End Tax Strategies to Prepare for 2017

5 Year-End Tax Strategies to Prepare for 2017

Tax return: As a capital manager, we spend a lot of time helping customers save more of their income, both from wages, small businesses (or small businesses) and from their investments. Ultimately, the bottom line is that it increases their net worth because this is what will determine the income that their businesses can make when they retire. So regardless of the source at the end of the day. And there are many things that can deceive your earned money, including inflation, unexpected health care costs, and sudden repairs.

But perhaps the easiest to fight is the tax, even if you know where to look. That is why we spend a lot of time with our customers and their tax editors thinking and designing ways to reduce this bill until it’s too late. (For more information, see: Important fiscal movements for the end of the year for 2016).

When we approach the end of the year, the clock really turns, but there is time for action. The key to all the tax strategies used is to visualize the unique customer situation. No strategy works for everyone, and in every scenario there should be a lot of thought and planning to make the best decision.

And here in this spirit, here are some of the many tools we can choose to reduce the tax bill when it comes to Tax refunds by the end of the year.read more about Tax refunds at https://www.irs.gov/

End Tax Strategies to Prepare for 2017

Return your income

If you have the opportunity to postpone your income from 2016 to 2017, it may be very clever for that in certain circumstances. For example, suppose this year you are in a high tax group, but slowly to retire or leave in 2017 with work. In this situation, it may be prudent to postpone your income in 2017, which may allow you to be taxed fundamentally. Since the current income tax system is very progressive, savings can be significant.

For example, you can Tax return the rate from 39.6% (the highest rate) to 10% (the lowest). However, pay attention to taxes on social insurance and medical care, as they are limited to $ 118,500 (in 2016) but apply to the first income dollar in 2017. Therefore, if you are an independent employee and therefore pay both FICA, this may not be a good choice for you if you’ve already maximized social security taxes for a year.

But even if you do not earn much less in 2017, this may seem logical, as Trump’s new government wants to lower profit taxes at all levels. And with the congress controlled by Republicans alongside them, the chances of adopting this legislation seem fairly high. Therefore, from this point of view, it may be logical to postpone income until 2017, even if the situation in terms of income seems fairly stable.

Another way to postpone your income is a retirement plan like 401 (k), 403 (b), or SIMPLE IRA. Money can be diverted from your salary to these accounts and defer the taxes on that money, salary are usually manged by payroll services companies. Contribution limits of $ 401 (k) and $ 403 (b) have a maximum contribution of $ 18,000 in 2016. If you want to maximize your Tax return, you plan to pay your salary as much as possible in these accounts in the past several steps. Some plans also allow you to include 100% of your salary in the plan, so if you have a lot of money to pay for bills and buy Christmas gifts, this can be a reasonable option.

Collection of tax losses

Even though this sounds difficult, the collection of tax losses is actually very simple. In fact, only those investments that have lost value to make capital losses are sold, which can then be deduced from the gains made in 2016. However, in order to avoid changing the portfolio, a similar investment with the product. Just pay attention to the washing rules, which you can read on the IRS website.

Minimum distances required

Those who reach 70 or more years in 2016 and who have an IRA will probably need to get the minimum distribution they need from their account by the end of the year. The penalties for not having it are steep at 50%, so do not forget to take care of it until the expiration date.

Flexible Expense Accounts

Companies finance flexible expense accounts to allow employees to divert money from their payment checks for specific benefits such as dental care, vision and care.