760-814-1850
    info@1850realty.com

1850 Realty ®1850 Realty ®

Helping You Buy and Sell Real Estate in San Diego

  • Communities
    • Cardiff
    • Carlsbad
    • Del Mar
    • Encinitas
    • Escondido
    • Fallbrook
    • Oceanside
    • Poway
    • Home
    • Ramona
    • Rancho Bernardo
    • Rancho Santa Fe
    • San Marcos
    • Solana Beach
    • Valley Center
    • Vista
  • Services
  • Blog
  • Why 1850?
  • 1850 Realty LFRO

Bigger Tax Return? Pay Less Taxes?

Here we are…the last day of the first month of 2011

One of the biggest things that we all start thinking about this time of year is tax season. I’ve come across some good information & useful tips to share with you on filing your taxes as well as things to consider when filing taxes.

 Hopefully it’ll help get you a bigger return….or at least pay less taxes. Good luck!

 5 Tips for filing taxes in 2011

  1. Start gathering your records  – Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
  2. Be on the lookout – W-2s and 1099s will be coming soon; you’ll need these to file your tax return.
  3. Use Free File – Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at http://www.irs.gov. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return there’s electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.
  4. Review! Review! Review!  Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.
  5. Check the status of your tax refund. Whether you chose direct deposit or asked the IRS to mail you a check, you can check the status of your refund through Where’s My Refund?

Info courtesy of IRS.gov 

 

 

 

 

 

 

7 things to consider when filing taxes

  1. Watch out for FSA limits– Medical flexible spending accounts, or FSAs, are not as flexible in 2011. These workplace plans allow employees to put pretax money into accounts and then use the money to pay for medical expenses not covered by insurance.  But one category that is no longer eligible for reimbursement is over-the-counter medicines. Beginning Jan. 1, you must get a doctor’s prescription to use FSA money to pay for over-the-counter medications. This means you’ll need your doctor’s official, written order that you take nonprescription cold tablets.
  2. Convert to a Roth IRA – Roth IRAs are popular because when the money is withdrawn in retirement, there’s no tax due. These accounts are enjoying a new surge of popularity now that there’s no longer an income limit on who can convert a traditional IRA to a Roth account. This conversion option became available last year and also included the ability to spread any taxes due upon conversion over two subsequent tax years. The tax-deferral opportunity is gone. If you convert a traditional IRA to a Roth IRA in 2011, you’ll have to pay all conversion taxes this tax year. But for some, it still might be worthwhile to convert to a Roth.
  3. Buy a house – The first-time homebuyer credit is no longer available, but owning a home still offers many good tax breaks. Sure, the bipartisan National Commission on Fiscal Responsibility and Reform has suggested that the mortgage interest deduction be eliminated or at least reduced. That won’t happen any time soon. Other home-related costs, such as property taxes and points paid to get a lower home loan interest rate, also are deductible, as is interest on home equity loans up to $100,000. The biggest home-related tax benefit, though, could come when you eventually sell. As long as you live in your home for two of the five years before you sell, you won’t owe taxes on up to $250,000 in profit (or $500,000 for a married couple filing a joint return) from the sale of your principal home. And if you did take advantage of the very first first-time homebuyer credit on your 2008 tax return, remember that when you file your 2010 Form 1040 this year, you’ll have to start paying back that $7,500 tax break.
