Last Minute Tax Planning: Family Tax Deductions

11/12/2021

If you have a child under the age of 18 and you operate your business as a Schedule C sole proprietor or as a spousal partnership, you absolutely need to consider having that child on your payroll. With a traditional IRA, the child can avoid all federal income taxes on up to $18,550 in income. If you run your corporation as a corporation, you can still benefit by employing the child even though both your corporation and your child suffer payroll taxes. If you bought your house after December 15, 2017, then the reduced $750,000 mortgage limit from the TCJA applies. For two single people, the maximum deduction for mortgage interest is based on a ceiling of $1.5 million.
If you are married on or before December 31, 2021, you get married for the entire year. If a loved one is in the 0 percent capital gains tax bracket, you can get extra bang for your buck by giving this person appreciated stock. You give Aunt Millie shares of stock with a fair market value of $20,000, for which you paid $2,000. If you're married and you made the gift together, you each have a $15,000 gift-tax exclusion.

I understand that taxes might be perplexing. That is, after all, why you have me! I'm always available to help. Please contact me if you wish to discuss.

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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

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