A second home
Bought a second home? If you want to deduct your property taxes, you’re good to go, no matter the type of house.
“If you own a second home, and you itemize expenses on Schedule A, you can deduct the loan interest on the mortgage and the property taxes. Don’t forget that a second home can include an RV, tiny house or boat, so long as it has a kitchen and bathroom facilities,” said Thomas J. Williams, EA, tax accountant and co-founder of Deducting the Right Way. Find out 6 Major Life Events That Influence Your Taxes.
Negative investment returns
If your company or business suffered a financial loss, there is a way to offset some of the losses.
“This is the time of the year when it is good to review your portfolio for any investments with a negative return. Capital gains taxes are paid on investments sold with a positive gain during the year. Investments sold at a loss, however, can be used to show reduced earnings on your portfolio. Reduced earnings often mean reduced taxes. You can only apply losses on long-term stocks against the gains on long-term stocks. The same rule applies to short-term stocks. Short-term losers offset short-term winners”, according to Gary Scheer, investment advisor and founder of Retirement Financial Advisors, LLC.
Read also 5 Smart Strategies to Avoid Taxes on Social Security Benefits.
