Here are 4 great resolutions to make for building tax-free wealth in the next year.
First, resolve that you will stay up to date with bookkeeping. Bookkeeping impacts everything else, so it is essential to keep it updated throughout the year. Setting a solid foundation starting today will help you develop the habit and keep you ahead as the year goes on.
Second, resolve to document important items. Documentation not only helps you get through a potential audit – it is also a great way to keep track of potential tax deductions. Some items worth tracking all year are a mileage log, real estate hours (for real estate professionals), business expenses, and travel expenses.
Third, resolve to ensure that salaries and distributions are on track. You can reduce taxes by optimizing the way you receive money from your entity or entities. This could be in the form of salaries or distributions. As you start the year, make sure the salary or distributions you receive from your entity is or are on track. If changes need to be made, make them early so you don't have to scramble at the end of the year.
Fourth, resolve to develop and stick with a strategy. You need a clear plan that you can follow all year round. Working with a specialist can help you create a solid plan and keep you accountable as the year goes on.
Following these basic tips will help you get the year started right and prepare you for a successful year of building tax-free wealth.
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