Want to Pay Fewer Taxes?
At Ciuni & Panichi, Inc. our tax professionals are always looking for ways to help you reduce your tax burden. Here is another idea you can implement today.
Expenses that may qualify as miscellaneous itemized deductions are deductible for regular tax purposes only if they exceed (in aggregate) two percent of your adjusted gross income (AGI). Paying these expenses ahead of time may allow you to exceed this percentage and deduct more of these costs than you thought possible.
Now is a good time to add up your potential deductions to date. If they’re getting close to, or they already exceed, the two percent floor, consider incurring and paying additional expenses by December 31, such as:
• Deductible investment expenses, including advisory fees, custodial
fees, and publications
• Professional fees, such as tax planning and preparation, accounting, and certain legal fees
• Unreimbursed employee business expenses, including travel, meals, entertainment, and vehicle costs
But, keep in mind that these expenses aren’t deductible for alternative minimum tax (AMT) purposes. So, don’t bunch them if you might be subject to the AMT. Also, if your AGI will exceed certain levels ($254,200 for single and $305,050 for married filing jointly), be aware that your itemized deductions will be reduced.
Want help planning? Ciuni & Panichi, Inc. can get you more information on miscellaneous itemized deductions, the AMT, or the itemized deduction limit. Contact Jim Komos at 216.831.7171 or jkomos@cp-advisors.com.
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