Although 2017 is rapidly coming to a close, there is still time to utilize strategies that reduce your tax liability for this year. Depending on your individual situation, the following are examples of a few simple strategies to act on today:
- Take advantage of your marginal tax brackets. If you expect a higher income next year, it may be advantageous to postpone deductions this year or accelerate income into this year.
- Harvest losses on stocks. If you have stocks with losses, offset stock gains you realized during the year.
- Make deductions. Business owners can deduct eligible new and used equipment in the year of purchase within the IRS purchase and expense limitations.
- Take advantage of Minnesota tax changes. You may be able to take advantage of credits and deductions on your Minnesota tax return as a result of the Minnesota Omnibus tax bill signed earlier this year.
Our country is currently in the midst of a potential overhaul of our tax system. Regardless of all the potential changes, do not wait until new laws are put in place to establish a tax plan. Tax planning can minimize your overall tax liability, resulting in an improved financial position.
The professionals at Hawkins Ash CPAs help privately held businesses and individuals achieve their maximum bottom line, save taxes and preserve wealth. We are committed to partnering with you to navigate the ever-changing business and legislative environment. Please contact a member of our team to schedule a free consultation.
