As the year is almost three quarters over I am thinking ahead to year end.
I know, the very thought that makes some people sad but I like to be prepared for what is coming. I cherish your end with all of the holiday celebrations & anticipation of the future but I also dreaded because I know that it will bring with it a up-to-date tax season! Once a year & celebrations are complete more than 2 people start trying to organize their lives & prepare for add event. As an accountant, this is the busiest time of year for me so I try to get my own personal finances in order long before the end of the year. Another reason I do this is because I want to know what I have done in the up-to-date year that may be tax deductible. One question I’m asked frequently is about the deductions that can be taken for replacing peoples items in their homes. Each year brings a different set of rules & regulations with regards to this & this year there was a major one that more than 2 people may not know about. Over the past numerous years, replacing your Heating & Air Conditioning system with a newer more efficient one has been a tax deductible purchase, however for the up-to-date year the only system that has any sort of tax deduction is a geothermal Heating & Air Conditioning system. This comes as a shock to more than 2 homeowners because they are counting on this currency & when they learned that they installed a system that does not qualify they are normally frustrated. I simply have to tell them that I do not write the rules & they genuinely should have looked into it prior to investing.