Tips on how to prepare for 2019 Tax Season
Tax season is upon us! Are you up to date on changes to the tax changes so that you maximize your return or minimize your payment? We have compiled some helpful information for you below.
IRS Provides Clear Test on how 20% deduction applies to rental income, exchanges as well as several very helpful videos on all of the changes.
Convenient apps to make tracking taxes easier. Check out TaxBot- Mileage and Expense Tracker on "Auto Pilot" so that it tracks your mileage as soon as you getin the car and it links with your bank account.
Be sure your using these tax cutting benefits below:
For Individuals:
Roth IRA
Roth 401(k) if employer's plan permits
Rollover to Roth IRA
Tax-deductible IRA
Child tax credit
Child care credit
Earned income credit
Annual gifts to reduce estate
Education savings accounts
Education expenses
American opportunity tax credit
Lifetime learning credit
Bunching deductions
Flexible spending accounts
Health savings account
Donating appreciated assets instead of cash
Qualifying property for personal residence gain exclusion
Best filing status
Shifting income or deductions from year to year
Adoption expense credit
For Investors:
Tax-free municipal bonds
Long-term capital gains
Rental property
Tax-free exchange
Low-income housing credit
Small business stock rollover
For Businesses:
Home office deduction
Keogh plan
SIMPLE plan
SEP
401(k) plan
First year expensing of business equipment
Year-end bonuses
Bad debt write-off
Disabled access credit
Other business tax credits
Tax-free exchange
Tax Tips For Rental Property Owners
You should be well aware of federal tax responsibilities if you are a rental property owner. All rental income should be reported on return plus any expenses to be deducted from that rental income.
What is Considered Rental Income?
You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use or occupation of property. You must report rental income for all your properties.
Security Deposits
Security deposits used as a final payment of rent are considered advance rent. Include it in your income when you receive it. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.
Click Here for more information on Rental Property Deductions and Record Keeping
Tax Tips For Tenants
-Deductions you may be able to claim on your return
Home Office
Renter's Tax Credit
Charitable Giving
Education Credits
Student Loan Interest Deduction
Self-Employed Income
Moving Expenses