October is a great month; the colors are beautiful, and cool air surrounding us reminds us that another summer is closing. The earth is ready to rest from its toil from another growing season, but we are just getting started for another tax season!
October is a great time to make sure your profit and loss is updated, and your records are reconciled with bank and loan statements so you can start to plan your yearend tax strategy.
Start by reviewing the 2-year comparison profit and loss statement. By anticipating the income for the last two months based on actual numbers from last year helps one project what they might expect for a net income for the year.
Look at the ideas to consider for yearend strategies that one can put in place.
What character of income do you have and how can you use the tax brackets to your advantage?
Postponing income and accelerating deductions OR the reverse is possible too.
Talking with your financial advisor to see if any capital losses or gains should be harvested to use the tax brackets to their fullest potential.
Standard deduction is $29,200 MFJ ($14,600 S or MFS and $21,900 HOH and each are increased for over 65. Please note: Tax law will be sunsetting in 2025 and if not extended, will bring back the smaller amount for standard deduction and exemptions will be allowed again for Federal purposes.
Bonus Depreciation is set at 60% accelerated First Year which is an important factor for rental properties.
Starting early and developing a tax plan off solid numbers is crucial to your tax management success.
Call today to see how we can help you plan wisely.
Comentários