Taxes are one of the most frustrating aspects of someone’s financial life. And no one wants to pay more taxes that they need to pay. Now financial expert, Ted Bauman offers some valuable tax tips that can save time and money as Apri 15 rolls around.
Mr. Bauman lays out some recent tax changes that can greatly benefit taxpayers. One of these changes includes the increase of the standard tax deduction. This will greatly help people with lower incomes increase the amount of money they can deduct. This will also greatly reduce the number of people who will choose to itemize their deductions.
Changes are also in store for business owners. One of the newest tax changes includes an increase in the amount of deduction allowed for S corporation and LLC profits. Those who file as an S corporation or an LLC will be able to deduct 20% of their profits. Additionally, business owners will be able to deduct 17% of 2017 net earnings.
Here are some specific tips Ted Bauman offered in a recent interview. First Mr. Bauman suggested prepaying 2018 property tax and mortgage interest by the end of 2017. Also, Mr. Bauman suggested prepaying for medical expenses as well as philanthropic donations by the end of 2017.
For independent contractors, Mr. Bauman suggested that these business owners ask their clients to pay them before the end of 2017. Also, employees should ask for their year-end bonuses before the end of 2017. Finally, Mr. Bauman suggested that those seeking to complete 1031 real estate transactions do so before the end of 2017.
For 2018, Ted Bauman suggested that people look into establishing a Limited Liability Corporation or LLC. By operating as an LLC, companies can find themselves able to pay significantly lower taxes due to the new IRS rules. Some people can even realize this tax advantage if they stop working as an employee and instead become an independent contractor as an LLC.
Ted Bauman is a financial expert for Banyan Hill Publishing. He is the author of three financial newsletters including Alpha Stock Alert, Plan B Club and The Bauman Letter. Mr. Bauman specializes in low-risk investment strategies as well as asset protection.