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Strategies To Help Reduce Next Years Tax Bill

5/4/2016

Strategies To Help Reduce Next Years Tax Bill

 
 
Now that the April 18 income tax filing deadline has passed, it may be tempting to set aside any thought of taxes until the year end is near. But don't make that mistake, sit down with your tax consultant now to evaluate your financial life, especially while all your tax data is freshest in your mind. Don't miss opportunities for maximum tax savings.
 
A tremendous number of variables affect your overall tax liability for the year. Starting to look at these variables early in the year can give you more opportunities to reduce your 2016 tax bill.
 
For example, the timing of income and deductible expenses can affect both the rate you pay and when you pay. By regularly reviewing your year-to-date income, expenses and potential tax, you may be able to time income and expenses in a way that reduces, or at least defers, your tax liability.
 
To achieve your business success, tax planning shouldn't be just a year-end activity.
In recent years, planning early had been a challenge because there were a lot of expired tax breaks where it was uncertain whether they would be extended for the year. But the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks through 2016, or, in some cases, later. It also made many breaks permanent.
 
For example, the PATH Act made permanent the deduction for state and local sales taxes in lieu of state and local income taxes and tax-free IRA distributions to charities for account holders age 70½ or older. So you don't have to wait and see whether these breaks will be available for the year like you did in 2014 and 2015.
 
To get started on your 2016 tax planning, contact us at 239.936.1120. Our tax advisors can discuss what strategies you should be implementing now and throughout the year to minimize your tax liability.
 
For tips and valuable information, peruse our website ZinkCPA.com and follow us on Facebook at facebook.com/zinkcpa. We look forward to hearing from you.
 
Gordon Zink CPA, PA is a proud member of the Florida Institute of Certified Public Accounts