From our tax services in Orlando office we say, “Congratulations, you are now a homeowner”! Finally, you have a place that you can call your own. Homeownership has so many benefits; we are sure you are already aware of these. Among them, tax advantages are a notable one. When you buy a home, you are entitled to so many deductions and credits that have a significant effect on your tax bill. Do you know what these are? Hire reputed tax services Orlando and they will brief you about them. For right now, we will quickly go over the main ones.
Until you have paid off the full amount of your mortgage, you can enjoy this deduction year after year. Whatever interest you pay to your lender for the tax year, you can deduct it from your expenses. Your lender will provide you with a form, which contains all details about your mortgage such as the monthly payments, outstanding amount and so on. You will have to submit this document with your tax return.
For the tax year in which you buy the home, you can deduct the mortgage points or the origination fees from your taxes. It does not matter whether you pay them or the seller does; they are deductible in both cases. Please consult your tax services in Orlando to confirm.
Please note that you are allowed to deduct the full loan origination fee for the tax year in which you buy the home. If you do this the next year, you will only be able to deduct a fraction of the fee. The remaining portion will then have to be deducted every year throughout the loan term. Obviously, the former option provides you with a better tax advantage, but that is for one year only.
Property taxes can be claimed whether you are living in the home, or using it for vacation purposes. And you can deduct the full amount; there are no sort of limitations in this regard.
Home Equity Lines
Have you taken a home equity loan? You will be paying an interest on this as well. Deduct this from your taxes until you have paid the entire loan amount. This also goes for both your primary residence and vacation home.
Just as you can deduct the interest amount of your first loan, you can also deduct the interest amount on your second home as well. But the total interest amount on both your first and second mortgage should not be greater than $1 million. You can also deduct property taxes on this mortgage.
Set up an office in your home, and you might be eligible for some additional deductions with a maximum limit of $1,500.
So do you like the above deductions and credits? We love them so much and we avail them every year. Now it is your turn to use them. If you have any queries, take help from a reputed tax services in Orlando and they will guide you.
Paying Lower Taxes: End of the Year Advice for Business Owners
As the end of the year draws near, taxes become so confusing and you try your best to take steps that will minimize the amounts you pay to the IRS. This is why you should do taxes right from the start rather than at the end. But when the end is right on your head, you still have to do something about your situation. Take help form a reputed tax services Orlando, and they will guide you more about it.
For right now, we have some advice for you. Act on this before the year ends, and your tax bill will reduce.
Shift your cash flows
Most of businesses utilize the cash-based accounting system. This means that you have to pay no taxes until you receive an income. Similarly, you cannot claim any deductions until you make an expense. Point is that if your customers can pay you the bills after the first of January, the money will not be considered in your yearly earnings for this year. Ask them and it should be pretty easy for them to fulfill this request.
Buy some equipment
Do you need any equipment for your business or any other tool? Maybe you need a new computer, a laptop or a photocopy machine. Whatever it is, buy this before the year is over, and then you will be able to write it off as a deduction for this year. This should cut your tax bill by a significant amount if you are making a big purchase.
By the way, if you can, we suggest that you should by a vehicle for your business use. The IRS offers some great incentives for this. Ask your chosen tax services in Orlando for the details.
Pay your family or pay bonuses
Did your son help you with business this year or some other member in your family? Even if this was not the case, you can ask them to do it right now. Either add them to the payroll or appoint them as a 1099 general contractor. The money you give them, will be considered a business expense, but it will still stay in the family.
You can also give a yearly bonus to your top employees. They will work with more diligence, and you will not have to pay so many taxes.
Enjoy a vacation
Have you got a vacation planned for your Christmas? Good idea, you should take some time off. But why not schedule a business meeting or invite one of your clients for lunch during the trip? You will be able to deduct some of your holiday expenses.
The above suggestions will help you cut down your taxes. However, for next year, you should hire reputed tax services Orlando at the start of the year. They will sort your business finances, keep your books in order and ensure you are paying the lowest amount in taxes.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.