8 LGBT Friendly Tax Tips From The Tax Lady Roni Deutch
ByRoni Lynn Deutch
Economy RSS Feed
Mortgages
When it comes to mortgages, the best way to save money on your taxes is to plan in advance which person should take the mortgage out. If you are making $45,000 a year and your partner is making $150,000, it makes more sense for your partner to take out the mortgage. This is because the higher income-earning partner can then claim the mortgage interest deduction over the years, and save more due to being in a higher tax bracket.
LGBT Friendly Help
Ask friends, family, and community members if they know of a tax professional that specializes in LGBT taxes. When it comes to taxes for unmarried couples, you can use all the advice you can get! Most tax professionals will be able to help you to some extent, but having a specialist in your area ensures you are doing all you can to make your taxes as low as possible. It also improves your chances of taking advantage of any benefit you do get.
Gift Tax Exclusion
A married couple has the great benefit of being able to give gifts to each other without having to pay gift or estate taxes. Unfortunately, couples within the LGBT community cannot do the same. There is however, the annual gift tax exclusion, which when used properly, can make up for some of this injustice. The annual gift tax exclusion allows you to gift $11,000 worth of assets without paying taxes on them.
Charity Contributions
Charitable contributions can greatly help you reduce your tax liability. Much like the mortgage interest, you are going to want the partner with the highest income making your charitable contributions—and getting to claim the resulting deduction.
Be Prepared for Anything
When living with a partner that you cannot legally marry, it is important that you are both vigilante when it comes to your finances. No one wants to think it, but if your relationship ends, you are not protected the same way as a married couple is for purposes of dividing assets. If there is no agreement governing the relationship, asset ownership is pretty much going to come down to who bought or funded what. This may not seem fair, as you may have made purchases based upon who benefited most, taxes-wise. When you begin building up many valuable assets, hiring a lawyer to draw up documents is smart. Consider entering a cohabitation agreement to govern your finances during the relationship and providing the framework for splitting assets if your relationship goes sour.
Asset Shifting
You should also consider moving assets between you and your spouse to save on interest. Since you have the lower income ($45,000), you will want to shift more income-earning assets towards yourself. This way, you will be taxed at a lower rate on the income earned than your partner ($150,000) would. The ability to asset shift is actually a huge benefit when compared to married couples, who cannot asset shift if filing jointly.
Inheritance Taxes
If you and your partner are registered civil partners and your partner passes away, you do not have to pay inheritance taxes at all. However, if your state does not recognize registered civil partners, your partner may, in fact, be subject to estate taxes before the bequest.
Separate Accounts
Separate accounts will simplify financial management for you and your partner. You may also consider three accounts—one account for yourself, one for your partner, and one joint account. Use your separate accounts to pay individual bills and taxes from. Also, use the separate accounts to deposit your income into. Then, each of you can fund the joint account to pay shared expenses (e.g. groceries, trips, etc.).
The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced IRS tax attorney who will fight the IRS on your behalf.
Related Articles, Information, Products And Links
Related Articles on Economy
- Technological and Institutional Innovation
- Realtors! Save Gas While You Drive
- Common Scams Used to Reduce your Tax Liability
- 8 Popular Franchise Trends in the Year 2009
- How to Keep your Business Thriving in a Recession
- Popular Causes Of Irs Tax Debts
- Popular Irs Credits And Deductions You Might Be Missing
- Helpful Hints For An Irs Audit
- Economic Blues
- Executive Coaching
- Fast Loan Up To $1500
- Planning A Successful Event
- Protect Your Savings From Their Biggest Threat, You!
- Renewable Energy The Reliable Future Resource
- The Specifics Of President Obama’s Plan - Loan Modification News
- Economic Slowdown
Latest Articles on Economy
-
Economic Slowdown
Due to the uncertain environment and bank's reluctance to lend at a favorable rate (coupled with the fact that raising equity is almost impossible due to equity meltdown), the retailers find themselves cash-strapped.Forget about any expansion, they are having hard time even in arranging for the working capital.... -
The Specifics Of President Obama’s Plan - Loan Modification News
President Obama’s historic presidency began in the midst of possibly the worst financial crisis since the Great Depression. The housing and real estate markets seemingly jumped off of a cliff, taking with it the financial stability of every other industry. Obama passed sweeping legislation to help homeowners make payments and deal with the financial crisis while staying in their homes.... -
Renewable Energy The Reliable Future Resource
Sunergy LLC - Renewable energy finance company. Get information, advice and finance tips on wind power, solar power and other renewable energy resources.Sunergy LLC - Renewable energy finance company. Get information, advice and finance tips on wind power, solar power and other renewable energy resources.... -
Protect Your Savings From Their Biggest Threat, You!
Let’s say you want to keep the kids out of the cookie jar. Do you lecture them on the importance of a well-rounded diet and describe for them how they need to work on their self-control? Well, you could do that, and once that failed you’d probably learn to just put the cookie jar on the top shelf, out of reach of those tiny grasping fingers.... -
Planning A Successful Event
Planning a Successful Event - If you are looking to plan an event, then you may want to leave the event planning to a professional production company. Regardless of the size or type of event you are looking to plan, there are many advantages to hiring a professional production company over doing the process yourself.... -
Fast Loan Up To $1500
Fast loans are for people who need an unsecure, short-term loan. If you are short of cash between paydays, have unexpected expenses or emergencies, you can get a payday advance to help you out. Customers typically need cash advance loans because of surprises such as car repairs or medical bills.... -
Executive Coaching
Executive Coaching is widely recognised as a service that delivers a high return on investment, whilst at the same time helping talented people to achieve personal and professional goals at a faster rate. Directors and managers will often embrace executive coaching as it provides a refreshing, self-empowering and motivational experience, beyond traditional forms of learning and training.... -
Economic Blues
Psychology plays a major part in economic instability, and the current recession is no exception. Many economists believe that to understand the economy .People have a difficult time dealing with uncertainty. They need to feel they have control over their lives and their financial futures.... -
Helpful Hints For An Irs Audit
This article is about 10 helpful hints that can guide you to victory over the IRS. This paper can help you with the do and donts of an IRS audit. After reading this document you should have enough knowledge to take on that fearful audit you have always hated.... -
Popular Irs Credits And Deductions You Might Be Missing
When it comes time to prepare your tax returns, there are so many credits and deductions to consider that it can be easy to forget a few. To quickly solve this problem, you could hire a tax professional, but even so, it is always a good idea to know exactly what you qualify for....
