By filling out the Declaration of Income Tax by the book, you can earn a higher return or at least reduce the tax to pay. Staying within certain rules of the tax return that are little known, can play in favor of the taxpayer.
Among them are the possibilities to deduct taxes from some incomes, divide the statement of rents with the spouse and include some types of expenses that contribute to reducing the calculation base, which is the sum of all your income, less deductions allowed and the amount used by the government to check on which income tax rate taxpayer fits.
1) Add spending on renovations to the property cost
When selling a property, the taxpayer must pay tax on the capital gain, which is the difference between the purchase value of the asset and the price at which it was sold. Therefore, the smaller the difference between the purchase price and sale, the lower the tax. Continue reading “What To Do To Maximize Your Tax Refund” »