You have less than a month to take action. What should you do? See below for some ideas:
1. Clean out your garage and your closets. Make donations of clothing and household goods 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 in one file folder for 2018.
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 2019.
4. Buy office supplies, stamps, and equipment for your business.
5. Increase your 401k contribution to the maximum. The employee deferral is $18,500 ($19,000 for 2019) for 2018 plus $6,000 more if you are at least age 50 by year end.
6. Donate appreciated stock to a charity.
7. Do a qualified direct contribution of your required minimum distribution from your retirement account to a charity.
8. Sell securities with losses to offset your capital gains.
9. Consider setting up a donor advised fund to concentrate your charitable contributions in one year.
10. Check to make sure all of your estimated tax payments for 2018 have been made. The final one is due January 15, 2019.
11. Consider an opportunity zone investment to defer the tax on capital gains for 7 years. You have 6 months after the transaction to invest the capital gains so this is a step you could do in 2019 to reduce 2018 taxes.
12. If you have a specified service trade or business and your individual taxable income exceeds $315,000 joint or $157,500 single, then it would be advantageous for you to take steps to reduce your income below those thresholds so you could benefit from the new 20% qualified business income deduction. Steps to take include conservation easements, oil and gas investments, retirement plan contributions, large charitable donations, and business equipment purchases.
I have also cash basis business and have to paid tax every year. I wanted to reduce my taxes because of some financial issues. But after reading your blog I got tax reduce ideas. Besides of it, I also got CPA services for my small business from stuartrubincpa.
ReplyDeleteWow, excellent post. I'd like to draft like this too - taking time and extremely hard work to make a great article. Visit personal loan company near me. This post has inspired me to write some posts that I am going to write soon.
ReplyDeleteI agree with a lot of the points you made in this article. If you are looking for the Sales Funnel For Consultants, then visit Wesvault Pte Ltd. I love your content, they are very nice and very useful to us and this text is worth everyone’s attention.
ReplyDeleteI am truly pleased to read this information which carries lots of helpful data. It is advisable that you buy a wide range of Microsoft products. You can avail flat 20% off by spending over £99 & get upto 20% off. You need to use BASE20 to get flat 20 % off on all orders.
ReplyDelete