Everyone needs an extra tax deduction or two. Before the year ends, consider these options to help increase your tax deductions:
Property Taxes - Most counties allow you to pay your property tax in two payments, one payment in the current tax year and one payment the following year. Since property tax is deductible, make both payments before year end
Charity - Whether it's cash or goods, donate to non-profit charities before year end. Keep in mind that you will need to get a letter or receipt from each place you donate to that includes the amount and date. Charitable tax deductions vary from year to year so ask your accountant about items you can use as a deduction. For example, you may give a weekly cash gift to your house of worship but you must be able to prove it.
Mortgages and Lines of Credit - If you have a mortgage or line of credit, make an extra payment before year end. The interest is tax deductible and will reflect and increase on your 1098 mortgage or line of credit statement.
Health Care - The Internal Revenue Service allows you to take a deduction for any health care expenses that exceed 7.5% of your adjusted gross income. Keep track of your medical expenses and if you need a little more to exceed that 7.5%, make an extra health insurance premium payment or obtain health care services you've been putting off. Ask your accountant to help you figure out if your health care expenses exceed 7.5% or if you need more to qualify for this deduction.
Business Expenses - If you own a business, buying equipment and even office supplies before year end will give you extra expense deductions. If you're thinking of purchasing a company vehicle, do it before year end.
