Blog Series: Six Tax Strategies That Could Save You Money!

3.       Failure to Accurately Track Year-to-Year Carry-over Items.

All taxpayers should check to see if they have any capital losses that could possibly offset current capital gains. Excess amounts of unused capital losses can be carried over to the next year’s return. For example, if you have net capital losses in a prior year in excess of a $3,000 annual deduction limit, they can be carried over to your next year’s income tax return. The same thing goes for any charitable contributions and unused business credits that you can’t deduct in a previous year because of limits on such write-offs. While you still need to monitor AMT considerations, don’t let these carry-over’s get lost in the paperwork. They can potentially save you money.