  4. Give to charity – You don’t have to meet a threshold to deduct your charitable donations. As long as you give to an IRS-qualified organization within the tax year, you usually can claim as an itemized deduction the full amount that you give.
  5. Adjust your withholding – When it comes to payroll withholding, you want to be Goldilocks and get it “just right.” If you overwithhold federal taxes, you’ll get a big refund. That’s nice once a year, but you’ve sacrificed control of your dollars for the other 364 days. If you underwithhold, you’ll end up owing the IRS at filing time. Owing a little isn’t too bad, but a big tax bill could cause you to face penalties for not paying enough throughout the year. It’s easy to change your withholding. Just give your payroll office a new W-4. And to make sure that form will get your withholding as close as possible to your eventual tax liability, you can use Bankrate’s payroll deductions calculator or the IRS’ interactive allowances calculator.
  6. Estimate your AMT exposure – Although Congress annually enacts changes to the income levels for the alternative minimum tax, or AMT, many middle-income taxpayers still find each year that they are subject to this parallel and costly tax. This extra tax calculation, in which many commonly claimed deductions are not allowed, is required if you earn more than a certain threshold income. It was created in 1969 to ensure that wealthier taxpayers pay at least a minimum amount of tax. The main problem with the AMT is that it’s not indexed to inflation, hence the need for yearly legislative action to increase the amount of income exempt from the AMT. But just as problematic is that many deductions allowed under the ordinary tax system — state and local income taxes, real property taxes, miscellaneous deductions and the usual amount of medical expenses — cannot be used to offset the AMT. If you’re in a higher tax bracket and fear that you might end up paying the alternative tax, talk with your tax adviser sooner rather than later to consider ways to limit your AMT exposure.
  7. Start a business – Whether you operate your own business as your main source of income or as a sideline venture, tax laws offer several ways to save. The Small Business Jobs and Credit Act of 2010 increased the Section 179 tax deduction.This provision allows you to deduct qualifying expenditures in the tax year in which they are made rather than depreciate it over several tax years. For 2011, the maximum Section 179 deduction is $500,000. Other popular business tax breaksalso remain in effect. You can write off some of your new business startup costs, as well as many home office expenses if you run your operation from your residence. If your company is a bit bigger and in the manufacturing sector, the domestic production activities deduction could help. It allows you to claim a percentage of your taxable income to help reduce your company’s tax bill. The main requirement is that the manufacturing be based in the United States, but the range of qualifying activities is wide. Details can be found in the instructions for IRS Form 8903, which you’ll file to claim the deduction.

