Tax-Free Wealth Author, CPA and CEO Tom Wheelwright announces 12 Year-End Tax Planning Questions to help primarily business owners, small businesses, and investors maximize savings legally during the first year that the new tax plan will impact returns. Wheelwright has just released a Tax-Free Wealth 2nd Edition (August 2018) with updates based on the Tax Cuts and Jobs Act of 2017. These questions are a quick reference for how taxpayers can potentially save millions over a lifetime with this major tax reform.

Wheelwright emphasizes, “It’s important to talk to your Tax Advisor now because it may take a few months to implement changes to your business based on the new tax bill. There is a lot of confusion over the new laws, and a review of your tax strategy can result in significant long-term savings.”

With less than four months left in 2018, individuals and corporations should review these year-end planning questions. These questions include 5 categories with ways to Maximize New Tax Changes for Business, Maximize Automobile Deductions, Maximize Real Estate Investment Deductions, Maximize Retail Deductions with Inventory Management Tools, and Make Critical Personal Decisions.

 

12 Year-End Tax-Planning Questions by Tax-Free Wealth Author Tom Wheelwright

MAXIMIZE NEW TAX CHANGES FOR BUSINESS

 

1. Does your business income qualify for the 20% pass-through deduction? If not, should you switch to a C corporation to take advantage of the 21% corporate tax rate?

2. If your business does not qualify for the 20% pass-through deduction because it’s one of the Specified Services Trades or Businesses, consider taking steps to reduce your income below the thresholds ($157,500 for a single taxpayer, $315,000 for a married taxpayer) to avoid this limitation.

3. Are you starting a new company? If so, are you planning to sell the company in 5-10 years? If so, consider forming as a C corporation to take advantage of the Section 1202 tax-free gain rules.

4. If you live in a high-tax state, consider your alternatives to paying tax as a business instead of personally to receive the deduction for state taxes or make state-tax-credit-effective contributions in your business to avoid the limitation on individual state-tax-credit contribution deductions.

 

MAXIMIZE AUTOMOBILE DEDUCTIONS (for Business Owners)

 

5. Can you establish a home office to increase your automobile deductions?

6. Do you need a new car? If so, do you want to consider an SUV or truck over 6,000 pounds to take advantage of the 100% write-off of the business use portion?

 

MAXIMIZE REAL ESTATE INVESTMENT DEDUCTIONS

 

7. Do you need to invest in real estate to take advantage of the bonus depreciation to offset other taxable income?

8. If you are a commercial real estate investor, consider if you need to replace your roof or any HVAC units as these are now deductible.

9. As a real estate investor, are you maximizing the new 20% pass-through deduction?

 

MAXIMIZE RETAIL DEDUCTIONS WITH INVENTORY MANAGEMENT TOOLS

 

10. If you own a retail establishment, consider whether to change your accounting method to maximize new inventory deductions.

 

MAKE CRITICAL PERSONAL DECISIONS

 

11. Are you contemplating a divorce? If so, the divorce must be finalized by 12/31/18 if you still want to deduct your alimony going forward.

12. Can you legally shift some of your 2018 income to your children to reduce your taxes?

 

NEW BOOK 

Tax-Free Wealth 2nd Edition (with New Tax Law Updates) is now available on Amazon:
https://wealthability.com/tfwamazon

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