When you outgrow the "fast food" of tax services and are ready for tax strategy, Richardson & Associates can help you. We can help you plan for the future and review your previous returns.
We act as your personal tax advisor and are dedicated to making sure you make sound personal and business decisions tax wise. Whatever you need to do, whether you need to sell your home or purchase new facilities for your business, we are always by your side to advise you on your tax matters.
We also conduct high-quality tax research for our clients at an affordable rate to identify tax risks and savings opportunities and develop strategies to ensure tax optimization.
Tax Saving Tips
As we approach year end, you have limited time to do some year-end tax planning but it is still not too late! Just act fast and follow some great tax saving tips from Richardson & Associates Tax team to maximize your tax savings. Always remember we are “Accounting for Your Success”®!
Accelerate Income and Maximize Deductions
Accelerating income is an especially good idea for taxpayers who anticipate being in a higher tax bracket next year or whose earnings are close to threshold amounts that make them liable for additional Medicare tax of 0.9% on their tax returns.
Here are some great examples/ tax saving tips to accelerate income.
In the meantime, you can do the following to maximize tax deductions if your tax bracket is expected to be higher in 2016:
Strategize Tuition Payments
The American Opportunity Tax Credit, which offsets higher education expenses, was extended to the end of 2017. It may be beneficial to pay 2016 tuition in 2014 to take full advantage of this tax credit, which is up to $2,500 per student.
Investment Gains and Losses
Starting in 2013, a 3.8 percent Net Investment Income Tax is applied to investment income such as long-term capital gains for earners above certain threshold amounts. This is something to think about as you plan your long term investments. For example, taxpayers below threshold might want to take gains; whereas taxpayers above threshold amounts might want to take losses.
You might also minimize taxes on investments by tring to avoid short-term capital gains, which are usually taxed at a much higher tax rate than long-term gains. If your tax bracket is either 10% or 15%, then you might want to take advantage of the zero percent tax rate on qualified dividends and long-term capital gains. If you fall into the highest tax bracket (39.6%), the maximum tax rate on long-term capital gains is capped at 20% for tax year 2013 and beyond.
Maximize Retirement Plan Contributions
Year-End Giving To Reduce Your Potential Estate Tax
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