Waiting until after the close of the tax year to worry about your taxes can result in missed opportunities that could have reduced your tax liability or provided financial benefits. Mid-year is the perfect time for tax planning. The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them. Here are some events that can trigger tax consequences. Did you (or are you going to):
- Get Married, Divorced, or Become Widowed?
- Change Jobs or Has Your Spouse Started Working?
- Have a Substantial Increase or Decrease in Income?
- Have a Substantial Gain from Selling Stocks or Bonds?
- Buy or Sell a Rental?
- Start, Acquire, or Sell a Business?
- Buy or Sell a Home?
- Retire This Year?
- Reach Age 73 This Year?
- Refinance Your Home or Take Out a Second Home Mortgage This Year?
- Receive a Substantial Inheritance This Year?
- Take Advantage of Tax-Beneficial Retirement Savings?
- Make Any Significant Equipment Purchases for Your Business?
- Purchase a New Business Vehicle and Dispose of the Old One?
- Adequately Document Your Cash and Non-Cash Charitable Contributions?
- Keep Up with Your Self-Employed Estimated Tax Payments?
- Make Any Unplanned Withdrawals from an IRA or Pension Plan?
- Make Energy Saving Improvements to Your Existing Home?
- Add a Solar Electric System to Your Home or Purchase an Electric Vehicle?
- Hire Veterans or Other Individuals in Your Business Who May Qualify for the Work Opportunity Tax Credit?
- Trade in, Mine, Sell, or Receive Cryptocurrency?
- Incur Expenses Adopting a Child?
- Start Receiving Social Security Benefits?
- Exercise an Employee Stock Option?
- Start Using a Part of Your Home for Business This Year?
- Exchange Real Properties Used in Your Trade or Business or Held for Investment?
- Start a Retirement Plan in Your Self-Employment Business?
- Make Gifts of Over $17,000 to Any One Individual This Year?
Of course, these are not the only issues that have tax consequences……..