July LNF Tax Tips
July 4th, hotdogs, hamburgers, apple pie, and taxes. Hopefully, you are able to enjoy the 4th with good health, friends, and some good food. Just as American as the 4th is the US tax code. As a CPA, one of the questions I get asked most frequently is how to reduce taxes. Our tax laws are complex and undergo frequent revisions. In 2017, the Job Cuts and Tax Act was passed; it was the biggest overhaul to our tax code since the 1980’s. The new administration is also looking to make some big changes to the tax law (at the time of this writing, nothing has yet been passed).
I believe that for many, with complexity, comes opportunity. You have the opportunity to use certain tax laws to your advantage. Some areas to consider are:
- What may happen to the estate tax laws?
- If you own a business, what type of entity have you set up and how is it affecting your taxes?
- Are you taking an itemized or a standard deduction, and what effect does that have on your taxes?
- Are you saving for retirement in a way that is also beneficial on your tax returns?
These are just a few questions to ponder. If you are unsure of how answers to these questions may affect your taxes, then you should meet with your CPA to do some tax planning in the Summer and early Fall. Doing so can frequently provide substantial tax savings. If you are not already working with a CPA and have questions, reach out to us at Jason@ossercpa.com.