2018 is the first year you need to do year-end Section 199A tax planning.
And if you fail to plan, there are consequences. Big consequences.
For starters, you could miss out on the huge 20-percent deduction you may be entitled to. Ouch!
But don’t worry. It’s not too late to bring your Section 199A deduction back to life.
The first thing you need to do is take a minute and read my new article titled Tax Tips: 2018 Last-Minute Section 199A Strategies.
Four tax strategies you can use to reduce your income taxes
and increase your Section 199A deduction
Strategy #1: Harvest your capital losses. If capital gains are hurting your Section 199A deduction, you still have time before the end of the year to harvest your capital losses. These losses can then be used to offset those “harmful” gains. You’ll get the whole story when you read the full tax reform article.
Strategy #2: Do good and do well by making charitable contributions. You can use itemized deductions to reduce and/or eliminate “threshold” problems and increase your Section 199A deduction. Charitable contributions are the easiest way to increase your itemized deductions before the end of the year as you’ll learn when you read the full 199A article.
Strategy #3: Be sure to make your retirement contributions. Any retirement contributions you make directly reduce your taxable income. And you still have the money growing inside your retirement account. If you’ve got the money, funding your retirement accounts is a complete no-brainer as you’ll learn when you read the full article.
Strategy #4: Buy bonus assets. Thanks to 100-percent bonus depreciation and Section 179 expensing, you can write off the entire cost of most assets you buy and place in service before December 31, 2018. You’ll get all the details when you read the full article.