October 3, 2014 Fact of the Day: How to Reduce Your Tax Bill?
What can you do to reduce your tax bill? The most popular strategy used by a majority of Affluent Investors, 60 percent, was to donate to charity. If that doesn't work, another 18 percent chose to sell securities that incurred a large loss. With the market reaching all-time highs, it's difficult to sell securities that are suffering from a loss. They still exist in some portfolios, but charitable deductions are always a feel good. But unless you can succeed the standard deduction, which is difficult to do these days, you aren't going to feel that benefit from donating to a charity. Another way to reduce your tax bill is to look at some of the investments that you are in. Tax-free municipal bonds are another way that we see wealthy investors reducing their tax bills. If you want some assistance on reducing your taxes talk to an advisor. Check out our Best Financial Advisors service for help.