4 awesome summertime
SBy Cindy Nichols, CPA
tax savings tips
Summer is usually the time for relaxing, but it can also be
a time for tax savings, especially if you’re still reeling from an
unexpectedly large tax bill in April. Here are four timely tips:
1. Rent your home.
If you rent out your
main home or a vacation
home part of the time,
you may be entitled to
deductions like other
landlords. This includes
the rental-related portion
of mortgage interest,
property taxes, repairs,
utilities, insurance, etc. Keep in mind, if your personal use
exceeds certain limits, you can’t deduct a loss. And if you rent
for less than 14 days, the rental income is tax free!
2. Send young kids to camp. Who’s watching the kids
while school’s out for summer? Depending on your situation,
you may be able to
claim a Child and
Dependent Care
Tax Credit for the
cost of sending children
under age 13 to
summer day camp.
However, the cost
of overnight camp
doesn’t qualify for
the credit.
3. Hire your child. If you have an older child looking for
employment this summer, hire them to work for your business.
Reasonable wages are deductible by the business and
your child will likely owe little tax, if any, on the earnings.
4. Take a business trip. Spend some time seeing a different
city this summer while you’re on a business trip. When
you travel for business, you can generally deduct expenses —
including airfare, lodging and 50 percent of the cost of meals
— attributable to the business portion of the trip. But you must
spend more time on business matters while you’re away than
you do on sightseeing or
other personal activities.
Finally, create a tax
projection well before
year-end. Use this information
to determine if
the steps you’re taking
now will help you avoid
a large tax bill at the end
of the year.
Call your tax accountant
today to make an appointment
to review your
situation.
FLORIDA WOMEN MAGAZINE 813.682.9364 JULY 2019 • 25