It may be hard to believe, but tax season has arrived.
We all know things can get complicated, especially if you bought or sold property last year or made any charitable donations. There are also a few tax law changes for the 2021 year that may affect you.
Have you started preparing your taxes yet? It’s important to check in with your trusted financial advisor as well, but if you’re just getting started, keep these five key steps in mind.
- Know your deadlines. If you’re self-employed or own a business, you likely have quarterly tax payments coming up. You’ll also want April 18 — the deadline for filing most individual tax returns — on your radar.
- Double-check your tax bracket and capital gains rate. Understanding your tax bracket and capital gains rate can help you better estimate your annual tax bill. Then, you can begin setting aside funds accordingly.
- Be aware of all the deductions you can claim. Make sure you know all your potential write-offs, including for your home office if you worked from home this year. And don’t forget about any deductions that go along with owning or investing in real estate.
- Gather all necessary paperwork. Pull together your W-2s, 1099s, property tax statements, mortgage tax statements and applicable receipts.
- Make an appointment with your accountant or financial advisor. Of course, your financial team will be able to guide you through this process successfully. Don’t wait too long to set up an appointment during what is probably a busy time for them.
Considering investing in more real estate this year? Get in touch today.