A Few Tax Tips for 2018-19 by: George Mentz JD MBA CWM
1. Software - Use the most reliable CPA or Tax Software.
2. Records - Consolidate and separate your online or hard copy records. Download year end files while they are available.
3. Income - Strategically defer income.
4. E-File - The USA and some Countries allow for a free e-Filing of your taxes online.
5. State Issues - Because some states have high taxes, consider tailoring your income, entities or donations to be effective for that state.
6. Consider paying bills now to obtain more deductions for this year.
7. Gifting - Take advantage of annual exclusion gifts to fund college for loved ones or make gifts of stock or cash loved ones.
8. Charity - Do some extra charitable giving to causes that inspire you.
9. Pre-Pay for your advertising now for 2019 to capture expenses?
10. Get your health care coverage and plan in place before year end.
11. Sell investments with losses and sell winning investments if possible to balance the sale to create no taxes. Remember, long term losses offset long term gains.
12. Maximize your retirement plan contributions. Example: USA, the maximum amount of money allowed to put in your retirement accounts is ($18,500 for 2018, $24,500 if you are age 50 or over).
13. Take your required minimum distributions (RMDs), Thus, start making regular minimum distributions from your traditional IRA by April 1st following the year in which you reach age 70 ½.
14. Engage in tax loss analysis, documentation or harvesting if allowable.
15. Flexible spending accounts - money that goes into the account for medical related bills avoids both income and Social Security taxes. You may have use it or lose it rules, thus spend on medical before Jan 1st or call your office to make sure your plan carries over the money to next year for a grace period.
16. Tax Prep Help - If you have trouble with filing, go to your local tax preparation office and ask for help. Usually the fee is small and they can get your refund fast.
** Many tips taken direct from the IRS website. Consult with a licensed professional before making any important decision.
American Academy of Financial Management