Taxes can be minimized and the amount you pay is not fixed. Minimizing your taxes requires using to your best advantage the laws, regulations, court decisions and rulings that are issued for your guidance. All are accepted and even recommended ways to help you pay your share, but not more than your share, of the federal tax bill.
Year-end tax saving ideas for individuals may include: deferring income, prepaying deductible expenses such as real estate taxes or state income taxes, giving to charity, and/or giving to yourself through investments that are tax deductible to name a few. And don’t miss out on TAX CREDITS which directly offset the tax you owe. Federal tax credits like the Adoption Credit, Child Tax Credit, and Earned Income Tax Credit. State tax credits like the Family Tax Credit, Neighborhood Investment Credit or Senior Citizen Tax Credit.
Year-end tax saving ideas for business may include: Section 179 Depreciation, Bonus Depreciation, Expense using new “de minimis” Rule, deferring income, accelerating expenses, or revisiting your business structure to name a few.