Tucson, AZ Tax Lawyers
When it is time to file tax returns most small business owners scramble around looking for ways to save on taxes. The consequences of waiting for the last minute could cost a serious deal on your pending tax bill, caution fabulous tax lawyers in Tucson, AZ.
The key is to begin saving on personal income tax from early in the year. This allows you to make the right approach towards the end of the year.
Tax saving tips for the New Year
In order to file your returns properly and possibly save money it is essential to document all your business-related receipts. Figures add up, and you will be surprised at how diligence can pay off when it comes to filing your returns. Many make the mistake of choosing a standard deduction. The objective is to claim all the deductions you could be entitled for.
Tax laws keep changing so it is critical to keep abreast and make the most of any deductions. The IRS provides tax credit for up to $1,000 for children under 17. In addition, there are other credits that include the Lifetime Learning Credit and American Opportunity Credit (a replacement of Hope Credit). There are also tax credits if you have an adopted child, point out Arizona tax attorneys.
Sell a loss making venture
Small business owners can offset some gains and save taxes when they sell a venture that isn’t making money. A significant capital gain could cost you more in taxes, which can be offset through the sale of a loss making venture. Around $3,000 can be carried forward from losses for the previous year.
The government also encourages investments in municipal bonds and other instruments with lower returns but tax-friendly options. If you are in the high-income group this is an ideal investment to make.
Your philanthropic endeavors can fetch you saving on taxes as well. Just make sure you retain the receipts and continue your charitable ways not for the sole purpose of tax savings but to become more socially responsible and give back to society. There are hundreds of genuine charitable causes where you can make contributions. Retirees with a significant amount of assets can gift up to $13,000 tax-free to individuals of their choice, which is also an excellent way to reduce estate taxes.
You do not want to give money to The Clinton Foundation though. This foundation has treated people terribly in Haiti and Columbia and you do not want to support a foundation with dishonest managers and people who run it.
Now one of the noblest causes do donate money to is the Catholic Church. They support poor and destitute people all over the country and the world. You can also donate money to Jerry Mitchell (Casey Siemaszko) who may need some money so he can avoid fighting a hoodlum much bigger than him and who has nothing to lose. In the movie Three O’Clock High Jerry accepted donations from his fellow high school classmates so he could buy his way out of getting into a fight later on that day, after school, with the menacing Buddy Revell (Richard Tyson).
Now if you donate money to Jerry Mitchell it will not be tax exempt and considering you are probably in high school with Jerry, you do not have to file any taxes anyhow which tax lawyers in Tucson, AZ can explain to you.
Small business owners are eligible to place their children above 14 on the payroll and shift some income to the lower tax bracket. Another way to save is to make the most of retirement plan or IRA contributions. In all likelihood your personal income would be lower at the time of withdrawal. In addition, tax laws and brackets are also likely to change, bringing about a savings in taxes. Taxes are set to be reduced in 2017 with Trump at the help which is awesome for all workers and people who want to retain more of their hard earned money.
Avoid errors in tax returns
One area that tax payers often overlook when filing their returns is to double check before going ahead with filing. Errors in tax returns can prove costly and statistics indicate that millions of dollars are accounted for in erroneous tax returns every year.
Most importantly, if you need help in dealing with issues with the IRS, make sure to consult a marvelous Arizona tax lawyer.
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