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The Only Real Year End Tax Savings Tip
One Tip Only!
Yes, the tax tips are out.
It's called a day late, and a dollar short...in my opinion.
Based on over 35 years of experience, there is only one tip I can give you at the end of ANY year.
That is - PLAN for next year. That's right, there are no last minute strategies. Let's look at three popular ones for a moment:
1.) Sell stocks that are losers - that's right. Now the IRS plays the stock market. Who said they will ultimately be a loser? If you thought that at all, you would have sold it anyway. Besides that, the IRS only allows a loss of $3,000 each year, so if you have more than that, you do not get the full benefit right away.
Give To Charity
2.) Give more to charity: I love this one! The avereage person is in and about the 15% effective tax rate. So, give $1,000 to charity at the end of the year so you can save a whopping $150. Not sound cash flow management!
If you want to give to charity, give! The tax deduction is icing on the cake. Plus, with the rising standard deduction, this deduction has disappeared for many people.
Contribute to an IRA
3.) Put Money in an IRA. Once again, if you put $1,000 in an IRA ($1,000 that most people do not have), you only will get on average of $150 in tax savings. Plus that, many people are phased out of contributions based on income levels and being covered by a retirement plan at work!
The IRS even allows you to do this up untill April 15 of the following year! When you get right down to it, it is an absurd notion. People would rather take money they do not have and lock it up for years just to save pennies. Most folks, in my experience, end up pulling money out early then get a 10% penalty!
How Can You Plan For The Next Year?
Once again, the ONLY vaild tax tip at the END of a year is to plan for next year.
What exactly does that mean?
Can we really determine what our taxes will look like in the coming year. YES!
In the past, the big planning tips were targeted at home mortgage interest, real estate taxes, and charity. However, with the rising standard deduction, these targets have all but lost there impact for many people.
The only real way to lower your taxes, once again, is through a home based business. I have been challenging people for over 30 years to come up with a better way. No way has surfaced yet (besides leaving the tax system).
Having a home business allows the average person to open the door to many tax deductions that are only allowed for business owners. These include, but are not limited to:
How to write off vacations
Paying your children
And many more
Opening a home based business is easy and can be quite profitable. However, it does come with responsibilities.
This is your opportunity to get a special report on the "Top 3 Reasons Why You Should Have A Home Based Business" for just under 2 bucks! Why do I charge for this information?
Simple, if you are not willing to invest in your future, you will just waste the download!
Just click on the "click here" words below to get this report, which also includes a very easy home based business you can start in less than an hour!