For Charlotte Taxpayers, A Basic Mid-year Tax Planning Method

Sara F Gonzalez

This past weekend, I had the fortunate opportunity to attend an educational conference in Tucson, where it rained heavily and the weather was cooler.

Because we're in the midst of summer, it's tempting to just sit back and relax for the next few weeks or so until the kids return to school, doing nothing different, making no adjustments, and making no plans.

It's natural, but one thing I urge you not to turn your gaze from (although tempting it may be at times) is the state of your money in 2017.

I've given you some "big picture" strategies for moving forward on your path to financial freedom over the previous few weeks, but I haven't written much about how our particular speciality, taxes, factors into this.

So, in that spirit, I've compiled a list of a few things you should consider in terms of your Charlotte family situation — not just your finances, but also your taxes — now, around the middle of 2017.

For Charlotte taxpayers, a Basic Mid-Year Tax Planning Method

“The secret of change is to focus all of your energy not on fighting the old, but on building the new.” -Dan Millman

The tax return preparation process is always a “historical” look at what happened throughout the year... yet there are always things we can do to “write” history, so to speak, DURING the year.

I'm going to give you some “quick and dirty” tax preparation advice for wage earners right now. Even if you don't have intricate investments or own a Charlotte business, there's usually a lot more you can do. That's worth talking about (so give us a call or send us an email!). However, here's an excellent place to begin...

To begin, simply multiply your cash flow for the first half of the year by two. Add up your salary, dividends, interest, and any other sources of income, and then double the total if it's close to what you're expecting for the second half of the year.

Give us a call (or send me an email) after you have your expected 2017 income, and we'll help you figure out the best tax rate and deductions to use. Because once you have this information, we can help you figure out how much tax you will owe for the 2017 tax year.

By comparing this to your projected withholding, you may make any necessary adjustments to your withholding on your paycheck ahead of time, ensuring a happy ending when your taxes are prepared.

This is also an excellent opportunity to arrange your financial documents or begin using financial software. (For example, YNAB, PowerWallet, and others.) Getting organised now will make compiling a report of all those deductions much easier when tax season arrives.

Also, higher tax rates on ordinary and investment income are imposed on richer Americans in particular.

That makes it even more critical to analyse Uncle Sam's most significant tax incentives, such as appreciated asset contributions, tax-free exchanges, and capital-loss harvesting.

These solutions, unlike obvious movements like contributing to a personal retirement account or a 401(k) plan, necessitate a higher level of awareness and active preparation.

However, not all high-impact breaks are reserved for the "affluent." Any homeowner can take advantage of a provision that allows them to keep tax-free income from renting a home for up to two weeks, and low-income taxpayers pay no tax on long-term capital gains.

Other key decisions can aid in the reduction of estate, gift, and inheritance taxes. There are a number of steps we may take to assist you with your year-end planning... However, you must allow us to assist you. After all, it's why we're here.

And it all starts with a photo of your current location.

So, send me an email or give us a call... we'll be happy to help.

I appreciate your faith in me and the referrals you've given me. Also, don't forget to share the information below with your friends.


Sara F Gonzalez
(704) 599-3355

Kohari & Gonzalez PLLC

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