As you are getting ready to file your 2015 taxes, here are some things to consider! These tips are provided by our accountant, Kelly Taylor.
1. ROTH IRA’s. Use ROTH IRA’s to fund your children’s education. 529 plans are not the only way to save for a child’s education! Each year you can contribute up to the amount of earned income they have in a given year to then grow tax free and all proceeds can be used for higher education.
2. The Residential Energy Credit and the Advanced (Alternative) Energy Credit. For Real Estate owners, this credit is available for both 2015 and 2016 – the Advanced Energy Credit is 30% of any solar, geothermal, wind or other alternative energy option. This can amount to great savings upon installation and will continue to save year after year by creating an ongoing energy savings. This credit is available for both residential and commercial property. The Residential Energy Credit is just what it says – it is for primary residence only and includes energy efficient property such as windows, exterior doors and qualified units such as HVAC.
3. Health Savings Accounts. Open a Health Savings Account if you have a high deductible medical plan – HSA’s work just like a savings account with a checkbook and/or debit card. Most banks or investment advisors can help you set this up. You get an instant deduction for contributions made, and the contributions unused for medical expenses can roll over indefinitely and grow tax-free (similar to the assets in a retirement account).
4. Personal vehicle expenses. Unreimbursed vehicle expenses are another frequently overlooked tax break. You can’t deduct commuting costs, but if you travel to satellite offices or drive your own vehicle for business and aren’t reimbursed, you can deduct mileage costs.
5. Itemize. Taxpayers that itemize will be able to deduct State and Local Sales Tax instead of withholdings tax if it is more beneficial. Remember: if you purchase large ticket items such as automobiles please let your tax professional know how much sales tax you paid and to determine which deduction will benefit you most!
Are you looking for a new accountant to help advise you on your taxes? Kelly Taylor is offering a 5% discount to Dani Beyer Real Estate’s clients! Her contact information is listed on our resources page!