There is nothing smarter and more beneficial than knowing how to budget and successfully plan around your taxes.
That is why we have compiled some of the best tax need-to-know tips to make sure you are getting the most return on your taxes and investments.
Invest In Non-Taxable Income:
Did you know there are several options you have when it comes to non-taxable investments? If you have yet to invest in a Roth IRA or public/municipal bonds, you are missing out on a great opportunity to multiply your non-taxable income.
Roth IRA accounts allow you to invest money into an account that if not touched for five years, will allow your money to grow without charges of capital gains or income tax penalties.
When investing into public/municipal bonds, you are given access to a large amount of subsidy from the federal government, with yields free from federal income tax on these particular bonds.
If you are made the beneficiary of a life insurance policy, you are therefore guaranteed to receive the amount in full, and tax-free.
A policyholder’s life insurance policy will generate dividends that are credited to cash value policy. The insurance dividends you receive on these are non-taxable as well.
Real Estate Means Real Tax Savings
Real estate has long been a great tax saving method to increasing the return of funds in your pocket while at the same time offering a variety of ways to lessen your tax burden.
By investing in things such as a home, you can lower your taxes significantly. Tax deductions and exemptions for real estate owners enable them to turn losses into profits from all the money they saved from deductions. All mortgage payment interest is deductible as well as tax breaks for cost occurred through things such as repairs and property management.
There are a variety of ways to be smart about your taxes, but the best advice is to have an experienced legal team to help guide you along the way.
The attorneys at Heritage Law, LLP specialize in taxation, offering a wide array of services form tax planning and tax controversy, to estate and gift tax returns.
If you have a question regarding the best way to maximize the ROI with your taxes, contact the Heritage Law, LLP team.