18 Ways to cut your taxes

  • Take advantage of the tax break for contributing to a tax-deductible retirement plan
  • Be sure enough taxes are being withheld from your paycheck each month
  • Be aware of the standard deduction and plan accordingly
  • Plan your itemized deductions according to year and income
  • Be aware of the child care credit
  • If you provide over half the support for your parent you may be eligible to claim a dependency exemption
  • Hire your child to work for your business
  • Invest to take advantage of lower long term capital gain rates
  • Plan your capital gain transactions
  • Consider tax-exempt investments as a means of cutting your income tax
  • Maximize retirement plan contributions
  • If you borrow money try to structure the loan so that the interest will be deductible
  • Postpone taxes by swapping investment or business property instead of selling it
  • When you retire plan your payout accordingly and seek financial guidance
  • Consider downsizing to free up equity
  • If your accounts provide enough to support your retirement lifestyle, consider delaying withdrawals from your tax-deferred retirement accounts
  • No matter how much Congress changes the estate tax rules, it’s important to have an estate plan in place

Please feel free to call our office with any questions you may have with the above information.