Top status tax help firms in Houston, TX? Even if you hire someone else to prepare your tax return, you’ll need to do some of the advance work yourself—and the earlier you start, the better. Round up your receipts and check that you’ve received all the forms you need from employers and financial institutions. Last year’s tax return can be a good guide for making sure you aren’t missing any important information. For 2020, the deadline for filing taxes and making deductible contributions to an IRA or health savings account has been moved to July 15.
That might not seem like an advantage, but it is. Any income earned on the money in your Roth IRA is also tax free. You can even roll over the money in a traditional IRA or a 401(k) into a Roth IRA and reap the same benefits. Some of the best times to do a Roth IRA conversion are when you’ve had a year with less income than the previous year, or when you’ve retired and are temporarily in a lower tax bracket. This strategy makes sense if you can wait until the age of 70 ½ to make mandatory withdrawals. We like to suggestion this option to our clients because it’s easy to overlook, especially when people are focused on tax deductions as a way of reducing their taxable income.
Tax credits are the federal government’s way of encouraging businesses and individuals to do things—or not do things—that affect the greater good. For example, you can take tax credits for hiring employees, going green, providing access to disabled employees and the public, and providing health coverage for employees. Most are part of the General Business Credit, which is quite extensive so it’s quite possible that you qualify under some of its terms. Check with your accountant. Discover more information on https://greentree.tax/.
Sec. 1031 Exchange Rules. The only way you can avoid current tax when you sell investment property is through a “1031 exchange”, where you involve a third party, called an accommodator, to hold the money and buy a new property for you. But there are some rules you have to comply with: You can’t touch the money. You have to identify the new like-kind real property within 45 days after property being given up is transferred and close within 180 days. The new property has to cost at least as much as the old one. You can’t be relieved of debt (so you can’t use the proceeds from the sale to buy a new property for all cash if the old property had debt tied to it). You will pay hefty fees to the accommodator to handle all this for you.