July 2016 Tax Tips

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  • Do you own a boat or recreation vehicle? Are you thinking about buying one? As long as the vehicle has sleeping space, a bathroom, and cooking facilities, you may be able to claim it as a second home and deduct the interest payments on your loan.
  • Summertime is a good time to take care of the tax and financial tasks you’ve been putting off — planning for college, retirement, and your estate, for example. For assistance, give us a call.
  • If you are in a position to give, making annual gifts can be an excellent strategy for reducing both your estate and income tax liability. Doing your gift-giving well before year-end is especially smart if you are giving income-producing property. You will then remove more income from your 2016 tax return.
  • If you have vacation/rental property, you can control your tax deductions by changing the number of days you use your vacation home. In planning your vacations, be sure to find out how many days of personal use will lead to the best tax deductions on your property.
  • If you lost the benefit of a tax credit or other tax break on your 2015 tax return, start now to review how your 2016 income could affect tax credits this year. If your adjusted gross income (AGI) is too high to use certain tax breaks, consider switching investments to reduce your AGI. Consider replacing accounts earning taxable interest with tax-free investments. Invest in tax-efficient mutual funds instead of funds that usually distribute large capital gains.

The information on this site is general in nature and should not be acted upon in your particular situation without further details and/or professional advice. For assistance, contact our office.

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