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Tax help top companies in Houston, Texas? If you have business income and expenses to report on Schedule C, you will need to share your books and records (for example, QuickBooks or any other accounting system you use, receipts for expenses, and relevant bank and credit card statements).16? The better organized your records are, the less time it will take a preparer to process your taxes, which translates into lower fees for their service.

You can take advantage of the tax-reducing benefits of retirement accounts by contributing the maximum amount. For 2020, the maximum 401(k) contribution is $19,500 and the maximum 403(b) contribution is the same, while the maximum contribution for SIMPLE IRAs is $13,500. Keep in mind that if you’re over the age of 50, you may take advantage of catch-up contributions of up to $6,000, as well. Roth IRAs are tax-free retirement accounts that can help you to reduce your tax burden and save money on your taxes, even if you’re in one of the top brackets. Unlike a traditional IRA, Roth IRA contributions are made from post-tax income. That means you’ll pay taxes before you contribute, but not when you withdraw.

Consult a tax professional before making any decisions that can affect your business tax return or spending money for the sole purpose of saving on taxes. Make sure you select someone who can help you all year, not just at tax time. Consider hiring an expert who can represent you before the IRS in case you’re ever audited. An enrolled agent might be your best bet. These professionals are designated by the IRS because they’ve passed a strenuous, three-part test, or because they actually worked for the IRS at some point. Note: These tips are not intended to be tax advice, but only to give you some tax-saving ideas to discuss with your tax professional. Every business is unique, and tax laws change frequently. See extra details on https://greentree.tax/.

Sec. 1031 Exchange Rules. The only way you can avoid current tax when you sell investment property is through a “1031 exchange”, where you involve a third party, called an accommodator, to hold the money and buy a new property for you. But there are some rules you have to comply with: You can’t touch the money. You have to identify the new like-kind real property within 45 days after property being given up is transferred and close within 180 days. The new property has to cost at least as much as the old one. You can’t be relieved of debt (so you can’t use the proceeds from the sale to buy a new property for all cash if the old property had debt tied to it). You will pay hefty fees to the accommodator to handle all this for you.