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Be a Tax Pro! Part II: 5 MORE ways to cut your 2011 personal income taxes

Here are 5 MORE ways to cut your 2011 personal income taxes like a tax pro:

1. Homeowners – accelerate your tax deductible expenses.  Pay your January 2012 mortgage payment and property taxes before December 31, 2011.  You can write off the interest and taxes in 2011.   


2.Take advantage of the 0% tax rate on long-term capital gains and dividends.  If you can keep yourself below the 25% income tax bracket, the profits on assets owned for more than a year and dividends are tax free.

3. Use tax credits to mitigate state income tax liabilities.  There are various tax credits that can be used to avoid some or all state income tax.  Some can be generated by a business, some can be purchased, and some are based on taking an action that is supported by the government. 

4.Pay your state income taxes early.  Estimate your state income tax liability to the best of your ability and pay it on or before December 31, 2011.  You can write off the amount against your federal income tax liability in 2011.

5.Use your annual gifting exclusion.  Currently, you can give up to $13,000 per year to a single donee, without incurring any gift tax or eating into your lifetime exemption.  If you are a married couple, you can elect gift-splitting, so the $13,000 amount is effectively doubled to $26,000 per year to a single donee.  If you will have a taxable estate and/or a significant number of potential heirs, this is a must-do strategy.   

Read Part 1 Here

oXYGen Financial Tax & Business Services, LLC – Executive Vice President Dan Lucas is the #1 CPA in giving tax and business advice to the X and Y Generation.

Written by :
Dan Lucas, CPA®

Executive Vice President, oXYGen Financial Tax & Business Services, LLC

Request a FREE consultation: www.oxygenfinancial.net

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Hey!

My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA's BrokerCheck website.

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