Thinking about the current year’s taxes when you’ve just finished paying the bill for the previous year can be stressful, but the benefits of planning ahead can be extremely worthwhile.
Decisions you may not even realize can positively affect your tax liability, but if delayed too long, or certain criteria aren’t met, you could lose the tax benefit. An example that is commonly overlooked would be the potential deductibility of moving expenses when moving for a job. In contrast, there are decisions that can negatively affect your tax liability, like deductions that are limited based on your income. You may think a tax benefit is coming your way; but in reality, the IRS has set limitations on how much you can deduct. For instance, when making charitable contributions, or paying real estate property taxes, proper planning will aid you in determining the best year to make the deductible payment.
To make sure you’re receiving all the tax benefits and avoiding all the limitations possible, it’s a good idea to touch base with your tax advisor several times throughout the year, especially towards the end of the year to discuss topics, such as:
• The projected amount of tax you may owe
• Upcoming taxable/deductible events that may occur and
• Decisions that you can make to decrease your tax liability
The most important thing to remember is, don’t wait until the year is over to worry about the amount of tax you may owe, because once the year is finished, there is little to nothing you can do to decrease your tax liability.
Reach a tax advisor to begin planning and saving today at 214-871-7500 or send us an email at AskUs@lgt-cpa.com.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email email@example.com.