Tax Tip Thursday

Know Your 2024 Taxes Early!

Today we will be talking about estimating your tax bill for 2024. This will be of particular interest to people that are self-employed, own a corporation, or have rental properties.

We all seem to be forever a slave to taxes.

Since Covid, many people have started businesses and it seems EVERYONE now has an Airbnb. I have already had many people approach me and ask what their tax bill is going to be next year.

How To Estimate Taxes

I am sure you have heard the expression, “Plan for the worst, hope for the best.” It applies! I don’t know about you, but if I have a big tax bill coming, I would prefer to know about it 6 or 8 months ahead of time so I can do something about it! That is preparing for the worst.

So here is what you need to do.

The process will be the same regardless of what situation you are in.

  1. Get organized (yes back to that again) — i.e., capture all the financial information that will impact the outcome
  2. Determine where you are today
    1. How much did you make to date – this includes salary, wages, revenues, dividends, bonuses, withdrawals from your business, etc., any income you have received.
    2. What deductions do you have – business, rental property, home office, automobile, etc….
    3. How much tax have you paid to date
  3. Take some time and estimate your earnings/income for the balance of the year
  4. Put it all together
  5. Prepare a high-level proforma tax return.

It’s Easier with Help

There are lots of variables and it is NOT going to be straightforward, so take your time or come see us at The Mad Accountant! We have had amazing success with many clients the last few years!

To that end, starting in mid July, we will be offering a mid-year tax review to estimate your 2024 taxes that will be payable in April.

There will be 3 packages, available:

  1. Sole Proprietor package
  2. Rental Income Property package
  3. Corporation package

This will be a great opportunity for some people to save yourself some pain. Not only can we estimate your tax bill for you now, but we can possibly provide you with some mitigation strategies to change the outcome. But you have to start early.

Do yourself a favour and make a move on this while you still have time. Make an appointment!

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.