October marks the start of the fourth quarter of our tax year. Using tax-planning strategies can help you wrap up the year with ease and give you a strong start for the next tax year. Below are some tips that will help make a big difference in your taxes.
Make a List of Itemized Deductions
One perk of owning a business is that the costs of doing business are tax-deductible. Make sure you aren’t leaving money on the table by failing to deduct a business related expense. Start making a list of expenses and gathering receipts (just in case you’ll need them) for business related expenses from the get-go, so that nothing is forgotten. Examples of business related expenses might include general and administrative expenses (office rent, utilities, employee salaries, office supplies, etc.), business travel, business automobile expenses, client entertainment, and seminars.
Review your Assets
No one ever wants to see a loss of capital on any of his or her capital assets (investments, real estate, etc.). However, if you suffered a capital loss (total capital loss minus total capital gains) in the last year you can deduct that loss (up to a maximum of $3,000), or a portion of that loss, on your taxes. If you cannot deduct the entire loss, the remaining amount may also be carried over for a possible deduction in the following year.
Verify Capital Loss Carryover
If you suffered a capital loss the prior year that you did not deduct, you may be able to deduct that loss, or a portion of that loss, this year. In any given year, you can deduct up to $3,000 for capital losses, so if you have less than $3,000 in capital losses this year and have capital loss carryover for prior years, you will want carryover your loss and maximize your benefits.
Donate to Charity
Donations to charities are tax deductible, but you’ll want to verify that the charity you choose to donate to is registered as a 501(c) 3 with the Internal Revenue Service. Only donations to charities registered as a 501(c) 3 are tax deductible.
Once the turkey hits the Thanksgiving table, it’s most likely going to be whole-heartedly consumed no matter the style. Make the meal a little more special with one of these four turkey recipes to try this Thanksgiving in Pascagoula courtesy of Mestayer Law Firm.
Delay Additional Income
Depending on where you fall in your tax bracket and what tax bracket you think you will be falling in next year, it may be in your best interest (if possible) to delay additional income until after year end to keep taxes at a minimum. Don’t push yourself into the next tax bracket this year if you believe you will be making less money next year.
All in all, tax laws and regulations are complex. While the tips and strategies above apply to most businesses, there can be differences in tax rules and tax planning strategies depending on whether you have a C corporation, S corporation, partnership, or limited liability company. Therefore, your very best tax-planning strategy is to talk to a lawyer that specializes in tax law. A tax lawyer can give you guidance that is tailored to your needs and the needs of your business. Bonus: Your attorney fees may be tax deductible!
Mestayer & Associates provides civil litigation for clients throughout the Gulf Coast area including Pascagoula, Biloxi, and Gulfport. If you are making future plans for your estate, then contact us today and let us help take care of every detail of your finances. Call us today at 228-762-1193 or visit www.pascagoulalaw.com. We are your legal experts! You can also visit our office located at 2128 Ingalls Ave. in Pascagoula, Mississippi. We look forward to talking with you!No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors, or mistakes.