How to Lower Your 2012 Tax Bill

Tuesday, October 9, 2012

How to Lower Your 2012 Tax Bill

Daily Real Estate News | Tuesday, October 09, 2012

Real estate agents still have time to reduce their 2012 tax bill through such methods as buying business equipment, like computers, software, or even a car by the end of the year.

The Internal Revenue Code enables them to deduct the entire amount in one year for tangible personal property used more than 51 percent of the time for their business. Real estate professionals also can set up retirement accounts, with maximum total contributions of $50,000 that can be deducted from taxable income, sell losing stocks, and deduct up to $3,000 in losses from ordinary income if their total capital losses exceed their total capital gains. They can also open aHealth Savings Account with maximum deductible contributions of $3,100 for singles and $6,250 for couples.

Finally, they can reduce their 2012 tax bills by donating money and/or property to charity, taking care to record all their donations.

Source: "5 Things You Can Do Now to Lower Your 2012 Tax Bill" Inman News (10/05/12)
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