When it comes to taxes in Fort Lauderdale, there is one very important rule. The longer you wait to file, the more difficult and stressful your life will become. Procrastination also increases your chances of making crucial mistakes and overlooking many ways to save money. Believe it or not, the best way to save on your 2016 taxes is to complete them before the end of the year. Before you start celebrating on New Year’s Eve, it is never too early to get started on reducing your tax bill to Uncle Sam. Here’s how.
Make Donations to Charity
Contributing to a charitable organization or cause is not only a good deed, it can also help you save money when it comes time to file your taxes. But time is running out. Make sure you have submitted all your donations before January 1. All checks must be postmarked no later than December 31 and all items need to be sent before the end of the year. Make sure to take the time to properly document all donations.
Pay Off Your Major Expenses
If you are expecting your tax to increase in 2017, it is best to pay for all your major expenses now. For example, if you own rental property, make sure all the maintenance expenses are paid before January 1. If your son or daughter has a college tuition bill due in January, pay it off now. All of these payments can be used as itemized deductions.
Sell Unwanted Stocks from Your Portfolio
Countless people throughout Fort Lauderdale currently have money invested in mutual funds and stocks. It is important to pay taxes on any distributions before the end of the year. Another thing to consider is selling off stocks that are trading at a loss before the end of the year. However, it is important to remember that repurchasing those holdings within 30 days will violate wash sale rules, costing you the deduction. Only sell those stocks you definitely no longer need. You are also allowed to deduct up to $3,000 of capital losses each year.
Anticipate Tax Law Changes
The recent election of new President Donald Trump along with a Republican majority in the Senate and House of Representatives promises to bring significant changes to the current tax laws. Fort Lauderdale residents need to stay on top of changes to place themselves in the best position to save money when it comes time to file. For example, individual tax rates are expected to be reduced next year. Because of these changes, now is the time to take advantage of these deductions while tax rates are currently higher. Once the tax rates lower, expect gains to be less costly.
Do you have questions? A Fort Lauderdale tax lawyer can help
Tax law can sometimes get complicated. Whether you are struggling with back taxes or currently involved in a dispute with the IRS, it is important to seek advice from a legal professional that can provide viable solutions. To learn more on how a Fort Lauderdale tax lawyer can help resolve your tax problems, contact the law offices of Zuckerman & Mata, LLC and schedule a consultation to discuss your case.