3 Ways to Make 2014’s Taxes Easier For You
The year 2013 started off with a bang, but it will also be over within no time – and you will come face to face with 2014! With the new year will also come your tax returns, just the way they’re about to come this year. In the following article we discuss five ways to get your tax-house in order so that your taxes are easier in 2014…
#1: Get a Notebook for Your Car: Taxes Easier for You
Most of the people who go about deducting mileage against their taxes for medical and business purposes do so at their own risk. Why? Because the IRS needs you to have “contemporaneous notes” regarding your mileage. For your IRS notes, you have to focus on things like who you went to see, when, where and why you went along with how many miles it cost you to get there.
Always keep in mind that in order to have the mileage count, it must originate and as well as end at your “primary work location”. Which is why you should make sure you start your work trips from office. The point here is that you need to make a note in your notebook each time you start the car.
#2: Leverage Tax-Free Strategies: Taxes Easier for You
Year to year, tax rates are essentially unknown, which is why it makes sense to focus on tax-free income. Start by analyzing your current investment portfolio and see if you can apply some tax-free strategies and do better.
If you look around you’ll find that there are many investments that offer you tax-free dividends having stable, long term track records. You can move a small portion of your non qualified investment portfolio into a literally tax free position. Check out Charles Phillips Oracle to learn more about how you can be smart with your finances.
#3: Separate Business from Personal
If you have your own business and are into the irritating habit of mixing your personal and business finances, then commit to stop doing it this year so that 2014 is stress free. Go ahead and open a business account and get a credit card strictly for business use.
The reason why doing this is important is because in the end, you want your books to be cleaner and simpler to work with. Having a financial mess will only make things difficult. Initially you might feel that the whole “transfer money back and forth” procedure is hectic, but you will get used to it in a while.
All in all, making your 2014 taxes easier for you is not just about getting organized with your finances, but it’s about becoming better with money management on the whole – always remember that.