Home / Articles / Accelerating deductions to save taxes

Accelerating deductions to save taxes

November 18, 2014

Share:

Smart timing of deductible expenses can reduce your tax liability, and poor timing can unnecessarily increase it. When you don’t expect to be subject to the alternative minimum tax (AMT) in the current year, accelerating deductible expenses into the current year typically is a good idea. Why? Because it will defer tax, which usually is beneficial.

One deductible expense you may be able to control is your property tax payment. You can prepay (by Dec. 31) property taxes that relate to this year but that are due next year, and deduct the payment on your return for this year. But you generally can’t prepay property taxes that relate to next year and deduct the payment on this year’s return.

Don’t forget that the income-based itemized deduction reduction returned last year. Its impact should be taken into account when considering timing strategies.

Not sure whether you should prepay your property tax bill or what other deductions you might be able to accelerate into 2014? Contact us. We can help you determine what steps to take before year end to reduce your 2014 tax bill.

© 2014

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

Clark Schaefer Hackett Names Kyle Shumate as Chief Marketing Officer

Article

2 Min Read

How the Inflation Reduction Act Is Extending and Expanding Solar Energy Tax Incentives

Article

2 Min Read

Year-End Tax Planning: Act Now to Reduce Your 2022 Tax Bill

Article

2 Min Read

Is Your Business Tracking R&E Expenses in Preparation for New Section 174 Amortization Rules?

Article

2 Min Read

The Inflation Reduction Act Extends Energy Efficiency Building Incentives

Article

2 Min Read

Inflation Reduction Act Expands Valuable R&D Payroll Tax Credit

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.
  • Hidden
  • This field is for validation purposes and should be left unchanged.