Tax Planning - Zashin Law

Tax considerations during, after divorce

Though the April 15 tax filing deadline is now behind us, we know that it will come again. With that in mind, and while the matter is still top of mind, let’s discuss important tax issues that may impact your filings next year. I have previously discussed child-related tax benefits available to divorcing parents and the importance of allocating which parent claims the children in a final divorce decree and the potential tax win-win of contributing to a donor advised fund. There are also a variety of other tax-related items that individuals should consider both during and after a divorce.

Many individuals ask about the tax impact of child support, spousal support and property transferred pursuant to a divorce. Payments of child support are non-taxable transfers: the payments are not deductible to the payor (the person paying support) and are not taxable to the payee (the person receiving support). Payments of spousal support under orders issued after 2019 are similarly nontaxable transfers. Likewise, there is usually no taxable impact on property transferred between spouses, or former spouses, pursuant to a divorce.

During the divorce process, couples must decide how they are going to file their tax returns. If a couple is divorced by Dec. 31 of any given year, they must file separate income tax returns as single or head of household filers. If a couple remains married on Dec. 31, however, they must file under married filing jointly or married filing separately status. While I encourage everyone going through a divorce to consult with their accountant or tax professional to identify the tax-filing status that is best for them, the “rule of thumb” is for divorcing couples to file in the manner that maximizes total refund or minimizes total liability. The IRS also recommends that individuals going through a divorce file new Form W-4s with their employer to update their withholding amounts to reflect their anticipated filing status and number of dependents that they intend to claim.

After a divorce, the Internal Revenue Service may contact individuals to collect taxes due from returns that parties jointly filed during the marriage. If one spouse did not know that the other spouse improperly reported income, claimed improper deductions, or otherwise misrepresented tax information without their knowledge or consent, however, they may qualify for innocent spouse relief and be shielded from liability regarding all or some of the amount due. To qualify for innocent spouse relief, the requesting spouse must meet certain criteria and must demonstrate that the: (1) tax understatement was due to the other spouse; and, (2) requesting spouse did not know, nor did they have reason to know, of the understatement. Additionally, the requesting spouse must show that it would be unfair to hold them responsible for the liability.

There are three types of innocent spouse relief available: traditional relief, which provides full relief from additional taxes owed; separation of liability, which allocates additional taxes owed between the spouses; and, equitable relief, which may apply when neither of the foregoing apply. Innocent spouse relief can be requested at any time after a joint return has been filed, however, there are specific time limits for each type of relief. To support an innocent spouse relief claim, the requesting spouse may need to provide documentation and evidence to demonstrate their lack of knowledge or involvement in the tax issue. This can include financial records, communications between spouses, and any other relevant information.

These are just a few of the tax-related items that individuals should consider when going through, or after, a divorce. As always, I encourage individuals to consult with an accountant or a tax professional to discuss the above and other tax considerations that may apply to their specific situation.

This article originally appeared as a column for the Cleveland Jewish News.

unity_design2024-04-19T11:15:50-04:00April 19th, 2024|Child-Related Tax Benefits, Divorce, Innocent Spouse Relief, Tax Breaks, Tax Planning, Taxes|

Dig into holiday spirit to help on-the-ground organizations

By Andrew Zashin

Year-end giving is a philanthropic tradition that holds special significance as the calendar draws to a close. As the final months of the year unfold, individuals, corporations and foundations often reflect on their achievements, growth and the impact they can make on the world. This introspection often culminates in a surge of generosity and charitable donations, collectively known as year-end giving.

Aside from altruistic reasons for giving, there are also other more practical considerations as well.

One of the primary reasons for the increase in charitable contributions toward the end of the year is the holiday season, and with it, the holiday spirit. Tax planning is another great motivator for year-end giving. Specific advantages vary depending on a particular individual’s circumstances, but charitable giving can create a win-win for both the giver and recipient. Some individuals may also benefit from giving for estate planning objectives. Whatever the reasons, giving might create opportunities for the giver.

The festive season, marked by holidays like Thanksgiving, Chanukah and Christmas, fosters a sense of compassion and goodwill. Many people are inspired to share their blessings with those who are less fortunate, making it a time when charitable organizations experience heightened support. The act of giving during the year-end becomes a way for individuals to spread joy, hope, and make a positive difference in the lives of others. Now, especially, during this time of crisis and conflict, it is more imperative than ever for individuals and entities to tap into this holiday spirit and support those in need.

