Brocker.Org: How to mine last year’s tax return for big savings this year

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If you made money from renting property, the income will be listed on line 17. That line will also reflect any income from trusts.

Landlords should consider whether they need to review their insurance: Is it time to buy an umbrella policy that will provide coverage above and beyond the limits of the homeowners policy?

This is because if a tenant is injured on your property, the legal claim he or she may file could exceed the limits of your liability coverage. In that case, the umbrella policy will make up the shortfall.

Meanwhile, if you’re reporting trust income, consider taking a second look at your estate planning documents and your beneficiary designations on your retirement accounts and life insurance policies.

Bear in mind that trusts only have to produce more than $12,500 in income in order to be taxed at the top rate of 39.6 percent — a number that will surely grab your attention as you take a second look at your 1040.

“Make sure your trusts and wills are updated,” Watts said. “That means you need to have a conversation around beneficiary review.”

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