There are Strategies Beyond Deductions for Tax Savings
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TAX STRATEGY Q&A
It’s that time of year again — tax time! Besides working with a tax specialist to see how far you can maximize your deductions, there are other strategies that can save you money, if you plan ahead. The key is being aware of them and consulting with the right professional.
Q: Should I contribute to an HSA account?
A: If you’re enrolled in a high-deductible health plan, you may be eligible to establish a Health Savings Account (HSA). HSAs offer a trifecta of tax savings: contributions, growth, and distributions are all tax-free. If your employer offers an HSA plan, there’s a fourth benefit: contributions aren’t subject to Social Security taxes.
HSAs are also an attractive vehicle for retirement and estate-planning, since funds can grow and be used tax-free for future medical expenses.
Consult with a tax adviser to ensure you’re not missing out on the tax advantages of an HSA.
Maria Montie, CPA, MAFF, CVA, MST,
Partner at Shindel RockTax, Business Consulting, Estate & Trust, Litigation Support Services
28100 Cabot Dr., Ste. 102
Novi, MI 48377
Jappaya Law, PLC
Q: How can I reduce my property taxes?
A: Property taxes are based on taxable value. To reduce your taxes, you must demonstrate that your property is worth less than twice the taxable value. Taxable values become “uncapped” for owners of newly acquired property, so they should pay special attention to their assessment.
The residential appeal filing deadline for the Tax Tribunal is July 31, although you must appear before the Board of Review in March (some communities have additional requirements). Commercial property owners can go right to the Tax Tribunal (there’s a May 31 filing deadline). The Tax Tribunal has many traps, so it’s best to rely on an experienced property tax attorney.
Jappaya Law, PLC
Shawn Jappaya, Esquire/CPA
Tax Law, Tax Appeals, Commercial & Industrial Property Tax, Residential Property Tax, Estate Planning
7125 Orchard Lake Rd., Ste. 301
West Bloomfield, MI 48322