Tax Break Ideas for the Summer
Although the forecast for tax reform is still uncertain, here are some tax-saving ideas for the upcoming summer months:
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Vacation: Flights & hotel for a visit with a client – As long as the primary purpose is business related you can deduct your expenses associated with the business travel (airfare, lodging and 50% of your meals). If you add some time to your trip purely for vacation, these expenses are not deductible.
Capital Losses: If you’ve already collected short-term capital gains this year, sell securities this summer at a loss to offset those gains, plus up to $3,000 of ordinary income. Otherwise you might have to pay tax on short-term gains at rates up to 39.6% as well as owing the 3.8% Medicare tax.
Company Gathering: Write off 100% of the cost of a BBQ or another get-together for your staff this summer (and business doesn’t even have to be discussed).
Graduation Gift for your College Grad: If your child graduated from college this spring, he or she m1y have already landed a job. You can generally claim a $4,050 dependency exemption deduction for the child in 2017 if you provide more than half of his or her support for the year. Being generous with your graduation gift could help you clear the half-support mark.
Day Camp: If your child is under age 13 and goes to day camp (overnight camp doesn’t qualify), the cost is eligible for the dependent care credit. Maximum credit is usually $600 for one child and $1,200 for two or more.
Take A Summer Course: Take a course at a local school that helps you brush up on your skills or presents the latest developments in your field the cost is usually deductible (the course can’t qualify you for a new business or profession).