6 TAX PLANNING TECHNIQUES EVERYONE SHOULD KNOW
SHIFTING DEDUCTIONS Deductions can also do a bit of time travel. These expenses can be paid in one year or the next in order to place them wherever they’ll yield the greatest tax benefit. DEFERRINGTAX Continuing the time-splitting theme, certain investments and pension plan contributions allow you to defer taxes on parts of your income until some future year, making this a great long-term strategy. TAX-DEDUCTIBLE EXPENDITURES Provided you meet certain requirements in the tax code, some of your expenses may be deductible. With proper planning, you can structure your affairs to make many of the things you enjoy a deductible expense — supporting your lifestyle while saving you money.
Whether you’re scrambling to get your taxes done this year or looking for ways you can reduce the damage in 2020, it never hurts to return to basics. Where tax cutting and tax planning are concerned, there are no great secrets to success. However, six fundamentals will save you money when tax season comes knocking. INCOME SPLITTING The way you divide up your family’s taxable income as a whole can have a huge impact on the rate you pay. By splitting these earnings among several family members and/or legal entities, a larger portion of your total income will be taxed at a lower rate. SHIFTING INCOME Just as you can split income between family members, you can shift parts of it between years. Certain types of income such as bonuses, dividends, and year-end payments can be moved into the following tax year, which can result in more savings.
TAX-EXEMPT INVESTMENTS The one thing better than growing your money is growing your money for free. Selecting tax-exempt investments at the federal or state level, such as many mutual funds, can net you a significant tax advantage. Using these techniques in ways that optimize your tax savings is the backbone of any tax strategy. Want to learn more? Give us a call at 614-408-0004.
SUDOKU
VEGAN BANANA PANCAKES
Inspired by My Darling Vegan
Breakfast in bed just got a whole lot yummier with this vegan banana pancake recipe.
INGREDIENTS
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1 1/2 cups flour
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2 tbsp maple syrup
2 1/2 tsp baking powder
2 tbsp coconut oil, melted
1/2 tsp salt
1 tsp vanilla extract
2 extra ripe bananas, mashed
Cooking spray
1 cup soy milk
DIRECTIONS
1. In a small bowl, combine flour, baking powder, and salt. 2. In a separate bowl, whisk bananas, soy milk, maple syrup, oil, and vanilla together. 3. Add dry ingredients to wet ingredients and stir. Don’t overmix. Lumps are okay. 4. Spray a heated pancake griddle with cooking spray, and scoop 1/4 cup of the mixture onto the griddle. Repeat until the griddle is filled. 5. After 3 minutes or when bubbles appear, flip each pancake. 6. After each pancake has risen to double its initial height, remove from griddle. Repeat as necessary until batter is gone. 7. Serve with your favorite toppings!
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