Tax-Saving Tips

It is already the middle of 2019 and you probably are still thinking about reducing your tax money. With so much time already elapsed, you are left with short of time and still, there is a lot to do.

Earning big money is off course tempting, but you can’t deny the fact that with big money comes big taxes. We understand that tax planning is boring but you need to really jump into this if you really want to save money. Hiring professional accountants is always recommended because they have the skills to reduce taxes with their proven tax-saving skills. If you want to do it on your own, given below are some of the tips that you need to follow in 2019.

Make More Contributions To Your Retirement Plans

It indeed is one of the best ways to save your tax money. What you have to do is establish retirement accounts and contribute more money to it. The money that is submitted to the retirement account is later on deducted from your income taxes. The best part of establishing a retirement account is that you also get investment earning from those accounts but you don’t have to pay tax for that.

Ditch Bad Investments

If there are some bad investments like the ones which are not generating profits, it is high time to dump those investments. For instance, if you have invested in mutual funds and the losses have reached up to $3000, you should probably think of selling them. If you don’t do that now, chances are that you are going to carry those losses to the next tax year.

Establish Charity Funds

Even If you hire an accountancy firm to help you cut short your tax expenses, they would advise you to establish a charity fund and start donating for your favorite charities. Doubling up your deductions is the best way to claim your deductions.

Don’t Overlook Medical Deductions

Establishing a health saving account is highly beneficial as it covers all your medical expenses. Most business owners buy health insurance, however, they still need to understand that there is a difference between health insurance and having a health saving account. When you establish this account with your bank, you also get deductions in your insurance plan. The money that you submit in this account is yours forever and you can withdraw it, once you reach at the age of 65. It indeed is one of the most important tax-saving tips that you must follow.

Get Benefit From Exclusion Gifts

In 2019, they have increased the gift tax exemption amount from $14,000 to $ 15, 000. You can easily save tax on this money by donating a gift to a family member. Parents can event donate gifts to their children and save their tax money by utilizing it within their home. These exemptions are made on a yearly basis and you don’t have to worry about lifetime exemption limit.

Make Depreciation Deductions

Depreciation Deductions

Depreciation is the best opportunity to reduce your money. No matter if you are a small business owner, you will get this opportunity every year. All you have to do is buy some new equipment and take write-offs on those purchases. To enhance your depreciation deductions, you can also buy vehicles. So, what you are waiting for, if you are running a business, just talk to your tax preparer and make some new purchases.

Bottom Line!

Do not forget to follow these tips, if you want to save your tax money. These simple tips are truly awarding when it comes to cutting short your tax expenses.