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Personal Tax Tips For 2018 Filings
Mortgage Interest Points
Retirement Plan and Other Investment Strategies
If you believe a Roth IRA is better than a traditional IRA, and you want to remain in the market for the long term, consider converting traditional-IRA money invested in beaten-down stocks ( or mutual funds) into a Roth IRA if eligible to do so. Keep in mind, however, that such a conversion will increase your adjusted gross income.
Realize losses on stock while substantially preserving your investment position. Capital gain and loss rates remain intact in 2018.
Business Tax Tips
You can claim deductions for the business-related use of an auto using either the standard mileage rate method or the actual expense method. You should use the method that will yield the largest deduction.
Home Office Expenses
To qualify for a deduction related to an office in the home, you must have an area of your home used exclusively as your principal place of business. This includes a place of business where you meet or deal with patients, clients, or customers.
Unlike other plans, a profit-sharing plan is flexible. It can be designed so that the employer is not required to make an annual contribution.
Overall tax rates have decreased in 2018 with 7 updated individual tax rates that apply starting at the lowest rate of 10% up to a maximum individual tax rate of 37%. The new standard deduction for those married filing jointly is $24, 000. Corporate tax rates have been reduced to a flat 21% and a pass through deduction is allowed for Partnerships, S Corps, and Sole Proprietors. There is an increased 179 business depreciation expense deduction of up to 1M. As well as, the luxury car maximum allowable depreciation has increased to 10K in the first year. Net Operating Loss carry-back has been suspended in 2018 , however, the NOL can be carried forward indefinitely.
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