Tax techniques that work for everyone
Our lawyers and strategic planners work day to day maximizing our clients’ wealth with a number of proven techniques. Whether that be protecting assets or planning the sale of a business or even saving them money come tax time, we help wealthy clients keep their hard-earned cash in their pocket.
With all the talks of the new President’s proposed tax cuts on businesses and high earners, we thought it prudent to mention that there exist certain money-saving tax techniques that work for everyone.
Any money that you set aside in an IRA will be deducted from your taxable income. You can even have up to $18,000 of your income ($24,000 if you've hit 50) deferred into your account through a 401k. If you’re a business owner, any contributions you continue to pay into an self employment retirement account will not count toward your taxable income.
Investing is not limited to the upper crust. Working class people that invest in property, stocks, and more get the benefit of that income being taxed at a lower percentage rate than regular income from a normal 9 to 5. In other words, make some solid investments and you'll have less regular income to report. The less income you can report, the thicker your wallet will be.
Mortgage Interest Deduction
Have a mortgage? Claim a mortgage interest deduction. The catch? You have to itemize deductions in order to take advantage of it. Most people don't itemize deductions because there's not much of a point, but in your case, there very well may be.
You may know that some people donate money to charity and then later write the amount off at tax time. It's a smart practice, but there's something even better than cash contributions. Assets. Like stock. You can read about the details at http://www.lowtax.net/articles/Tax-Secrets-of-the-Wealthy-Revealed-574268.html
Take advantage of these tax tips
While it’s very true that more money gives you more breaks in life, these tax techniques can help anyone that’s willing to put in the work. You may not be able to gift as much money or afford every investment, but there’s a piece of the pie waiting for you. Go grab it.