3 Ways to Love Your Taxes Now

Author: Robert Kinghorn
Date Published: June 30, 2014
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How much do you enjoy doing your taxes?

"As much as sitting in a tub full of scissors."
"I'd rather shave with sandpaper!"

You're in good company. Maybe you especially don't like doing your taxes if you're a local business owner in Peachtree City. Here are 3 ways to Love Your Taxes in the here and now without any long-term commitment, trips to the flower shop or chocolates. And the best part? Your taxes may very well just love you back!

Why should I love my taxes right now?

1. Tax Planning:

Procrastinators of world UNITE! Tomorrow... Why should you do your tax planning now?

A. CPA's have TIME from July - December.
B. CPA's have NO time from January - April.

Tax Planning is a lot like training for a marathon. It's a huge pain now, but could kill you if you aren't ready when the time comes. The goal is simple: reduce your taxes by reducing your income, increasing your deductions, and taking advantage of tax credits.

- Use a Filing System: W-2's, Receipts, Recorded Contributions to Charity, etc. Keep it all in a place you can find.
- Understand Tax Deduction and Tax Credits: If you are getting a school loan you can deduct the interest that it accrues (doesn't work for credit cards).
- Use an IRA: this money can go in tax free and you can also claim a deduction each year for the amount you contribute to the account ("The Man" spends less time taking money out of your pocket).

2. Options are Wide Open

Especially for small business owners tools like a 401k, Roth IRA or even profit sharing take time to set up. (You find a broker or firm to hold your money, transfer it to them, choose how to invest it, etc.). (Bottom Line: If you don't have a retirement account, talk with your accountant or tax specialist about getting one before you need dentures.)

Additionally one of the biggest tax planning tools that has been greatly reduced for 2014 (expired) is the Section 179 deduction. This code section allows for a business to expense the purchase of capital assets such as machinery, equipment, furniture, vehicles and fixtures to name a few.

3. Amended Tax Returns

The words 'tax return' are a lethal combination that can turn anyone into a grumpy Gertrude or Johnny Raincloud (with the exception of a good accountant). An amended tax return can allow you to add in deductions you missed and save you money and get back money you already paid. Your tax situation may change with ANY income altering event: births, deaths, a move, a vehicle purchase or sale, even if you just picked up day trading. Let your accountant know about any changes so you don't have to backpedal and try to get back the cash you could have had.

Special Thanks To

We would like to thank Wayne of Harrison Accounting & Consulting in helping us put together this information. Wayne is a CPA and the owner and operator of Harrison Accounting & Consulting in Peachtree City.

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