Anchin Experts Suggest Ways to Save Taxes

Photo by Ken Teegardin.
Photo by Ken Teegardin.

Many taxpayers collect a refund on the taxes they paid during the previous year, but according to some experts, their refunds could be even bigger if they only knew about a whole host of deductions they are eligible for.

Anchin, Block & Anchin CPA Richard Baum explained that anyone who relocated due to a job switch is entitled to take the moving expenses as a deduction. All that is required is that the move be 50 miles or more away from their previous residence. Baum adds that even in the case of a first job these expenses, including gas and a moving van, are deductible.

“Moving expenses for someone’s first job are deductible,” says Richard Baum, a CPA and tax partner at Anchin, Block, & Anchin, a New York based accounting firm.

What other expenses are taxpayers entitled to deduct? Anchin experts say that half of the self-employment tax which self-employed people must pay is deductible. In addition, health insurance premiums are also deductible for the self-employed. All taxpayers are eligible to deduct the premiums they pay for long-term care insurance.

Anchin, Block & Anchin also remind people that it pays to give. While most people realize that charitable contributions are deductible, they might not be aware that some charity-related expenses are also deductible. One good example is that the ingredients someone purchases to bake a cake for a bake sale to raise money for a cause are deductible, too. You can also deduct the mileage from the trip to a fund-raising event.

Richard Baum of Anchin adds that anyone who has an investment portfolio and wants to give to a charity should rather give appreciated stock instead of writing a check.

“Give that stock away in kind, get a tax deduction for the higher value, and never pay a capital gains tax,” Anchin’s Baum explains.

James

James

James Allenby is the editor of Gowanus Lounge, bringing to his position a vast background on New York, and especially Brooklyn history, culture and lifestyle. Born and bred in the heart of "the County of Kings" James Allenby knows what it means to be a Brooklynite, and imparts this meaning at all times to his readers. Contact James at info(at)gowanuslounge.com.