Tax Tips for 2018: Get Organized
Yes, simply getting your life in order now, rather than scrambling at next year’s finish line, is one of the best things you can possibly do to improve your tax situation.
You don’t even need an advanced system. Keep a few file folders that separate things like receipts, documents from your accountant and previous years’ filings. (And consider getting a safe to put them in.)
When it comes to record-keeping, there are a few items you might not realize are important to maintain. A few examples:
- Airbnb: Do you rent out your home? You may be able to deduct expenses, such as cleaning fees, professional photo fees, towels/sheets, advertising fees and food/beverages.
- Home Improvement: If you add a room, a pool or other major addition to your home, save the your receipts. You can add these to the cost basis of your home when you sell it, which will reduce your tax bite.
- Mileage: This deduction for work can really add up. But you must be diligent with your record-keeping (note that mileage is a hot area for audits). The best way to do this is with a mobile app like Intuit Inc.’s (NASDAQ:INTU) QuickBooks Self-Employed or Microsoft Corporation’s (NASDAQ:MSFT) MileIQ.