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! 🏡🏘☀️#sandiegorealestate

San Diego Real Estate Broker
May we remember and honor those who have sacrifice May we remember and honor those who have sacrificed for our freedom 🇺🇸
All smiles as we enter the weekend ready to help t All smiles as we enter the weekend ready to help the San Diego area with all of their #RealEstate needs!
ATTN: Seller 🗣️ Here’s a tip you need to re ATTN: Seller 🗣️ Here’s a tip you need to remember when thinking about selling your home! For an in-depth seller analysis and a full market update on home values in your area, contact our team 🙌🏽🏘️
@ericfarrar1850 and @dev_1850realty are out in Car @ericfarrar1850 and @dev_1850realty are out in Carlsbad Village at a home inspection with @ertmanpropertyinspections. This nicely refinished multi unit is under the microscope for Dev’s client, to make sure no stone goes unturned.
Break through all of the media noise and contact y Break through all of the media noise and contact your local 1850 Realty professional! Visit us at 1850realty.com to book an appointment or shoot us a DM 😊
Look, we all know Zillow exists. But a Zestimate i Look, we all know Zillow exists. But a Zestimate is really just their system’s best guess. Do you want to trust an algorithm’s best guess, or a leading expert in the field? Stop messing with what a bot THINKS your home is worth, and find out what your home can actually get from the market. #1850realty #BrokersAreBetter #buyingahome #dreamhome #firsttimehomebuyer #homeowner #homeownership #livinginsandiego #NewHome #northcountysd #realestate #realtor #sandiegorealestate #sandiegorealtor #sellingahome #whoyouhirematters
Our home buying TIP of the DAY! before you star Our home buying TIP of the DAY! before you start, going to open houses, it’s a good idea to have a Mortgage Advisor look at your finances and help you narrow down a #purchase price that fits you and your family.
Later this year, we can’t wait to celebrate this Later this year, we can’t wait to celebrate this milestone with you in person! Cheers to 10 years!
We would like to wish all of the Mom’s and Mothe We would like to wish all of the Mom’s and Mother figures a very #HappyMothersDay 💜
Keep these 4️⃣ things in mind when deciding to Keep these 4️⃣ things in mind when deciding to rent vs. buy and contact our team to explore your options!
“Where good vibes and awesomeness shines day and “Where good vibes and awesomeness shines day and night!” Our brokerage, 1850 Realty, was founded a decade ago in sunny ☀️ #SanDiego and we always love the opportunity to share with others all of the things we love about the area. If you are looking to jump into the housing market, relocate to the SD or simply explore your options, we’ve got you covered! From #RealEstate to really fun things to do, make our team your first call 😎
With access to so many beneficial loan programs, o With access to so many beneficial loan programs, our team wanted to bring you a VA loan highlight!
Home maintenance checklist here! When was the la Home maintenance checklist here! When was the last time you did a quick check on these 5 things? 🤔
💐 Looking for something fun and intentional to 💐 Looking for something fun and intentional to do this Mother’s Day? Come support the mini makers that made us mamas and enjoy all the fun festivities this Mother's Day! Join us for some family yoga followed by LIVE Music, Hay Rides, & Mother’s Day Brunch amongst the beautiful vines and rolling hills of the Historic Rancho Guejito Vineyard 5/14 from 10-1pm! We will be joining forces with The Homeschool Collective to showcase the kidpreneurs in our community! This is a Free Event, but Please RSVP to confirm your attendance for parking and planning purposes. 🏷️ If your child would like to register to be a vendor at The Mini Makers Market, please visit theindiesol.org/explore 🧘‍♀️ In addition to our family friendly event, we will be hosting our monthly women's circle with The House Of Light at the east end of the vineyard. Treat yourself this Mother's Day to a beautiful Sound Journey & Heart Opening Meditation from 10-11:30AM. ✨ Our guest expert is Viianka Jolie. She will be guiding us through a short but powerful energetic untangling session to transform and elevate the relationship of the mother. Please RSVP here: theindiesol.org/explore 🥞 Mother’s Day Brunch Tix can also be purchased via the eventbrite link here: indiesol.org/explore ✨PROUD SPONSOR!✨
Hiring a Real Estate team with experience matters! Hiring a Real Estate team with experience matters! Our ability to guide you through the most impactful steps to get your home sold in record time and with record profits is what 1850 Realty is all about. Take a listen to @carolfarrar as she shares one of the most rewarding Real Estate transactions to date and DM us to discuss your next moves 🙌🏽
For more selling tips visit us online at 1850realt For more selling tips visit us online at 1850realty.com or send us a DM to setup a call!
Why we named our Brokerage 1850 Realty… We cont Why we named our Brokerage 1850 Realty… We continued to be proud of serving those looking to sell, buy or move to San Diego 🏘️😎🫶🏽 #RealEstate
🌍 Happy Earth Day! 🌎 🌍 Happy Earth Day! 🌎
1850 Realty’s advice for anyone thinking about b 1850 Realty’s advice for anyone thinking about buying a home this year! 🏘️ Let’s grab so coffee or schedule a chat! #Buyer #SanDiegoLife #RealEstate #Advice #HomeBuying
Here are seven tax deductions for homeowners! 1️⃣Mortgage Interest 2️⃣Mortgage Points Paid 3️⃣Home Equity Loan Interest 4️⃣Property Tax 5️⃣Home Office Expenses 6️⃣Medically Necessary Home Improvements 7️⃣Home Insurance Premiums Contact your local CPA or financial advisor for more details!
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