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.
As the revenue does not update the property price at market value one of the gaps to increase the cost of acquisition is to add expenses for improvements and reforms. The spending can be incorporated with reform, construction, expansion and minor works, such as painting and repairs to floors, walls and plumbing. Expenses for furniture, for example, may not be included. All expenses must be capable of substantiation by means of receipts and invoices with due identification of vendors or service providers. Your Tax Refund will definitely get better if you do this.
If you have made some reform in the past but not declared, it is possible to rectifying the tax statement, changing the values in all subsequent years. Recalling that can only be rectified the statements of the last five years, usually.
2) Add the property value and interest expenses brokerage
You can also increase the cost of buying property with the additional expenses involved in financing, such as brokerage (if paid by the buyer) and expenses. If you need to know more you can also checkout our this site here. At the time of sale, you can also deduct the amount received the brokerage, if the value exit the seller pocket. This is another awesome way to maximize your gains when it is time for Tax Refunds.
3) Get rid of the fees charged in investments
The taxpayer may also add expenses with brokerage fees and charges to the cost of acquisition of assets such as stocks, mutual funds with shares traded on stock exchanges and government securities. Thus, if any liquid or earned income, to increase the value of the purchase, the tax due will be lower.
4.) Wife and husband: separate tax refund papers
By declaring earnings together, the taxable income of the spouses is added, and your chances of jumping to a wider range of tax increase. It is always best to make a statement individually.
So declaring together is only beneficial when one spouse has little or no taxable income, so that their inclusion in the declaration does not change the tax rate to be paid. In the end if you need to know extra click this link:https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/5-Hidden-Ways-to-Boost-Your-Tax-Refund/INF22336.html here. Usually this happens when one spouse is income exempt and many deductible expenses, as in the case of one of the two does not have a steady job and have high medical expenses. This is another great tactic to save cash and get better tax refunds.