Go Freelance Jobs

10 rewarding tax tips as advised by Ted Bauman

Ted Bauman is a finance guru. He was a fund manager for 25 years. In December 2017, he proposed several tricks that will help taxpayers save when they file their taxes come April. His recommended strategies would ensure that people paid less in taxes. These laws were bound to change.

The changes

The upcoming changes apply to proceeds earned in 2018 and after. They will reduce the rates of tax temporarily. Therefore, before looking at the tips, it is crucial for everyone to appreciate the effects of the tax bill passed recently by the legislature. View Related info Here.

Ted Bauman’s tax tips

  1. For Americans with 2018 mortgage interests, repay them before the end of 2017. You should not forget to deduct the expenses for both years while filing the tax returns. It could be impossible to do this later due to the new limits and increased standard deductions.
  2. Pay the medical services in December, but remember to deduct them in April. Changes to the income threshold will allow more people to deduct health expenses from their 2017 and 2018 income. The Affordable Care Act would still be active for another year.
  3. Make your philanthropic donations before January 1, 2018. Make sure to keep your receipts.
  4. The legislators agreed not to abolish student loan interest deduction. It would, therefore, be more beneficial for you to pay interests in 2017 as compared to 2018.
  5. Buying a car in 2017 will allow you to deduct state sales tax in April.
  6. For independent contractors with high state income taxes, try to convince clients to pay in 2017. This will boost federal deductions.
  7. It is more sensible for taxpayers to request their bonuses in December 2017 than January 2018. Delayed
  8. For every businessperson and people with retirement accounts, consider switching to Roth IRAs depending on the kind of financial sense it would make.
  9. IRS rules were to allow 1031 swaps for real estate businesses starting January. Therefore, business owners should complete trades before 2018. This could benefit companies who intended to swap their physical assets.
  10. It is a good time to establish limited liability businesses in 2018. Operating as LLCs would reduce taxes according to the new code.

Related Article:https://www.bloomberg.com/research/stocks/private/person.asp?personId=264684898&privcapId=109183793&previousCapId=109183793&previousTitle=The%20Sovereign%20Society