Auerbach Law Group, P.C.
White Plains
914-686-7171
Chappaqua
914-238-7171
East Hampton
631-329-7171
Call us

Contact our offices

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

What is good about tax season?

Most Americans do not look forward to filing taxes. However, if you know what your options are, you may be able to use the law to your advantage to reduce your tax liability.

As a business owner, you might appreciate new legislation regarding tax breaks beginning with the 2018 tax season. In layman’s terms, you might be interested in new Section 199A tax legislation which includes:

  • The 20 percent pass-through deduction – If you are a business owner, you can now deduct an amount equal to 20 percent of your qualified business income. This applies up to a taxable income up to $207,000.
  • REIT and PTP deduction - You might qualify to combine your pass-through deduction with another deduction for 20 percent of your qualified real estate investment trust (REIT) dividends and income earned through a publicly traded partnership (PTP).

While these might be ways you can benefit through lessening the amount of taxes you are required to pay, there could be additional ways for you to reduce your tax liability.

It may be wise to explore your options

You are probably aware of many of the ways you can lower your tax rate. However, there are three common strategies the wealthy utilize during tax season.

  • Structure creation – A limited liability company (LLC) can help you manage your investments. Forming an LLC could also allow you to deduct certain expenses.
  • Estate and gift deductions – Through 2025, you can now deduct just over $11 million in estate or gift deductions. Depending on how much money you would like to set aside, you might consider establishing a long-term trust.
  • Donations – Many Americans deduct donations to charity through an itemized tax return. However, you might be able to write off a larger amount for putting a conservation easement on a piece of land.

These are good options to remember when you file your taxes. However, they might also be good to consider as you grow your business throughout the year.

No Comments

Leave a comment
Comment Information

Contact us

White Plains Office
81 Main Street
Suite 307
White Plains, New York 10601

Phone: 914-686-7171
Fax: 914-686-0168
White Plains Law Office Map

East Hampton Office
17 Beverly Road
Post Office Box 2888
East Hampton, New York 11937

Phone: 631-329-7171
Fax: 631-604-6140
East Hampton Law Office Map

Chappaqua Office
726 King Street
Post Office Box 488
Chappaqua, New York 10514

Phone: 914-238-7171
Fax: 914-238-4353
Chappaqua Law Office Map

map-bg map-bg