Keep these tax tips in mind throughout the year. You’ll be better prepared for next tax season, and you’ll also make better financial decisions.
Consult your tax professional before taking any major financial steps. Right before the 2014 tax-filing deadline, several people come to our offices with questions after they made major financial decisions, so it was too late to help them.
Some of them cashed out their IRAs, some of them sold a property in a short sale, others earned thousands of dollars from their online website without filing as a business—the list goes on and on. Call our office for help throughout the year and not just right before tax time.
Talk to your tax pro before you get married. Consider having the unromantic yet necessary tax and money talk with your fiancée before marriage, and get our tax pro involved. This can help ensure that you both start the marriage with open eyes and are able to deal head on with any tax, financial, or credit problems.
If you’re contemplating a divorce, include a tax professional in the discussion. Divorce attorneys may know a lot about family law, but they appear to know nothing about tax law. You should consult our office on issues such as who gets the tax benefits for the children each year and who gets which assets.
You may think you’re evenly splitting the money and assets, but some assets—such as stock, retirement accounts, IRAs and real estate—have heavy taxes associated with them when you sell them or cash them out. It’s important to understand the implications.
Have a business? Start your bookkeeping right away. The sooner you log your sales, mileage, travel, meals, and other expenses, the sooner you’ll know if you have to make changes to the way you do business. Are you undercharging clients or overpaying vendors? Is that why you’re always broke at the end of the year?
Also, be sure to set aside money for your estimated taxes so you don’t fall short when it’s time to pay.
For more information about tax planning contact one of our offices: Plymouth 734.454.4100, Allen Park 313.388.7180, Grayling 989.348.4055, Royal Oak 248.399.7331, Saginaw 989.782.1985, St. Clair Shores 313.371.6600