On many occasions, handling tax filing can be a hell of a task owing to the number of rules that come and go. Therefore, many taxpayers head out there to seek professional advice and services to avoid a crash with the government. Besides, many financial wizards have come in play with a tip or two on how citizens can go about their tax filing effectively. Ted Bauman is among the few professional and celebrated individuals whose tips have assisted many taxpayers to file the needed tax.
Late last year, Ted published ten tips that would assist taxpayers to pay less tax by utilizing the few laws that are still in play and not break any new law. Recently, the legislature passed a tax bill with most rules targeting the income earned in 2018 and years to come. From the look of things, the new rules will reduce taxes in the coming years. On one hand, low income earners can plan on paying less. On the other hand, many businesses will enjoy larger deductions when they pay personal taxes.
First, Ted insisted that citizens should make sure they prepay their property taxes and mortgage interest before January 2018. For those who followed his advice, Ted stated that they should remember to deduct both years’ expenses while filing returns this year. Ted went ahead to advice taxpayers that they should pay for their planned medical services before 2017 ends.
Also, Ted insisted that his audience make any donations before the 1st of January and keep together receipts of all the donations made during the year. Ted went ahead to clarify that from the new rules, legislators decided to eliminate the student loan deduction. Although the deal seems sweetened, Ted suggested that individuals should pay the interest in late December to enjoy the gain that comes in hand.
Ted Bauman did not leave car buyers aside. Ted stated that those eyeing for a car should have gotten it before the end of last year. This timing was perfect as those who did it are likely to qualify for state sales tax reductions. For the contractors, Ted hinted that they should convince their clients to make payments before the end of 2017. By doing so, the contractors will have a chance of boosting their federal deductions come April.
Ted went ahead to inform his clients that they should request their yearly bonuses in December for their own benefit. However, for those who pay low state taxes, it was wise to push the payment time to January so as to enjoy the lower federal tax rates. For individuals with business or retirement accounts, Ted suggested that they should switch to Roth IRAs. However, Ted added that before doing so, one should take time to consider if the switch is making sense regarding potential savings.
According to the new IRS rules, only 1,031 swaps involving real estate will be allowed. Hence, Ted encouraged business proprietors to complete any other trades before 2018. As a result, this businesses will enjoy capital gains tax advantage through the year. Lastly, Ted encouraged people to try and establish LLCs during 2018. With the new rules, most individuals will reduce their taxes while operating as limited liability companies.
About Ted Bauman
Ted Bauman is a celebrated financier and has been involved in assisting many individuals when it comes to finance. The successful financier schooled at the State University of New York where he acquired a B.S. in Business Administration. Also, Ted joined Georgia State University where he earned his MBA. He also holds postgraduate degrees in economics and history from the University of Cape Town.
When it comes to work experience, Ted takes pride of being in the field for enough time. For over 25 years, Ted was working as a fund manager in South Africa. Ted is also working as an editor at The Bauman Letter, Plan B Club and Alpha Stock Alert where he enlightens his readers on international immigration issues, privacy and asset protection as well as low-risk investments. The Georgia resident joined Banyan Hill Publishing in 2013.