Remember those 5 strategies we promised to share to help you keep more hard-earned cash? Buckle up because we’re diving into the last three right now!
Stay Single to Increase Mortgage Deductions:
- Single life, big savings: Did you know two single homeowners can deduct more mortgage interest than a married couple?
- Double the deduction: If you bought your home before December 15, 2017, you and your unmarried partner can each deduct up to $1 million! That’s $2 million of tax savings combined!
- Planning ahead: Bought your home after December 15, 2017? No worries! You still get a generous $1.5 million deduction ceiling.
Get Married on or before December 31:
- Time is money: Getting married before December 31 unlocks a potential windfall for the 2023 tax year!
- Run the numbers: Before saying “yes,” talk to your partner and run your tax returns. You might be surprised at the savings!
- Make it official: Consider a quick trip to the courthouse if the numbers sing. A happy marriage AND lower taxes? Sign us up!
Make Use of the 0 Percent Tax Bracket:
- Remember the kiddie tax? It applies to students up to 24, so gifting them isn’t the best strategy anymore.
- Gift with grace: Do you help your parents or loved ones financially? If they’re in the 0% capital gains tax bracket (less than $44,625 for single, $89,250 for couples), this is your moment!
- Stock it up: Gift appreciated stock instead of cash. They’ll sell it tax-free, and you’ll avoid capital gains tax in your higher bracket. Win-win!
- Know the rules: Remember, gifts count towards your lifetime exemption. But don’t worry; married couples have double the exclusion, and you can always file a gift-tax return.
Why go it alone when you have an expert tax professional who can dive deep into your situation, uncover hidden deductions and credits, and avoid costly mistakes?
One misstep could mean a hefty audit or penalty!