End of Year Planning: Options for Your Business and Personal Taxes
As this year winds down and the new one appears on the horizon, it's time to start figuring out what preparations you need to make and purchases that need to happen before the new year arrives.
Here's a quick look at some options you may want to keep in mind when planning for the end of this tax year.
Make any last-minute charitable donations
Whether you're going through your closet for old clothing or donating cash to a local organization, you'll want to make sure you have the paperwork in order before the end of the year. Remember that if you donate more than $250 worth of material items to a charity, the IRS requires a written acknowledgment of the donation from the charity.
Look into retirement savings
If you're not currently maxing out your retirement benefits but will fall close to the bottom of your income tax bracket, making additional deposits into an approved retirement savings program can help you move from a higher tax bracket to a lower one. This, in turn, allows you to save more money on your taxes, giving you additional funds to roll into other purposes at the end of the year.
Maximize itemized deductions
This year may be the last year for a number of expenses that have been used f
or itemized deductions in the past. If you have any expenses that may be itemized, make sure you pay them before the end of the year to be able to claim them on your taxes.
Deduct your taxes
As with itemized deductions, you'll want to pay your taxes before the end of the year for itemization. If you're thinking about buying a car or other high-ticket items, you may want to do so before the end of the year so that you can claim the sales tax on that item as a deduction.
By taking advantage of some of these possibilities, you can help lower your tax burden while you still have time to research your options and find the right solution for you or your company. If you need help figuring out exactly what possibilities are the best for your tax situation, please feel free to contact the experts at AccountRely today. We're always ready to help your business grow.