Tips courtesy of BankRate.com 

Posted in: Blog, Buyers, Real Estate in San Diego, San Diego North County Real Estate, Sellers Tagged: Buyer, closing costs, First Time Buyers, first time sellers, North County San Diego, tax credit, taxes

Post navigation

« Home Remodel & Decorating Show
Too buy or not to buy…that is the question »

Favorites

Home Improvement
Open Houses
Things to Do
How to Buy
How to Sell
Honesty Hour Videos

Home Valuation Tool

1850realty

Helping families buy & sell homes in America’s finest city! 🏡🏘☀️ Sign up for our monthly newsletter for things to do in San Diego 😎

San Diego Real Estate Broker
One “newer” product in real estate is a broker One “newer” product in real estate is a brokerage offering a cash bounty to secure a future agreement to list your property. Upwards of 40 years. So far, multiple Attorney Generals have concluded that these agreements are freely entered into, and legally enforceable. Our PSA for today details how these work, and consequences thereof. 1850 Realty is always available for a confidential consultation. Hit the 💙 and Follow button to keep on top of all things real estate in San Diego.
What legacy are you leaving behind? As you roll cl What legacy are you leaving behind? As you roll closer to retirement, you might be asking that question. So...how do you want to be remembered? #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
"Real estate is the basis of wealth." –Theodore "Real estate is the basis of wealth." –Theodore Roosevelt #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Your pension has an end date. Cash flow from real Your pension has an end date. Cash flow from real estate investments doesn’t. Thinking about a rental property? We can help! 🏡 #1850realty #BrokersAreBetter #buyingahome #dreamhome #investmentproperty #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
What is a challenge when selling or buying a home What is a challenge when selling or buying a home in CA? Something neither party anticipated. These can vary from a bit of legwork to something that could completely derail the transaction. A modular home with a lot split prior to occupancy? Sure! Roof truss or stem wall concerns? Check. 1850 Realty is here to help.
Why 60 Years Olds Should Be Increasing Their Real Why 60 Years Olds Should Be Increasing Their Real Estate Portfolio Right Now 🏡⏰ Let’s face it. Sometimes, pensions run dry. It happens to a lot of retired people. But you can protect yourself from that by investing in ‘passive income’ real estate properties. This can give you a stream of cash flow that you can rely on without the fear of coming out of retirement. Chat with me and let’s make sure your retirement doesn’t waver. 💪 #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Coming at you with @ericfarrar1850 explaining proo Coming at you with @ericfarrar1850 explaining proof of funds, as both a buyer and seller. There are many ways you can accomplish this, and stronger is always better. Let us help you craft a strategy to accomplish your real estate goals today!
Instagram post 18236468929145042 Instagram post 18236468929145042
Instagram post 17870746889802178 Instagram post 17870746889802178
A surefire way to maximize your profit in a probat A surefire way to maximize your profit in a probate sale...find the right Realtor to do the job. Simple. DM us for a confidential conversation 📲 #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
🏡Why Experience Pays Off In A Trust & Probate S 🏡Why Experience Pays Off In A Trust & Probate Sale💰Your main mission in a probate sale is to MAXIMIZE the sales price and there are 3 ways to do that. If you need help with this then either DM me or click here to setup a chat 📲 #probatesale #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
"Home is where one starts from."-T. S. Eliot #18 "Home is where one starts from."-T. S. Eliot #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Understand The Difference Between A Traditional Sa Understand The Difference Between A Traditional Sale And A Probate Sale 🏡 ⚖️ If you’re about to go through a probate sale then you need to understand the difference between a traditional sale and a probate sale. If you don’t it could cost you a ton of $$$ and time ⏳ Hire a pro from the get go! #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Real Estate and Your Estate Plan: How Does It Work Real Estate and Your Estate Plan: How Does It Work? 🏡Talking about what happens to your estate after you pass is difficult and emotional. There's a lot to consider. Click the link in the bio for a very informative interview with a leading expert. It could answer a few questions you have. 🧐 #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Happy Thanksgiving 🍁from your friends at @1850r Happy Thanksgiving 🍁from your friends at @1850realty 💛
🏡 How To Choose The Right Trust & Probate Real 🏡 How To Choose The Right Trust & Probate Real Estate Team 🏡 Choosing the wrong team in a Trust & Probate sale can seriously damage the process. If you don’t know what you’re doing with these types of transactions, then don’t wing it. ❌ Find a team who can help you navigate every step of the way. ✅ #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters🔥🔥
Are You Truly Ready to Buy a House? 🏡 Buying yo Are You Truly Ready to Buy a House? 🏡 Buying your first home is a big decision, but it's worth it. 🤔If you're thinking of diving into homeownership, then hit this link for some excellent questions to ask yourself before you start shopping. 📲 https://www.1850realty.com/quizzes/firsttimehomebuyer #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Choose Your Realtor With Care❤️ I’ve said th Choose Your Realtor With Care❤️ I’ve said this before, but a Realtor isn’t just a person who finds you a house or a condo, they are a partner who helps find you a home, so make sure you choose yours with care. 🏡 #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
How To Choose The Right Realtor To Find Your First How To Choose The Right Realtor To Find Your First Home🏡 Half the battle of finding a new home is finding the right Realtor. 🤔 Even if I’m not the right one, here’s a quick rundown on how to go about finding the right Realtor for you. ✅ #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
“Twenty years from now, you will be more disappo “Twenty years from now, you will be more disappointed by the things you didn’t do than by the ones you did do.” — Mark Twain
Load More... Follow on Instagram
760-814-1850
info@1850realty.com

16787 Bernardo Center Drive, Ste 7, San Diego 92128

1850 Realty ® California DRE #01946868                      Carol Farrar DRE #01733808                                         Eric Farrar DRE #01949104
1850 Realty ®
© 2023