A. Normally, it is not having all docu-


mentation they need. When they sell an investment property, not having paper- work, not having their tax information available in an order they can find it. Q. Do people still need to save re-


ceipts since so much goes on credit cards and they can track receipts there? A. I personally do not need a receipt,


but if you should be audited and give the IRS a credit card statement, they want the receipts to go with it. If it is Amazon- .com, they can’t tell if it was purchased for business or was it for their personal use. If you have a business, keep the re- ceipts separate. Q. What are common mistakes you


see small business owners make? A. Basically not keeping their docu-


mentation organized and keeping it sep- arated. It is easier if they separate their business life from personal life, and not intermingle. It makes it easier to go through and compile what are business expenses versus personal expenses. Also, small business owners need to meet with their tax preparer in the middle of


year to do some tax planning, so it gives them time to mitigate, as best they can, any tax liability. You can’t do a lot to low- er your tax burden on April 15, but if you do it Sept. 15, you can maybe purchase the computer system you’re thinking about. Q. Where are some potential deduc-


tions people ignore? A.A lot of people seem to ignore item-


ized deductions. Real estate and personal property taxes they paid. Medical deduc- tions. Mileage. Sometimes it will put them over that hump to where they can deduct medical. Charitable receipts are necessary if they are $250 or more. They forget to get receipt from Goodwill when they drop off a lot of furniture or house- hold goods. They need a receipt. Q. Do you have any suggestions for


organizing information for your taxes, either now or throughout the year to make it easier at tax time? A. Keep a folder on the computer and


keep a running file throughout the year of items they will need. Keep a medical receipt file, have charitable contribu- tions in one spot, whether it is hard docu-


For more information on The Callen Ac- counting Group, visit: http://www.thecalle- naccountinggroup.com


ments or on computer, so they are not scrambling at the end of the year. Q. Is there any way to reduce tax-


able income for 2017? Or is it too late? A. For individuals who have worked


and who have not contributed to IRA, there is still time to contribute, so they have that. A lot of times most things have expired. IRA depends on a number of things, if they are in qualified plan through an employer and have maxed out, it is possible they would not be able to contribute. Something people may not realize is you have to have earned income and even if you are a stay-at-home-mom, you can contribute to an IRA based on your husband’s income. Editor’s Note: This article was written


while the tax bill was still being debated so there may be changes that affect how you file this year.


804 Coley Drive • Mountain Home BB-0000132541 Living Well i January/February 2018 9


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