Why pay Uncle Sam more taxes than you have to. You can save a bundle if you know how to take advantage of the laws allowed.
Five tax strategies for family-related breaks
Strategy #1: Put your children on your payroll. Do you operate your business as a proprietorship or partnership? Did your children under age 18 help you in your business this year? Then you should pay them for their work and pay them on a W-2.
Strategy #2: If you’re getting divorced, put it off until December 31. The law considers you to be married for the entire year if you get hitched on December 31. In most cases, a joint return will work to your advantage. Which means it may be better to wait until next year to finalize your divorce.
Strategy #3: Stay single to increase your mortgage deductions. Two single people can deduct more mortgage interest than a married couple. If you own a home with someone other than your spouse, and you bought it on or before December 15, 2017, you can individually deduct mortgage interest up to $1 million of a qualifying mortgage.
Strategy #4: Get married on or before December 31. If you’re married on December 31, the law considers you to be married for the entire year. If you’re thinking of getting married in 2020, you might want to rethink that plan. The IRS could make big savings available to you if you get married on or before December 31, 2019.
Strategy #5: Make use of the 0% tax bracket. Do you give money to your parents or other loved ones in order to make their lives more comfortable? Are your loved ones in the 0% capital-gains tax bracket? If they are, you can get an extra bang for your buck by giving them appreciated stock rather than cash.
Want to learn more specifics on how to take action by December 31, contact Meese Khan, LLP.
Phone: 623 935 1005