TION NOW TO MAXIMIZE YOUR SAVINGS AX PLANNING STRATEGIES
WIN OF THE MONTH: A Client Success Story With an 88% Reduction Review Business Expenses For business owners, now is the time to review your expenses and determine whether any purchases should be made before year-end. This could include buying new equipment, which might qualify for Section 179 deductions or bonus depreciation, effectively lowering your taxable income. Additionally, review your income and expenses to ensure you’re taking full advantage of the Qualified Business Income Deduction (QBID). Maximize Health Savings Accounts (HSAs) If you’re enrolled in a high-deductible health plan, contributing to an HSA can provide triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. For 2024, the contribution limits are $3,850 for individuals and $7,750 for families, with an additional $1,000 catch-up contribution for those over age 55. By taking action now, you can reduce your tax liability and position yourself for a successful 2024. If you need assistance implementing these strategies, call our sister company, Golden Tax Relief, at 844-229-8936 for help today. Don’t wait until the last minute — start your year-end planning today!
you can deduct the interest in the current year. Charitable donations are another area where timing can make a difference. By making donations before the year ends, you can increase your deductions for the current tax year. On the income side, if you anticipate being in a lower tax bracket next year, consider deferring a year-end bonus or other income to January. Charitable Giving Strategies Those looking to make a substantial impact should consider establishing a donor-advised fund (DAF). A DAF allows you to make a large contribution now, take the immediate tax deduction, and distribute the funds to charities over time. If you’re over 70½, you can make a Qualified Charitable Distribution (QCD) directly from your IRA, which can satisfy your required minimum distribution (RMD) while also providing a tax-efficient way to give. Harvest Tax Losses Tax loss harvesting involves selling investments that have decreased in value to offset gains from other investments. This strategy can help reduce your overall capital gains tax. Just be mindful of the wash-sale rule, which disallows the loss if you repurchase the same or substantially identical security within 30 days before or after the sale.
A 68-year-old insurance agent faced significant
CASE SNAPSHOT Client: Individual Taxpayer Type of IRS Issue: Personal Income Tax Tax Years in Question: 2012–2020 IRS Claimed Liability: $30,999.93 Savings: $27,362.93 (88%)
income tax liabilities for the years 2012–2020, totaling $30,999.93. Despite initial challenges, including the need to appeal the first Offer in Compromise (OIC) decision, we successfully secured an 88% reduction in the tax debt, saving $27,362.93.
The financial situation was complicated by the client’s wife’s dependence on Social Security disability and their home ownership, which initially seemed to disqualify them from an OIC. However, we were able to negotiate a reduced valuation of the home due to substantial repair needs, including foundation issues stemming from major plumbing problems, which ultimately helped us achieve a favorable resolution.
3
WWW.IRSTROUBLESOLVERS.COM
• www.newsletterpro.com
Made with FlippingBook Ebook Creator