5 Tax-Saving Strategies to Help This Tax Season

Written by Posted On Tuesday, 10 February 2015 14:20

5 Tax-Saving Strategies to Help This Tax Season

Millions of Americans face a challenge in meeting their budgets every month – not just financially, but also in their time budgets, says investment advisor Reid Abedeen.

“Knowledge is power and time is often money, but what if you don’t have the time to empower yourself with knowledge? For many households, that often means losing out on thousands of dollars through tax deductions,” says Abedeen, a partner at Safeguard Investment Advisory Group, LLC.

“As a family man myself, I understand what it means to work hard to provide the best possible for my wife and children. Had I not worked in the financial sector for almost two decades, I might not have understood how to best troubleshoot my tax return, I sympathize.”

Abedeen offers the following strategies that may be relevant for your family this tax season.

  • Take tax deductions for capital loss. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately. However, you may deduct capital losses only on investment property, not on property held for personal use.
  • Fund your retirement to the max. You can contribute up to $5,500 to an IRA in tax-year 2014, or $6,500 if you are age 50 or older. Workers in the 25 percent tax bracket who contributed $5,500 to an IRA would save $1,375 on their 2014 tax bills. You’ll want to check your eligibility and understand the deadline for the 2014 deduction. If you make a deposit between Jan. 1 and April 15, you need to tell the financial institution which year the contribution is for.
  • Advisory fees are tax-deductible. Don’t feel like spending money to save and make money? There’s a workaround. Before closing the door on the possibility, inquire with a financial expert. Most are happy to give a free initial consultation, and you don’t have to be a millionaire to make it worth your while.
  • Gift assets to children. You don’t even have to file a gift tax return on an asset that’s valued less than $12,000, which is not taxable. If the fair market value of the gifted asset is more than $12,000 per person per year, but less than $1 million, there is the requirement of filing a gift tax return, but you won’t be taxed. The gift still is not income taxable to the recipient.
  • Deduct a home-based office when used for your employer. If space in your home is used exclusively and regularly for a trade, you can count that as a deductible. Calculate the square footage of your home office and divide the area of your office by the area of your house. If the percentage is 14 percent, for example, that represents the percentage of your total home expenses that can be allocated toward the home office deduction. For further questions, consult a professional.

“You’ll want to be very vigilant regarding these details of these deductions,” Abedeen says. “For any questions, I seriously recommend consulting a professional.”

Reprinted with permission from RISMedia. ©2015. All rights reserved.

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Diana Merola

Diana Merola has lived in the Colorado Springs/Monument area for the past 13 years.  She is a graduate of The University of Texas where she earned her Bachelor's degree in Business with a concentration in Marketing.  In 2004, Diana further earned her real estate broker license and is associated with Shorewood Real Estate as a Broker Associate.  She will guide you through a smooth real estate experience, communicating with you throughout.  Diana's attention to detail will impress you and often her listed homes sell ahead of the average, selling homes in all price ranges. Through good markets and slow markets, you can count on Diana to help you get your property sold. You are most important and you are assured the one on one attention you deserve.

Diana is an active member of the Pikes Peak Association of Realtors, National Association of Realtors, and the Colorado Association of Realtors.  She has extensive experience with Relocations, Military families & USAA members.

Diana began her career working with Fortune 500 Companies, marketing in several Southern and Eastern states around the country eventually becoming a District Manager.  Over the years, her development of business, keen skills and public relations afforded her the opportunity to become a successful business owner and Entrepreneur.  Diana's success was enhanced by the support of her husband Ken and when it came time for his business move to Colorado, Diana supported his move as well.  Diana sold her own business in a short period of time and came to realize the start of a career in real estate.  Diana’s extensive business  knowledge, attention to detail and negotiating skills are all benefits as a Realtor but it is the genuine care she has for her clients that really drives her.  Diana's husband is an Engineer in Colorado Springs.  They have three wonderful kids. Their youngest graduated Lewis Palmer High School in May Summa Cum Laude and is attending the University of Colorado, Boulder studying computer science. He also volunteers with Diana for the Fostering Hope Foundation. Their daughters, one in her last year in college and the other a Physician Assistant love to spend their time in the Colorado mountains snowboarding or climbing "The Incline".  Who can resist the beautiful snow and Colorado blue skies!! 

But when it's time to for business, Diana would love to put her experience to work for you.  Whether you need to sell your home or find your perfect home, Diana can help.  "Call anytime, I am only a phone call away.  I look forward to hearing from you."

A Special Thank You to our Military Men and Women For Your Dedication to our Country!
 Including my father who at the age of 17 left his senior year to enlist in the Navy to fight in
 World War II and later in the Korean War.  My heart is with you, the military families.

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