A review of TOP TEN YEAR END TAX PLANNING CHECKLIST
A lot has happened this year in the real estate market and the general economy. It
impacts the portfolio of many Real Estate Investors – The value of our assets, how we want to invest in coming years, and even our retirement planning. It also impacts 2016 tax issues that will be confronting us in the upcoming tax filing season.
Tax preparation for the April 15th tax deadline is merely tax
compliance as opposed to voluntary tax reduction planning. December 31st is the true tax savings deadline. Some of the best tax-reduction moves really need to be done by mid-November or early December. They often take some advance planning. Getting a head start now could make you a lot happier in April, giving you a bigger refund or a smaller check to write to Uncle Sam.
You either pay the IRS, pay a tax preparer, or pay a qualified CPA to come up with some tax reduction strategies.
- If you own a business, do you have an EIN number, operating agreement, and a separate
bank account? IRS audits on small businesses especially real estate businesses have increased.
- If you bought or sold property in 2016, have you considered the impact of capital gains, adding rehab expenses to the basis of the property, and whether the holding costs (mortgage interest, taxes, and insurance) are deductible in 2016?
Ebere Okoye is the founder of The Wealth Building CPA, a team of trained professionals experienced at providing detailed economic solutions and planning to real estate investors and business owners.
Duncan Wierman
www.BostonRealEstateInvestorsAssociation.com
