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11 Tips to Reduce Your 2019 Tax Liability

by Ken Hrica, CPA Nov 21, 2019 | Share

2020 is quickly approaching and now is the time to do some last-minute tax planning. Here are some year-end tax tips that could potentially reduce your tax liability for 2019.

  1. Defer your income, if possible.
  2. Take some last-minute tax deductions such as charitable contributions.
  3. Accelerate expenses (if you are on a cash basis), such as paying a bill do early next year by the end of December.
  4. Sell loser investments to offset gains, such as stocks, bonds and mutual funds.
  5. Be sure you have contributed the maximum to retirement accounts.
  6. Check IRA distributions. You must start making regular minimum distributions from your traditional IRA by the April 1st following the year in which you reach age 70 ½.
  7. Make the most of your home – make your January mortgage payment by Dec. 31 and deduct the mortgage interest on your coming tax return. The same is true for early property tax payments.
  8. Pay college costs early.
  9. Adjust your withholding – if you owed a large amount or received a large refund in the prior year.
  10. If you are making Estimated Tax Payments, be sure they are made on time.
  11. Reinvest back into your business with equipment, vehicle or software purchases

If you would like to discuss any of these options further, please contact us!

 

About the Author

Ken Hrica, CPA

Ken Hrica joined Century Accounting & Financial Services full time in 1991, after working for several years in public accounting with Ernst & Young. With almost 35 years at Century, Ken has recently taken over the firm and its management. The value he brings to his clients lies in his vast experience, working with hundreds of individuals, businesses and non-profit organizations. Ken’s hands on approach includes getting new clients’ records up to date, helping new clients properly set up their books, assisting in making decisions on business structures, and payroll advice, such as should you issue a 1099 vs. a W-2. He advises all clients, new and long term, in many other financial areas of their business including tax planning and tax preparation. He also helps clients deal with the IRS, from back taxes to installment agreements.

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