End Of Year Real Estate Tax Tips Part 2
Gerald Lucas here, with part 2 of my end of year real estate tax tips. Let’s first recap the 1st three end of year real estate tax tips I’ve already provided to you in my last episode: 1) Consider deferring income 2) Take some last minute tax deductions 3) Account for refinancings
Tax Tip #4. Prepay quarterly estimated state tax payments.
Consider paying your fourth-quarter estimated state income taxes and any outstanding balance by December 31. Your payments will be tax deductible for this tax year if you’re not subject to the alternative minimum tax (AMT).
Tax Tip #5. Contribute the maximum to retirement accounts
There may be no better investment than tax-deferred retirement accounts because they compound over time free of taxes.
The sooner you get your money into the retirement account, the sooner it has the potential to start to grow tax-deferred. Making deductible contributions also reduces your taxable income for the year.
Tax Tip #6. Itemize all your expenses and keep accurate records
It’s important to itemize all your expenses and make sure your expenses are not capital improvements, because you can only write off deductible non-capital expenditures. Also, don’t forget those detailed records because the IRS will certainly ask for them if you are ever audited.
For more real estate tips and information, visit my blog at geraldlucas.com.