Tax Deducts And Credits For End Of Year?
I'm seeking some advice on whatever ways I can reduce my tax burden. I have a long term gain (taxed at 10%)and would like to do whatever I can to reduce it (while I still have the chance).
There is currently no propery to protect by creating a corp, but I plan to file a simple sole proprietor ship, purchase some home study materials, get some legal advice, possibly buy some advertising. Every expenditure would count as a loss at this point, and work to lower my gain (somebody correct me if I'm missing something.)
Anything else come to mind to spend some cash on NOW this year?
A good accountant would be a well spent $.
Quote:I have a long term gain (taxed at 10%)....srj19,
Better get that CPA advice soon. Long term capital gains tax rate is either 5% or 15% depending upon your tax bracket, not 10%.
Is something changing per 1/1/05 in these tax laws?
NewKid- Anything simple to state when it falls into the 5% bracket?
~Thanks
If you are in the 15% tax bracket or lower,the maximum long term capital gains tax rate is 5% through 2007. In 2008, and for that year only, the long term capital gains rate is zero. In 2009, the rate goes goes up to 10%.
If you are in the 25% tax bracket or higher,the maximum long term capital gains tax rate is 15% through the end of 2008. In 2009, the long term capital gains tax rate becomes 20%.
Regardless of your tax bracket, depreciation is recaptured at 25%.