Will your itemized deductions for 2013 be right around the standard reduction amount? If so, you can bundle expenses for every other year and claim the standard deduction in the in between years. Over two years, this will significantly cut how much income you’re taxed on.
For example, the standard deduction for those filing jointly is $12,200. And let’s say you’re only deductions for 2013 are $4k in property taxes and $8k in home mortgage interest. If you go ahead and pay your property tax of $4k in 2013 for 2014, you can claim $16,000 in deductions for your 2013 return. The following year, you can claim the standard deduction of $12,200 but only have about $8k in mortgage interest.
You can do the same if you are filing individually ($6,100) or head of household ($8,950).
If this seems tricky, we’re here to help you with advice. Everyone has a unique situation and it’s always best to get advice from a professional that understands where you are financially.
Do you have the support you need to manage your small business bookkeeping?
Contact us to schedule an appointment to speak with a local small business advisor.