Donations to on-the-ground organizations in Israel and Gaza play a vital role in providing immediate relief and assistance to those innocent victims affected by the conflict. These organizations depend on financial contributions to deliver essential services, medical assistance and humanitarian assistance.

By donating to these organizations, you can give children, families and soldiers hope in the face of uncertainty regarding their loved ones, livelihood and safety. Your donations enable organizations to respond swiftly and effectively to the urgent needs of these communities, providing a lifeline to individuals who may be struggling to meet their basic needs.

Consider the following organizations when making donations this holiday season:

Magen David Adom: A donation to MDA, Israel’s national emergency service, helps purchase equipment for the rescue teams on the front lines and on the battlefields, directly in the face of danger. Donations are used to purchase ambulances, medical equipment, protective equipment, bandages and other equipment that helps save lives.
Israel Emergency Aid: Israel Emergency Aid is an Israeli organization committed to ensuring that every fighter has the necessary combat and defense gear they need to triumph over terrorism.
Friends of the Israel Defense Forces: Friends of the IDF is an organization authorized to provide for the welfare of soldiers in the IDF.
Jewish Federation of Cleveland: The Federation has launched its Israel Emergency Campaign to help provide immediate assistance to victims of Hamas’ terrorism and their families.

This article originally appeared as a column for the Cleveland Jewish News.

unity_design2024-01-02T10:39:45-05:00January 2nd, 2024|Charitable Donations, Deductions, Estate Planning, Tax Planning|

Donating from your digital wallet

By Andrew Zashin*

We are only days away from the new year which means I’m here to remind you once again about charitable giving and its potential associated financial benefits. It was just over one year ago that I discussed the benefits of donating appreciated stocks to charities. Recently, I discovered that similar to stocks, you can donate cryptocurrency to charity.

The benefit of donating cryptocurrency is like the benefit you receive if you donate stock directly to a charity: the avoidance of paying capital gains tax.

In other words, by donating cryptocurrency directly to a charity you can avoid paying capital gains taxes on the cryptocurrency while claiming the full amount donated as a charitable deduction on your taxes. If you don’t recall from my prior column, capital gains is the difference between the purchase price of a stock or cryptocurrency and the selling price. The amount of capital gain taxes you pay is dependent on two things: the length of time you’ve owned the cryptocurrency and your total annual income.

However, if you donate cryptocurrency directly to the charity, instead of selling it first, you can avoid paying capital gains taxes on the donation, just like donations of appreciated securities.

In addition to avoiding capital gains taxes through donation, you may also have the ability to claim a charitable deduction. To do so, you must have held the cryptocurrency for at least a year and you must itemize your deductions. Donations worth more than $5,000 must get a qualified appraisal. The charitable deduction is limited to 30% of income, but excess deductions may be carried forward for up to five years. Donations of cryptocurrency are not eligible for the above-the-line charitable deduction, since the above-the-line deduction is limited to cash donations.

Donating cryptocurrency can, however, be a little more complicated than donating securities since the vast majority of charities do not have a digital wallet, and therefore do not have the ability to accept direct donations. However, entities such as Crypto for Charity, Schwab Charitable and Fidelity Charitable are attempting to make the cryptocurrency donation process easier.

How does it work?

Per the Crypto for Charity website, your cryptocurrency donation is first funneled through Crypto for Charity’s affiliated 501(c)(3) tax-exempt charity. From there, the donation is converted to dollars with the net proceeds being distributed to the qualifying charity of your choosing.

If you’re interested in donating cryptocurrency this year or in the future, make sure you research the organization prior to your commitment. Further, given the tax ramifications associated with cryptocurrency donation, it is best to discuss your potential donation with an accountant prior to moving forward.

This article originally appeared as a column for the Cleveland Jewish News.

Andrew Zashin2023-11-10T13:38:04-05:00December 23rd, 2022|Charitable Donations, Cryptocurrency, Tax Planning|

Donor-advised funds provide tax win-win

By Andrew Zashin*

Hundreds of billions of dollars have accumulated in donor-advised funds since this vehicle was created all the way back in the 1930s. In fact, an estimated $110 billion is sitting in these funds right now. All, or at least virtually all, of the biggest investment firms in the country now offer this type of philanthropic product to investors, and these funds have proven to be quite lucrative to firms given the volume of cash flowing into them.

What is a donor advised fund?

