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.

Click Here for Helpful Videos

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

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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

Click Here for more information on Deductions for Tenants