How to Manage Your Taxes
Manage your taxes. Taxes is just another way of saying that you have one additional expense that comes out of your paycheck before you even get paid. We manage our lives, our businesses, our jobs, families, and our investments, so why not manage your taxes. There are two ways to manage your taxes.
1. Income – You can manage your income even if you are not a business owner. You as an individual can decide how much you want to make during the year either from your business or your job as an employee. The more money you make, the higher the tax bracket.
2. Deductions – You can manage your deductions by deciding how much house you want. homeownership brings mortgage deduction–which can be limited depending on the size of the loan and income. Additionally, you can decide how much you want to contribute to charities. Depending the asset you donate, you can deduct from 20 -50% of you adjusted gross income.
There are additional ways to manage your taxes through gain loss sales of investments. However capital losses on sales of investments are limited to $3,000 per year. You can even have losses through rental property or partnerships which may be limited depending on if you are active or passive in the rental business or partnership.
Like money and life, taxes can be managed. These methods are just a couple of ways to manage your taxes. There are more. How do you manage your taxes?
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- CIRCULAR 230 DISCLOSURE "We are required by IRS Circular 230 to inform you that the advice contained herein (including all attachments) was not intended or written to be used for the purpose of avoiding any penalties that may be imposed under Federal tax law and cannot be used by you or any other taxpayer for the purpose of avoiding such penalties."
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