It is an alternative method of giving that provides tax benefits beyond simple direct giving, at far less cost and administration headache than the creation of a foundation.

While a small subset of donors may find that the creation of a foundation, or even a specific charitable organization, best suits their philanthropic goals, these things require a good amount of administrative oversight and cost. They are simply out of reach – or make little sense – for most donors.

Direct giving – that is, making the donation directly to the charitable organization – may make sense in the majority of cases. After all, it is relatively simple to write a check to a specified organization. Then the donor can simply keep track of donations and then itemize these donations as deductions at the end of the tax year.

But if you are going to have an unusually high-adjusted gross income in a specific tax year – maybe because you exercised some stock options or got a big cash payout –you might consider contributing to a donor advised fund in order to increase your tax deduction and offset the higher tax burden for that year. Or, you might opt to donate appreciated securities or other assets, at fair market value rather than the original cost basis, avoiding capital gains.

Once the money is invested in a donor advised fund, it grows tax-free and then is paid out tax-free to charitable causes. It sounds like a win-win. The donor gets additional tax benefits with minimal administrative headaches, and the charitable organizations get more money because the tax-free growth means there is simply more to give.

The reverse side of the coin is that you are giving up control of the money by placing it in a donor-advised fund. As the name implies, the “donor” is merely an “advisor” as to how and when funds should be allocated. Although, as a practical matter, account managers are unlikely to attract new dollars and investors by entirely disregarding the “advice” given by account holders.

Interestingly, this type of fund has recently come under some fire because of the suggestion that wealthy would-be donors are taking advantage of the tax benefits but then never actually directing funds to be paid out to charitable organizations. The assertion is that billions of dollars are simply sitting there, hopefully growing, but doing nothing to benefit any actual cause.

Hard data simply to support or refute this simply does not exist. However, earlier this year, the California legislature introduced a bill that is intended to provide more oversight into these accounts in order to determine if the “spirit” of these accounts is being routinely violated. It is unclear at this point if such legislation will pass, what new oversight might show, and if any strengthened oversight requirements will be ultimately adopted by other states or at the federal level.

This article originally appeared as a column for the Cleveland Jewish News.

Andrew Zashin2023-11-10T13:38:10-05:00February 21st, 2020|Charitable Donations, Tax Breaks, Tax Planning|

Donor-advised funds popular with tax reform

By Andrew Zashin*

The donor-advised fund is becoming a more popular vehicle for charitable giving under the recent tax law reforms.

Among many changes, the new tax laws increase the standard deduction for both individuals and married couples, making it more beneficial for many taxpayers to simply take the standard deduction instead of itemizing and capitalizing on things like state and local taxes, student loan interest and mortgage interest.

Since many taxpayers will no longer benefit from itemizing deductions, this has become a way to retain the benefit of charitable donations that previously would have been itemized. This vehicle may also be a beneficial planning tool for donors who have experienced a particularly high income year.

With an initial contribution of at least $5,000, anyone can open up a fund that can then be professionally managed and invested. Once created, the donor can use the fund’s assets to contribute to his or her favorite charity, at any time.

Using this vehicle, a taxpayer could potentially fund a few years’ worth of giving in one tax year. The idea is, then, to contribute enough to make itemization more beneficial in the contribution year, even if the standard deduction is more beneficial in other years. Then, rather than giving the entire contribution amount to the charity in the contribution year, the donor can opt to spread the contribution out over several years, allowing the remaining balance to grow between donations.

As a simple example, say an individual typically donates $4,000 annually to charitable causes. This donor could pre-fund five years of giving, or $20,000, into a donor-advised fund. He or she can then direct annual contributions at the same level, while contributing enough in a single tax year to make itemization worthwhile, thus deriving a greater tax benefit than the standard deduction every fifth year.

In addition, appreciated non-liquid assets, such as securities, can be contributed. As such, many opt to use a donor-advised fund as a mechanism to reduce or eliminate capital gains tax, lower total income tax liability, and, ultimately, to provide a larger donation to the cause of choice.

Donor-advised funds may also be used as part of an overall estate plan.

Of course, the desirability of this type of fund will depend on several factors. A donor-advised fund may have significantly lower overhead than, say, a private foundation. However, a foundation or dedicated non-profit organization may have greater longevity. While a foundation or organization could last for generations, some organizations that sponsor donor advised funds may have limits as to how long that donor-advised fund can exist. And, while other giving mechanisms may afford greater control over the use of funds, a donor-advised fund theoretically only takes advice from the donor about the use of the monies, rather than being mandated to use those funds in a particular way (although it would be unusual for a sponsoring organization to use the funds against the donor’s direction.)

