Are you contented with the taxes you pay? Are you very confident that you are actually taking good advantage of every tax break you can get? But most of all, is your tax preparer providing you positive advice to save more on your taxes?
The wicked news is that most likely you do pay excessive tax and you are not taking benefit of each and every tax break. And many preparers perform poorly on saving their customers’ money.
The great news is that you need not to feel that way. All you need is a better plan. Listed below are some of the greatest and common tax mistakes real estate agents make together with a few tips on to resolve the problem.
First is failing to plan carefully. It doesn’t really matter how great your tax preparer is with your compiled receipts on the date of payment. If you do not know that you can make some of your medical fees as a business expense, it is very late to do things when your taxes are ready the next year. Tax coaching is all about offering you a plan for lessening your taxes. What do you need to do? When should you begin? How should you do it?
Tax coaching proposes two more commanding benefits. First, it is the main key to your monetary defenses. As a good real estate agent, you need two good ways to save more cash in your pocket. Monetary offense is boosting your income. Financial defense is lessening your expenses. For the majority of agents, taxes are their biggest expenditure. So it makes real sense to concentrate your financial defense where you spend the most.
Next, tax coaching guarantees real outcomes.You can spend all your time, effort and cash doing what you do best to earn money.
Next is misunderstanding audit odds. Some say it is good to be aggressive. That is because the whole audit odds are quite less that most legal deductions are not expected to wave red flags. Audit rates are as little as they have ever been years ago. The overall rate was only one in every nearly a hundred returns. Around fifty perfect of those audits besieged the earned income tax credit for less-income working people. The IRS chiefly targets small business, particularly solitary proprietorships, and many businesses such as pizza stores and coin-operated Laundromats with great chances to hide pay and browse profits.
Lastly, you are declaring too high self-employment tax. You pay as much in self-employment tax as you do in income tax. If it is true in your case, you may consider setting up an S group or limited liability company to lessen that what you have to pay for.
Other mistakes that you may possibly commit include the following:
- Wrong retirement plan
- Missing family employment, medical expenditures, home office, car expenses, meals, and entertainment
Take note of all these mistakes and try not to do it yourself!
Joyce Del Rosario is a finance and home improvement blogger. She currently collaborates with kennarealestate.com, a finance and property management website in Denver. Visit http://www.kennarealestate.com/listings.php to know more about Home listing in Denver.
© 2013, Joyce Rosario. All rights reserved.