Reduce inheritance taxes by giving gifts!
The inheritance tax is the same thing as the estate tax in the United States, but with a different name depending on the country that you are talking about. The inheritance tax is a tax that is supposed to be levied on the richest people after they die, especially if they have a considerably large estate at that point in time. However, this is not always the case, and in fact, a lot of people find that they are being forced to pay an inheritance tax even though they do not have a particularly large estate. The reason for this is that housing costs continue to increase – and since your house is considered to be one of your assets, it is included in your estate.
The inheritance tax is considered by some people to be a highly unfair tax due to the fact that the people who owned the estate had already paid their taxes before death. However, the inheritance tax is still in effect, and it can cost anywhere between forty and fifty percent of your estate over a certain maximum amount. Depending on where you are, that amount will change. Essentially, anybody who has more than that base amount in their estate will be charged 40-50% of any assets that they owned over that amount.
Reduce Your Tax Payments
Reduce your tax payments by claiming an interest payment deduction.
If you are busy paying off your student loans, the last thing you want to do is to pay interest on the money that you’re about to give right back to the government. Luckily, in a lot of cases you should be able to deduct the amount of interest that you paid on your student loans. Deducting interests on student loans is not very difficult to do as long as you make sure that you meet the requirements for claiming this particular deduction on your taxes.
First of all, you have to have the proper filing status – which in this case means that you can be of any filing status except for if you are married and still filing your taxes separately. There is no explanation given as to why this particular status is exempt, however, this is still important to take note of before you waste your time trying to fill out a deduction that you cannot claim.