Knowledge is power, but what if you don’t have time to find out what you need to know about how to save on your taxes?
Williams & Kunkel, CPAs, LLP offers the following tax strategies that could truly help you and your family this tax season:
1. Take tax deductions for capital loss
If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000 ( $1,500 if you are married and filing separately). However, you may deduct capital losses only on investment property, not on property held for personal use.
2. Maximize your retirement funding
You can contribute up to $5,500 to an IRA in tax-year 2014, or $6,500 if you are age 50 or older. Workers in the 25 per cent tax bracket who contributed $5,500 to an IRA would save $1,375 on their 2014 tax bills.. If you make a deposit between Jan 1 and April 15, you need to tell the financial institution which year the contribution is for. Don’t forget to check your eligibility and find out the deadline for the 2014 deduction.
3. Advisory fees are tax-deductible
Always take a moment to inquire with a financial expert before finalizing your taxes. At Williams & Kunkel, CPAs, LLP, we are happy to provide a free initial consultation so you can learn how to benefit the most during tax time. For all the advice and expertise we can apply to your situation, our bill may only be negligible compared with how much you could save on your taxes.
4. Gift assets to children
You don’t even have to file a gift tax return on an asset that’s valued less than $12,000, which is not taxable. If the fair market value of the gifted asset is more than $12,000 per person per year, but less than $1 million, there is the requirement of filing a gift tax return, but you won’t be taxed. The gift still is not income taxable to the recipient.
5. Deduct a home-based office when used for your employer
If space in your home is used exclusively and regularly for business, you can count that as a deductible too. Calculate the square footage of your home office and divide the area of it by the area of your house. If the percentage is 14 per cent, for example, that represents the percentage of your total home expenses that can be allocated toward the home office deduction. If you have further questions, please check with us.
Working hard to save you more in taxes than our overall fees
At Williams & Kunkel, CPAs, LLP we’re dedicated to helping our clients succeed by providing the highest quality, most proactive, timely and affordable accounting and tax services available today.
Contact us today for a free initial consultation by emailing or calling our Flower Mound office at 972-446-1040 to talk about your taxes.
Need more tax planning help? Read more at Williams & Kunkel, CPAs, LLP Tax Planning and Preparation Services