Brian Livesay The San Diego Retirement Guardian | Year End Tax Planning

Mon 17th, 2015

Brian Livesay The San Diego Retirement Guardian says “Knowing were the tax payer stands as the year comes to an end ensures the least amount of required taxes are paid by the tax payer. Yearend planning is essential. The tax code is complicated and advice should come from a qualified tax advisor.”

Tax planning is essential to get the most benefit from the tax code. Knowing what to look for as the year draws to an end will benefit the tax payer a great deal when it comes time to file a tax return. Using the tax code to avoid paying too much in taxes is legal and should be done by every tax payer. There are a number of areas were a tax payer has some control over the timing of payments or income that will benefit the tax payer when the yearend return is filed.

First knowing how much income for the year and allowable deductions the tax payer has gives the tax payer an idea of which tax bracket they will fall into and how close they are to the next tax bracket. Avoiding going into the next tax bracket by not taking any controllably timed income at year end will limit the tax payer’s tax burden for the year.

Deductions can also help control which tax bracket the tax payer will fall into for the tax year. If the tax payer’s Itemized Deductions are greater than the Stand Deduction the tax payer has some flexibility in the timing of payments that will reduce their taxable income for the year. Prepaying property taxes allows the tax payer to take a bigger deduction in the year the payments were made thus reducing taxable income by the amount of prepayment if the tax payer was already able to Itemize for the year. Making more charitable donations also by year end is another way to reduce taxable income. If the tax payer has medical expenses that exceed 10% of their Adjusted Gross Income the tax payer may what to schedule needed medical or dental procedures before year end to ensure the expenses can be deducted on the current year’s tax return.

Another area were timing can be used to benefit the tax payer is investment income. If a tax payer has recognized losses in a given year the taxpayer may want to sell any stocks that have appreciated in value since the lose will offset the gain. The tax payers Adjusted Gross Income will not be affected by these gains allowing the tax payer to avoid paying any tax on the recognized gains.

For more information visit Brian Ray Livesay’s Who Is Page here in the Journal

Brian Ray Livesay The Retirement Guardian
You may contact him at his office
Livesay Capital Solutions Inc.
1761 Hotel Circle S. Ste 360
San Diego, CA 92108
Call at 866-726-0725 / 619-281-8377
Or visit his Web Site www.retireestaxgroup.com

by Chet Bruce in Financial Views, Tax Planning with 121 comments

Reuven I Rubinson San Diego CFO-CPA Financial Advisor | Taxation and Accounting Controversies Effect Business of All Sizes

Reuven I Rubinson San Diego CFO-CPA Financial Advisor says “In taxation, the ongoing debate is over what items should have favorable treatment and whether or not we should go to a flat tax. In accounting, the ongoing debate is over whether we should have one set of rules for all companies or whether small businesses. Continue reading…

August 24, 2014
Irene West San Diego Wealth Building Advocate | Why Buying Gold Now Is Not a Peak Purchase But Has Room for Profit

Irene West San Diego Wealth Building Advocate says “Gold has been fluttering around the $1,100 and $1,200 for a couple of years now without much movement.” It has repeatedly shown signs of weakening as an investment with notable dips in the last three years. For example, at the beginning of August gold’s spot price broke. Continue reading…

September 16, 2015
Jim Porter San Diego Insurance Specialist Points Out The Questions You Should Ask and The Decisions You Should Make

Jim Porter San Diego Insurance Specialist says “Cost comes up a lot. Ask yourself if cost really is the most important part of buying Insurance.” Several other questions carry a lot more weight than the cost. Ask about the Insurance Company that is being recommended to you. Include that in the question about the local. Continue reading…

May 9, 2014
Brian Livesay San Diego Retirement Guardian | Actual vs. Average Returns Impact On Your Investments

Brian Livesay San Diego Retirement Guardian said “An investor should monitor investments periodically to see what their actual returns are vs. the average return the investment products prospectus had illustrated.” Actual returns are the real returns an investor receives from an investment. The investor’s account value actually increases or decreases by an amount giving the. Continue reading…

June 11, 2015
Brian Davis San Diego Self-Directed 401 (K) Specialist | Advantages of Self Directed 401(K) Over Other Forms of Retirement Plans

Brian Davis San Diego Self-Directed 401 (k) Specialist says “The one-participant 401 (k) plan or Solo 401 (k) plan as it’s often called, is overlooked by so many self-employed individuals, and has so many benefits that I hope more and more people take the time to learn about it” The self directed 401(k) plan (also referred to as. Continue reading…

February 2, 2015
Brian Livesay San Diego Financial and Tax Planner | Reduce Risk and Build a Life Plan

Brian Livesay San Diego Financial and Tax Planner says “I like to think of a holistic approach, combining many important areas of finance into one life-plan. Not just financial planning, but a system more aptly described as Life-Planning.” When you combine three components, tax planning, retirement planning and risk-reduction you get what can best be. Continue reading…

June 22, 2014