Ultimately, if you think that this type of vehicle may be right for you, you will want to speak with a financial professional to determine what is best for your situation.

This article originally appeared as a column for the Cleveland Jewish News.

Andrew Zashin2023-11-10T13:38:10-05:00February 14th, 2019|Charitable Donations, Tax Planning|

Philanthropic giving for average donor

By Andrew Zashin*

The Internal Revenue Service identifies some 29 different types of organizations that are exempt from federal income tax.

In the most basic of terms, these are “nonprofit” organizations, or entities that exist generally for a purpose other than making money, and it is to nonprofits that we think about directing our philanthropy.

While you may make donations to causes such as a fraternal organization or a political campaign, in terms of philanthropic giving, you are probably most familiar with 501(c)(3) organizations. These are more commonly known as “charitable” organizations, and the “501(c)(3) label refers to the specific subsection of the Internal Revenue Code under which they are organized.

These types of organizations include only those which are “organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals…”

So what does this mean for the average donor?

In deciding where to put your donation dollars, obviously it is most important to select a cause that you believe in. However, people choose to donate for many reasons beyond the simple “feel good” factor of helping a good cause. Of course, the deductibility of charitable gifts has been impacted by the recent tax reforms. But if tax deductibility is on your radar you will want to speak with your accountant or financial planner before making any large donations to be certain the donation will be deductible.

When searching for that perfect charitable cause, know that you will come across many, many options vying for your money, and it can be difficult to know where to start. Websites like Charity Navigator, Charity Watch, GuideStar and Consumer Reports evaluate an astounding number of organizations on topics such as operating and fundraising overhead, total contributions, sources of contributions, and other information that may be of interest.

The majority of donors will look to contribute to public charities. That is, most people will make donations toward an organization that regularly receives contributions from the general public and has active programs. Organizations in this category might include a synagogue/temple/shul, an animal welfare organization, an educational organization, or a benevolence organization, just to name a few.

Of course, private foundations are another option. These entities are typically nonprofits that have been established from funds from a single source or small group of sources, such as a family or corporation. They often have no active programs of their own, but support the work of other public charities through grants.

Ultimately, what is right for you will depend on your personal tastes and how you prefer to see your funds allocated. With a little research you are sure to find the right fit for you.

This article originally appeared as a column for the Cleveland Jewish News.

Andrew Zashin2023-11-10T13:38:12-05:00February 15th, 2018|Charitable Donations, Non-Profit, Tax Planning|

Proposed tax changes may impact alimony awards

By Andrew Zashin*

If you haven’t heard about the competing tax plans proposed by Congress, you haven’t been reading the news.

Just as soon as the House of Representatives released their proposed tax plan, the phones started ringing at the offices of domestic relations lawyers throughout the country.

Currently, alimony – which is more appropriately called “spousal support” in Ohio – is considered taxable income to the recipient, and tax-deductible to the payer. In that way, income tax on the money will generally be paid by the person in the lower income tax bracket. (In contrast, income tax on money that goes toward child support is the responsibility of the payer.) Divorce lawyers have long taken advantage of this tax schema to help resolve their cases, since it gives the higher income earner some incentive to agree to a higher amount of spousal support than he or she might otherwise.

It is true that spousal support awards – which originally were intended to provide for women who were predominately homemakers or who had lower-earning positions than their spouses – have been decreasing over time as societal norms change. Even so, IRS statistics indicate some 12 million tax returns claim deductions for spousal support payments each year, and it remains an important component of many divorce negotiations.

In theory, removing the deduction could generate higher revenues because the money would be taxed at the payer’s higher tax rate. In addition, this proposal looks to address the disparity in reporting; the number of recipients claiming spousal support income totals something closer to 10 million, creating an administrative nightmare for the IRS to reconcile underreporting and recover the missing revenue.

However, experts generally believe that spousal support awards, whether through settlement or ordered by a court, are likely to get a lot less generous if this law is enacted. The Ohio spousal support statute specifically requires a court consider the tax implications when determining an appropriate award. Under the proposed schema, a higher amount of any award will get allocated to taxes, and the money simply won’t go as far. How could awards not be impacted?

Doubtless, in settlement negotiations prospective payers will be making the same assessments. Certainly, a higher monthly support amount is more doable and palatable when the payer knows that some relief will come at tax time.

