The tax deadline each April need not be a time of stress and worry.
No matter how sophisticated an investor or business owner you may be, the vast number of opportunities for you to slip up when compiling your income tax return is huge.
It’s no wonder April each year sees an increase in stress and worry.
Your problems can be as simple as failing to declare a certain income or failing to keep adequate records to enable you to verify your deductions should you get flagged for an audit.
What’s The Solution?
The solution depends on what type of income you have received during the course of the financial year.
If you are a property investor, then there are different types of real estate property taxes that may apply to your particular property and set of circumstances.
It makes a difference if you are a citizen or a foreign national who is either a resident or not physically present in the United States.
The amount of time you spend living on your property will also affect your tax status.
If you’ve planned ahead and have your property holdings registered in a company or trust, then your options for tax planning and reducing your tax liabilities increase.
But your record-keeping and bookkeeping need to be accurate and in the right format to ensure that you’re not heading into more problems.
It’s for this reason that appointing a competent and experienced accountant is vital.
How Can I Reduce My Tax Liability?
The first step is to have an accurate bookkeeping system. Deducting direct costs associated with your income is the first step in minimizing your taxable income.
If you have assets that produce your income, then you can depreciate them and claim the depreciation as an expense against your income. Asset registers and depreciation schedules must be drawn up so that an accurate expense can be calculated.
You need to consider the implications of Capital Gains Tax and the decisions you make regarding trade-ins or trade-ups will affect how much you are going to pay over to the IRS.
Being an active rather than passive real estate investor will make a huge difference to your tax affairs. Taking the advice of your tax professional and following their recommendations can not only save you money but also make you money in the long run.
Keeping a record of all home improvements and additions is another avenue that you can follow to reduce your tax liabilities.
Not only will your accountant know how to deal with each scenario, but they will keep up to date on all changes to legislation and supplemental taxes that may affect your property holdings.
These are just a few of the things you need to consider when filing your taxes. There are many more potential issues that you may face and that’s the reason why appointing an experienced tax accountant is vital for your financial well-being.
Introducing Contador America
Moses Nae, CEO of TaxLeaf, Contador Miami, and the founder of Contador America is passionate about helping foreign investors and business owners structure their businesses and investments in a tax-efficient manner.
To avoid unnecessary costs and to reduce your tax liability, it is crucial that you consult with a knowledgeable and experienced tax accountant, especially if you are an overseas investor.
Here’s what one successful business owner has to say about the service and support they receive from being partnered with Contador America:
Cesar Buenavista, Doral, Fl
“I am an Account Manager with Contador America and have been working with clients for more than 6 years. The technology they provide is incredible. I have access to everything from my phone if I need it. They are very professional and provide excellent support for me and my employees.”
To help you learn more about how Contador America can assist you in submitting your tax return as well as structuring your financial affairs efficiently, stop what you’re doing right now and call us now to secure a FREE 30-Minute Consultation with one of our tax experts.