What can you do this month to lower your 2016 income taxes? Time is running out but you can still take the following actions:
1. Make donations of clothing and household items to Goodwill. Keep the receipt and a record of items donated and use the valuation guide at salvationarmyusa.org to value the donation.
2. Organize your tax documents and deductions in one file folder for the year.
3. If you have a business on the cash basis, delay mailing bills until late December so that the payments won't be received until 2017. Pay your January business rent in December and buy office supplies. Buy and place into service office equipment.
4. Sell investments with losses so that you can offset any capital gains plus $3,000.
5. Now is the time to write a check to your favorite charity.
6. Pay your fourth quarter estimated state taxes by 12/31/16.
7. Increase your 401(k) contributions. This year workers can contribute up to $18,000 and $24,000 if you are at least 50.
8. Consider taking cash from your Roth if you need funds instead of from your pretax retirement account.
9. Invest in a conservation easement. It may be possible to get up to a 4 to 1 charitable contribution write off of the amount invested.
10. Donate appreciated stock to charity.
11. Do a qualified direct contribution of your required minimum distribution from your retirement account to charity.
12. If you are 62, house rich, and cash poor, consider a reverse mortgage to provide a source of tax free funds.
thanks for the tips and information..i really appreciate it.. stevenyson
ReplyDeleteYou know your projects stand out of the herd. There is something special about them. It seems to me all of them are really brilliant! bookkeeping Ottawa
ReplyDelete