The current proposal seems to suggest that the change would take place for spousal support awards that start after 2017. It remains to be seen if this provision will see the light of day as actual law. In the meantime, practitioners are collectively holding their breath, anticipating an onslaught of requests to modify existing awards if this proposal sticks.

This article originally appeared as a column for the Cleveland Jewish News.

Andrew Zashin2023-11-10T13:38:12-05:00November 21st, 2017|Spousal Support, Tax Planning|

Tax reforms may pose significant hit to charitable giving

By Andrew Zashin*

This article originally appeared as a column for the Cleveland Jewish News.

Every level of government, from the smallest municipality to the federal government, must tackle tax issues. Politicians, pundits and, of course, prospective tax payers will each weigh in, offering separate opinions as to how best to generate the funds the government needs to operate without breaking the back of the average citizen or losing his vote.

President Donald Trump recently released a skeleton outline of his tax plan. The plan proposes sweeping overhauls that, among other things, aims to significantly increase the standard deduction to $12,000 for a single filer and to $24,000 for a jointly-filing married couple. And, for many middle-class Americans, higher standard deductions do away with the complicated process of itemizing deductions for things like qualifying medical expenses, state and local taxes paid, and charitable contributions.

A simplified tax filing process is certainly something taxpayers could get behind. But charitable organizations have some concern as to what impact this plan may have on their bottom lines. Certainly, people donate for benevolent reasons; they do it because they genuinely want to see a cause succeed and because it feels good to do good in the world.

But charitable organizations are well aware that people also give because they derive some direct benefit from it. At certain levels of giving, name recognition may be involved. Perhaps the giver will see their name in a printed program or on an inscribed plaque or brick, or even on the entrance to a hospital wing or theater. Maybe they benefit by having a cleaner home after donating unwanted clothing or household goods.

Or, maybe they get a tax write-off. And, it is the last reason that is causing some concern; if the average taxpayer will no longer get the same tax benefit for his charitable contributions, will he still give at the same level? Nonprofit leaders certainly don’t think so, and experts are estimating that overall giving could decrease by as much as $13 billion to $26 billion per year.

Support is increasing for the concept of a universal charitable deduction, and one congressperson, U.S. Rep. Mark Walker, R-N.C., has introduced the Universal Charitable Giving Act, which proposes to offer an incentive for lower and middle income families to keep or start giving, by allowing them to deduct their charitable donations in an amount of up to one-third of the value of the standard deduction, without itemizing.

Clearly, it is far too soon to know if any of these tax changes may come to fruition or in what form. But, it is apparent that the proposed Trump reforms would mean that as many as 95 percent of taxpayers would derive no value from itemizing deductions and, therefore, no additional tax benefit for charitable giving.

The National Council of Nonprofits responded with a statement calling for Congress and charitable nonprofits to “quickly identify relevant data and come to a consensus on how best to improve the universal charitable deduction so that all American taxpayers, not just 5 percent, benefit from the tax incentive for donations designed to make a difference in local communities across the country.”

Andrew Zashin2023-11-10T13:38:12-05:00October 18th, 2017|Charitable Donations, Non-Profit, Tax Breaks, Tax Planning|

Take those tax deductions, but do so carefully

By Andrew Zashin*

This article originally appeared as a column for the Cleveland Jewish News.

Tax day is just around the corner, again. Whether you hire an accountant or prepare your own returns using one of the many available software programs, or even if you do it by hand, if you itemize your deductions you will want to compile a list of your charitable contributions.

In determining whether your contributions will be deductible, the following general principles apply:

