Holiday shopping is upon us, and we’re all busy trying to find last minute gifts for our loved ones. But what about last minute tax deductions for your Airbnb business?
Taking a moment to look through your finances before the end of the year could be the major catalyst in making hundreds, if not thousands, of dollars in tax savings this year.
So, in the spirit of sharing, we’ve put together a small list of last minute tax deductions that you can claim now before the year is over:
State Tax Payments
Your 4th quarter estimated tax payments is due on January 15, 2016. Pay your state taxes now instead of waiting until January. Otherwise, you’ll have to wait until April 2017 to claim your deduction.
If you made less than $80,000 this year, you can deduct up to $2,500 in student loan interest. It’s important to keep in mind that the deduction only applies to the interest portion of your monthly payments.
Been eye-balling that Mac Book for months? If you’re gonna pull the trigger on upgrading your business equipment, do it before the end of the year. It’s a qualified business expense and you can deduct the full amount right away, according to the IRS Code Section 179!
Do a Costco run and stock up on supplies for your business. Common supplies to stock up on are water bottles, cleaning supplies, first aid kits, and snacks for clients.
If you’re anticipating hiring for assistance early next year, make advance payments to your cleaning maids or accounting professionals. The IRS allows tax deductions for advance payments up to one year.
Looking for extra savings on professional services? Sign up using the invite code YearEnd and prepay for tax services for this upcoming tax season and we’ll give you 20% off** tax preparation.
Looking to get away… for business? Book your travels before the end of year for business trips in 2016. Make sure you keep detailed records of your business trips for tax purposes.
Repairs and Maintenance
Been thinking about fixing that faucet leak in your Airbnb apartment? How about that broken taillight of your business vehicle? Get those repairs done before the end of the year. Don’t wait; you’ll thank us later.
This will make you feel really good. Donating to charity before the end of the year will score you some major tax deductions when itemizing your returns. Why wait until next year to donate when you can reap the tax benefits now?
To find out if your donation is tax deductible, here is a helpful link to the IRS’ list of exempt organizations.
Property Tax Bill
If you own your own property, your state sends you a property tax bill in the mail. Instead of waiting to pay the 2nd installment of your tax bill, pay them now.
Sell Loser Stocks
Review your investment portfolio for stocks that are under-performing and sell them. You are allowed to deduct up to $3,000 in losses this year then take the rest next year.
Rent and Insurance
Make advance payments to your rent, and medical and renter’s insurance. You can take a sizable deductions in 2015 if you prepay them before the end of the year. As long as the benefit does not extend beyond 12 months from when the policy started, you’re allowed to deduct all your expenses today.
That’s it! Some of the deductions here are pretty straight-forward and some are more complex – as expected from the tax code. But don’t stress. If you plan on taking any of these deductions and require assistance, or if you have any specific, or general, tax questions, feel free to contact us at Hello@GetLevee.com for tax guidance and sign up for more tax tips at www.GetLevee.com
Happy Holidays from the Levee Team!
**Discount is valid only for tax prep fees for an original 2015 personal income tax return. This offer is only valid in the U.S. and cannot be combined with any other offer, special promotion or pricing program. Expires 12/31/2015.