If you want to get a better hold on your finances, consider using the year’s end to review your spending and saving history, and think ahead for next year, and tax time.
According to Senior CFP Board Ambassador Jill Schlesinger, CFP®, for millions of Americans, the new code should make filing easier since nearly 90 percent of taxpayers are likely to claim the standard deduction this year.
We at DFW Properties would like to present her tips below to make the most of your money with the new protocols in place:
Itemize Deductions in Bunches
Many itemized deductions of the past have been scrapped, including unreimbursed employee expenses, tax preparation fees, job search expenses and more. The change in itemized deductions makes the concept of “bundling” deductions much more important – if you can bunch future itemized items into one year, you may be able to itemize again.
To Claim or Not to Claim the Standard Deduction – That is the Question
For those claiming the standard deduction or have higher income in 2018 than they will next year, the best way to reduce your tax liability is to maximize your retirement plan contributions. If your income has stayed the same or dropped this year, you may have a unique opportunity to execute a full or partial Roth IRA conversion, where you pay taxes at today’s rates, rather than wait until later in life when you may be in a higher bracket.
Move Up Planned Charitable Contributions
The tax law is expected to reduce the marginal tax benefit of giving to charity by more than one-quarter in 2018, but if you give one lump sum representing your gifts for the next few years, you may recapture the tax benefit. One easy way to accomplish this is by establishing a donor advised fund (DAF), which allows you to make multiple years’ worth of donations up front.
DFW Property Management.com manages properties in the entire Dallas / Fort Worth metroplex. We offer three property management packages: Silver, Gold, and Platinum. Please click on the links to read more about each one, or check out our comparison page. Give us a call at 682-200-6700 if you have any questions.