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Tax Tips

Tax law can be complex. There's much to know to be sure you're doing all you can to get what you deserve. Here are some personal and business tax tips to get you started. We update this information regularly, so check back soon for new tips. 


 

Personal Tax Tips

  • Charitable Donations As a donor, you may not deduct labor or time, but you may deduct expenses such as mileage, uniforms, and even the cost     of taking underprivileged youth to sports events or movies.
     
  • Medical Expenses It's difficult to reach the percentage of adjusted gross income  you need to spend on medical expenses to be eligible. But     if you qualify, you shouldn't overlook all possible expenses.  Sometimes, it's even best for married couples to consider filing  separately     if one partner has high medical bills.
     
  • Mortgage Interest Points
  • Points paid on a home mortgage are usually deductible as  interest. If the mortgage is for the purchase or improvement of your  principal     residence, you can either deduct the full amount of the points in  the year of payment or, if you're not itemizing your deductions that  year,     pay back the points over the loan term.
     
  • Retirement Plan One of the most powerful tax shelters available is a qualified  retirement plan. Within certain limits, contributions to fund the plan  are     immediately tax deductible, plan investment earnings are tax  deferred, and plan participants do not have to pay income taxes on  benefits until     they receive their distributions.
     


 

Business Tax Tips

  • Business Automobiles You can claim deductions for the business-related use of an auto  using either the standard mileage rate method or the actual expense  method.     You should use the method that will yield the largest deduction.
     
  • Hiring Your Children If you have your own business, consider hiring your child to work  after school or on vacations. The wages you pay your child for bona  fide work     are tax deductible.
     
  • Home office expenses To qualify for a deduction related to an office in the home, you  must have an area of your home used exclusively as your principal place  of business.     This includes a place of business where you meet or deal with  patients, clients, or customers.
     
  • Profit-sharing plans Unlike other plans, a profit-sharing plan is flexible. It can be  designed so that the employer is not required to make an annual  contribution.
     


 

This list is far from exhaustive. Call us today to set up a time to discuss your specific situation and needs.

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