There's a reason why old quotes like this one stand the test of time - wise words don't expire.
There are many events that occur during the year that can affect your tax situation. Annual preparation of your tax return involves summarizing transactions and events that occurred during the prior year.
In most situations, treatment is firmly established at the time the transaction occurs. This means that we usually can't change the tax treatment of an event after the fact.
However, negative tax effects can be avoided by proper planning.
(Hint: Google is not a reliable source.)
Please contact us in advance to schedule a planning session if you have questions about the tax effects of a transaction or event, including the following:
• Pension or IRA distributions.
• Significant change in income or deductions.
• Job change.
• Marriage.
• Attainment of age 59½ or 72.
• Sale or purchase of a business.
• Registering a business entity - LLC, S-Corp, C-Corp, DBA, etc...
• Sale or purchase of a residence or other real estate.
• Retirement.
• Gifting money and/or property to family or friends.
• Notice from IRS or other revenue department.
• Divorce or separation.
• Self-employment - including side gigs, LLCs, and Sole Proprietorships.
• Charitable contributions of property in excess of $5,000.
Knowing the effects of these transactions can help you plan to avoid paying more taxes to the IRS and state, reducing your stress and saving your family money in the process.
Kent County Tax Pros
Call/Text: 401-889-3668
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