lot of people, you try to think about your personal or business taxes as little as possible. The problem is that taxes are retroactive on revenue or decisions you’ve already made. Strategies to save money on taxes take time to implement and it is a good idea to plan ahead to get maximum advantage. The accountants at CustomOne CFO & Controllers would like to share a few strategies that may yield some benefits before the end of the calendar year rolls around.
What is Your Bracket?
Right now the top bracket for individual taxpayers is 39.6% for single taxpayers with income over $418,000 per year, $444,550 if you file as head of household, or $470,700 for people filing jointly as married (or half that if married filing a single taxpayer). As we approach the end of the year, it is a good idea to see if there are some ways you may be able to stay out of this top bracket. If you are at or near the bracket, you might defer income until next year. You could also increase your deductible expenses by buying things you intend to buy anyway prior to December 31. Of course, these are still a good idea if you can’t avoid the bracket but are looking to lower your taxes.
Review Your Income
Other strategies involve shifting income-producing assets to members of your family in lower tax brackets. Just make sure that if the family member receiving unearned income is a dependent child under the age of 19 that you limit the shifted asset to a value less than $2,100 for 2017. You can make this transfer to a child up to 24 if they are a full-time student. Contacting a CPA or Accountants at CustomOne CFO & Controllers is the best way to ensure you get the expert advice you need according to your business situation. They will be happy to review your tax situation and make sure you file your returns appropriately while maximizing your tax savings.
If you have questions about your taxes, the end of the year is approaching and taking action on December 31st instead of January 1, 2018 can make a huge difference. If you have questions, you should contact a CustomOne CFO & Controller today to help determine your needs. Choosing the right firm to help with your taxes is integral to not only minimizing your tax liability, but doing so safely. If you are filing for your business, it is also a good idea that the CPA or accountant be somewhat familiar with your particular type of business to recognize nuances that others might miss. Firms like CustomOne CFO & Controllers, with multiple CPAs with a variety of experience, will help you find the right tax professional for your needs.