All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially assist them. Mid-year is the perfect time for tax planning. The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them. Here are some events that can trigger tax consequences. Did you (or are you going to):
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- Get married, divorced, or become widowed?
- Change jobs or has your spouse started working?
- Have a substantial increase or decrease in income?
- Have a substantial gain from the sale of stocks or bonds?
- Buy or sell a rental?
- Start, acquire, or sell a business?
- Buy or sell a home?
- Retire this year?
- Reach age 72 this year?
- Refinance your home or take out a second home mortgage this year?
- Receive a substantial inheritance this year?
- Take advantage of tax-beneficial retirement savings?
- Make any significant equipment purchases for your business?
- Purchase a new business vehicle and dispose of the old one?
- Adequately document your cash and non-cash charitable contributions?
- Keep up with your self-employed estimated tax payments?
- Make any unplanned withdrawals from an IRA or pension plan?
- Add a solar electric system to your home or purchase an electric vehicle?
- Hire veterans’ or other individuals in your business that may qualify for the work opportunity tax credit?
- Trade in cryptocurrency?
- Defer employer payroll taxes in 2020?
- Incur expenses adopting a child?
- Start receiving Social Security benefits?
- Exercise an employee stock option?
- Start using a part of your home for business this year?
- Exchange real properties used in your trade or business or held for investment?
- Start a retirement plan in your self-employment business?
- Make gifts of over $15,000 to any one individual this year?
- Receive advance child tax credit payments?
Of course, these are not the only issues that have tax consequences.
If you anticipate or have already encountered any of the above events or conditions, it may be appropriate to consult with this office—preferably before the event—and definitely before the end of the year.
If you have questions, contact the Tax Experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
