Early retirement is an option for many taxpayers. However, before making the decision, you need to be aware of a few facts.
It’s important to understand that the more years of work you put in after the age of 62 (the earliest possible social security retirement age), the more social security benefits you’ll have to look forward to. Retiring at the age of 62 means that your benefits will be about 25 percent lower than they would be if you waited until you reached full retirement age.
If you still decide to go ahead with retirement at the age of 62, be sure to apply for your benefits about three months before the date you’d like them to start. You’ll apply online at www.ssa.gov, by phone at 1.800.325.0778 or in person at your local social security office. During the application process, you’ll need some or all
of the documents below:
Note: All documents must be original documents or copies certified by the issuing office. You can mail or bring these documents to your local social security office.
Because your age of retirement ultimately impacts the amount of social security benefits that you can expect to receive, it’s absolutely crucial for you to consult me about the options you have available. The social security website also contains countless resources to help you make the most informed decision possible.
If you’re starting a business, one of the most important decisions you’ll make is choosing what type of entity to operate as. Be sure to weigh your options, because an informed decision at the beginning can save you a great deal of time and expense later. Following is a list of the different entities.
Since understanding the tax consequences and operating procedures under each form of organization is vital to your success as a business owner, please turn to me for information regarding entity considerations for your specific situation.
Investing in rental property can be a smart financial move, but when it comes to your federal tax responsibilities, it’s important to be aware of what is considered rental income and the associated expenses that can be deducted from your rental income.
What’s considered rental income?
Anything received as rent must be reported as part of your gross income for the year you received the payments. Besides rent payments received from tenants, other rental income includes advance rent, security deposits, payment for breaking a lease, expenses paid by a tenant, property or services received as rent and payments received under a lease with an option to buy agreement.
What are your eligible deductions?
You may deduct mortgage interest, property tax, operating expenses, depreciation and repairs. However, you cannot deduct the cost of improvements (i.e., anything that adds to the value of your property).
What records should you keep?
Keeping good records of rent, rental repairs and travel expenses incurred for rental property is essential to tracking deductions, preparing tax returns and supporting items reported on the returns. It’s also important to keep documentary evidence, such as receipts, canceled checks or bills to help substantiate certain elements of expenses so you can deduct them.