The donation must be to a qualified organization. Donations to political organizations and candidates will not be deductible, nor will donations to specific individuals. The Internal Revenue Service has prepared IRS Publication 526, Charitable Contributions, which outlines its rules on how to determine what constitutes a qualified organization. Note that if you are donating by cash or check, the donation must have cleared within the calendar year. If you made your donation late in December, you will want to double-check when it was deducted from your account.
Donations of property are generally deductible at the property’s fair market value. If you are donating smaller value items such canned goods for a food bank, toys for a charity toy drive, or household goods or clothing for a charity resale shop, your estimation of the reasonable fair market value, or a store receipt showing the purchase price, will likely suffice. However if you are donating an asset such as a vehicle, a piece of artwork, or anything else with significant value, you will want to consult with a professional to determine if you will need a certified appraisal of the item and to ensure that your donation will pass muster with the IRS.
If you have received something of value in exchange for your contribution, that value will have to be subtracted from the donation. So if, for example, you pay $500 for a ticket to a charity gala and receive dinner and entertainment worth $100 in return, you will likely be able to write off only $400 of the ticket amount. But if your $500 bid on a silent auction gets you a weekend getaway worth $1,000, you won’t be able to claim any of it because you received an item worth more than what you have paid.
Donations to that work colleague’s walk/5K/jump-rope contest or other such charitable fundraiser are generally deductible. Make sure you get a receipt for your donation; often the organization will permit online donations via credit card, which will simplify your record keeping.
Volunteer efforts are not deductible in terms of time spent, even if you are volunteering services – legal or medical, for example, that you would normally bill for. However, if you have incurred out-of-pocket expenses related to your volunteer work, you may be able to deduct that.

If you are trying to “go it alone” in your tax preparation, you will want to make sure you consult the available literature from the Internal Revenue Service at irs.gov. But if your charitable donations were significant enough to make an appreciable difference in your tax burden, consider enlisting professional assistance to help avoid an audit and to ensure you are taking advantage of all available deductions. And most importantly, document, document, document. Photographs of donated items, canceled checks, receipts and letters of acknowledgement from the charitable organization will help keep you compliant, not only in terms of preparation, but also in terms of substantiating the donation in the event a deduction is ever questioned.

*Andrew Zashin writes about law for the Cleveland Jewish News. He is a co-managing partner with Zashin & Rich, with offices in Cleveland and Columbus.

Andrew Zashin2023-11-10T13:38:13-05:00February 16th, 2017|Charitable Donations, Tax Planning|

Consider every option in year-end tax planning

By Andrew Zashin*

This article originally appeared as a column for the Cleveland Jewish News.

As another calendar year comes to a close, it’s time again for last-minute year-end tax planning. True, there is just over a month left in 2015, but there is still time to take advantage of some smart planning.

Consider upping your retirement contributions to the maximum allowed amount. Annual contribution limits into common plans like 401(k), 403(b), or 457 plans are $18,000 in 2015. Or, if you are over the age of 50, you can make a catch-up contribution of an additional $6,000. For a simple IRA, the limits are $12,500 for anyone below age 50 and $15,500 for those over age 50. And the contribution limits are $5,500 for a traditional or Roth IRA, or $6,500 for those over 50.

Charitable contributions may be made up until the end of the calendar year. If you itemize your deductions, you may generally deduct up to 50 percent of your adjusted gross income, although 20- and 30-percent limits apply in some cases. Contributions of appreciated assets can be particularly beneficial inasmuch as you can generally both write off the appreciated value of the asset while avoiding capital gains on the appreciation – a win-win for both you and the charitable endeavor.

Be sure to make use of any money you set aside in a flex spending account throughout the year. While funds in a health savings account will generally carry over into the next year, funds in a FSA will be lost if not used in time. While the rules on what constitutes a qualified purchase have tightened a bit, items such as bandages, eye care, home diagnostic tools such as blood pressure monitors and thermometers, joint braces, incontinence products, and over-the-counter medications prescribed by a licensed health care professional can all qualify.

If you have a business, you still have the opportunity to time some moves to best help your bottom line. Depending on the nature of your business, you may shift taxable income into 2016 by delaying billing or the provision of goods or services into the new year. Similarly, you can accelerate deductible expenses into 2015 by doing things like upping the business use of a vehicle that doubles as a personal vehicle, or acquiring new equipment and supplies (that you would be purchasing anyway) in 2015.

Last, but certainly not least, make sure you are taking advantage of every available deduction. Do you work from home? Travel for work? Pay interest on student loans? Have a child in day care so you can work? Have medical bills that exceed 10 percent of your adjusted gross income for the year? Pay tuition? The list of available deductions seems endless. Talk to your tax preparer or, at least, do your own research to make sure you have captured all deductions that might apply to your situation.

They say the only certainties in life are death and taxes. But, with a little planning and forethought you can keep a little more of your money in your pocket into 2016.

*Andrew Zashin writes about law for the Cleveland Jewish News. He is a co-managing partner with Zashin & Rich, with offices in Cleveland and Columbus.

Andrew Zashin2023-11-10T13:38:13-05:00November 19th, 2015|Charitable Donations, Retirement Planning, Tax Planning|

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