Your Lake of the Ozarks Mortgage Lender: Time to Start Thinking About Taxes

Friday, January 16, 2015

Time to Start Thinking About Taxes

It's Tax Season and now is the time to start getting your documents in order. You should always consult with your tax professional for the best advice on your individual tax circumstances. However, You can use this overview brought to you by the Mortgage Market Guide to get started.

Look Back to Plan Ahead

Dig out your 2013 tax return for a review of the detailed information you collected last year. There are things in you will need to collect again this year in regards to itemized deductions, business use of home or car and equipment depreciation. For more information on tax preparation, please visit: www.irs.gov.

Gather Documentation

Receipts, invoices, canceled checks, online bill pay or automatic deduction logs, mileage logs and other documents are needed to substantiate deductions. If applicable, you'll need to gather documentation for the following:

Charitable Gifts
Equipment Purchases
Memberships to Professional and Trade Organizations
Mileage for Business
Mileage for Volunteering
Office Supplies
Phone and Date Bills
Subscriptions to Professional and Trade Publications
Utility Bills (for Business Use of Home)

Plan for 2015

To make the gathering process a lot smoother next year, devise a meaningful and easy-to-follow record system. Having one place to keep you records will make it easier next year. However, you'll have to dutifully put invoices, receipts and other documentation in there as it comes in. A file folder or box works fine if it is easily accessible. Electronic scanning and storage also works, but may take more time.

If you deduct mileage expenses, keep a small notebook and pen in your glove compartment or center console. Commit to keeping track of every business-related mile traveled, along with the date and purpose of travel. You could also use a notebook app on your smartphone to keep track of this information digitally. Tallying your mileage at the end of each month rather than waiting until the end, will save you time. Having this system in place will assist you in substantiating expense and deduction claims going forward.

Like any other important documents, you should store all tax-related records in a secure location for at least 5 years in case the IRS asks for further information. As your Lake of the Ozarks mortgage lender, I want to provide you with useful information to help you with your finances. If your in need of a new home loan at the Lake of the Ozarks or are thinking about refinancing, give me a call at 573-746-7211 today!

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