While the climate for tax reform remains uncertain, individual taxpayers and small-business owners are advised to act based on the current laws of the land, unless there is a definite change. Keeping that in mind, here are seven ideas to consider as we head into summer.
1. Harvest capital gains or losses. The maximum tax rate for long-term capital gains is 15%, or 20% for certain high-income taxpayers. When appropriate, you may realize capital gains to benefit from this special tax treatment. Conversely, if it suits your purposes, you might harvest capital losses instead. Capital losses offset capital gains plus up to $3,000 of ordinary income. Any remaining loss is carried over to the next year.
In addition to providing tax related services during filing season, the professionals at KOS are available throughout the year to offer assistance with tax planning and financial decision making. Connecting regularly with your KOS Advisor can help you avoid tax and financial missteps, in addition to ensuring you are making the best decision at the right time even after you have filed your tax return.
Timely Points of Particular Interest
Luxury Car Limits—The deductions for vehicles used for business driving are limited by the so-called luxury car rules. The IRS, which indexes these limits annually, recently announced the maximum deductions allowed for vehicles placed in service in 2017.
IRS Special Edition Tax Tip 2017-08
In anticipation of the start of hurricane season, the IRS has released a number of tax tips, reminders and other advice to help taxpayers cope with natural disasters and similar emergencies.
If you own a vacation home that you and your family use personally, there is a unique tax window of opportunity for short-term rentals. Generally, income that you receive for the rental of your vacation home must be reported on you federal income tax return.
To download our newsletter into a PDF, click June 2017 Bottom Line Bulletin.