Tax office top firms in Houston, Texas? Charitable deductions. If you made small gifts, you may not have received any acknowledgment from the organization, but you can still deduct these contributions as long as you have a canceled check or other proof. Consult last year’s list of organizations you donated to and see whether you made similar gifts this year. Whether you do your own taxes or hire someone else to handle it, keeping good records will save you time and, in the case of a paid preparer, money. The earlier you start, the more smoothly it should go, and the sooner you’ll have put the process behind you for another year.

If you own a business, restructure your business entity, particularly if you are operating as a sole proprietor, LLC, or an S-Corp. The taxes for a C-Corp are lower at the top than for other business structures. However, there’s also a new 20% deduction of business income for pass-through entities. And, if you hire your children, you can pay them without withholding or matching payroll taxes if you have a sole proprietorship. You should work with an accountant to determine if restructuring your business is worthwhile. Invest in tax-exempt bonds. Any interest you earn is not subject to federal income tax and from Medicare surtax calculations. Also, municipal bond interest for bonds purchased in the state where you live is exempt from state income taxes, too.

Consult a tax professional before making any decisions that can affect your business tax return or spending money for the sole purpose of saving on taxes. Make sure you select someone who can help you all year, not just at tax time. Consider hiring an expert who can represent you before the IRS in case you’re ever audited. An enrolled agent might be your best bet. These professionals are designated by the IRS because they’ve passed a strenuous, three-part test, or because they actually worked for the IRS at some point. Note: These tips are not intended to be tax advice, but only to give you some tax-saving ideas to discuss with your tax professional. Every business is unique, and tax laws change frequently. Read additional details at https://greentree.tax/tax-preparation-service-in-houston/.

Slow Down to Save Taxes. If you buy a house or condo, fix it up and then sell it in less than a year, you’ll pay taxes on the profit at ordinary income tax rates (10%, 12%, 22%, 24%, 32%, or 35%) based on your income. Hold it for more than a year and you’ll be taxed at the lower long-term capital gains rates (0%, 15%, or 20%), depending on your income. You may decide it is worth it to you to flip the property quickly, but if you get caught in a slower market and can’t unload it quickly, you’ll save a lot on your taxes by holding it more than a year.