_{Presented by Astra Properties LLC}
Last Minute Game Plan to Lower Tax Bill Before The New Year
_{By Nicholas Burrus · 12/22/23
Thanks for tuning in to todays read! Read time for today is roughly 9 mins.}

Top of the morning 🌄 

We're counting down the last days of 2023, and you know what that means…

It's tax season. 

It's the time of the year to balance your books and work with your CPA to file your tax documents. 

It's not fun unless you're Uncle Sam, but hey, it's part of the process!

Now here's the good news: there are ways to cut down your tax bill!

Legally, of course

of course, right? 

And that's what we'll discuss today and more.

Full disclosures, we are NOT giving tax advice or recommendations. These are ideas and strategies that us at Astra Properties LLC look into. Do you own due diligence before making any decisions 

Your Last-Minute Game Plan to Lower Tax Bill This Season 🤑 

Uncle Sam approved - we promise!

Taxes go around like clockwork. Gotta write that check for the IRS!

Whether you're an investor or an independent contractor, there are ways to save money on your tax liability and boost your cash flow.

Pay taxable income next year

The simplest way to cut your tax bill is to delay any pending income this year to next year.

This will reduce your current year's taxable income and delay paying taxes. 

• For workers with year-end bonuses or commissions, ask your company to defer the payment until January. 

• For freelancers, wait to send the invoice until 2024 to pay less taxes. 

• Investors considering buying stocks or bonds should hold off the trade until the first few days of 2024 to boost capital gains.

Time your deductions in the current year

Don't wait until the following year to pay expenses like property tax.

You'll pay less tax by increasing your deductions before 2023 ends. If you list specific fees on your tax return, adding more deductions can cut the amount of income that gets taxed. 

• If you are a homeowner, paying your January 2024 mortgage or first-quarter 2024 property tax before the end of 2023 will increase the deductible home loan interest. 

• For investors, claim charitable contributions as a tax deduction. Keep the receipts for any donated goods or services. Usually, deductions from philanthropic contributions are limited to 60% of the adjusted gross income (AGI).

This strategy works best if the extra deductions bring your total above the standard deduction amount, which is $13,850 for single filers and $27,700 for joint filers.

Donate to charity 👐 

A good deed will lower your tax bill!

Increasing your donations by the year's end will boost your itemized deductions and reduce your taxable income.

• Whatever you give away to charity, keep the receipts. These will come in handy once you claim charitable contributions as a tax deduction.

• For seniors 70½ or older with traditional IRAs, use a qualified charitable distribution (QCD) to donate up to $100,000 to one or more charitable institutions. The donated amount can cover the taxpayer's required minimum distribution (RMD) and avoid incurring more taxable income.

Charitable contributions don't even have to be in cash. It can be a form of service or goods. 

Don’t expect to go from paying 100k to 50k because of your good deeds 😭 

Make losses work for you

Got underperforming investments?

Cut your losses and sell them. If you want

You'll earn tax benefits and offset capital gains by selling dud assets. 

This strategy is a win-win if you've always wanted to get rid of assets that only led to losses in the first place. 

If an investment's losses exceed your gains, you can lower your taxable income by up to $1,500 if you are married or $3000. If the net capital loss exceeds this amount, the additional losses will be carried over to later tax years.

Get deductions from business expenses

Business expenses are tax-deductible!

Charges incurred in a typical course of building and running a business can be used to cut your tax bill, including:

• Home office expenses

• Business Insurance

• Business travel

• Vehicle expenses

• Business loan interest

• Qualified business income

Track these expenses to increase your deductions, no matter how big or small your company is.

Bundle deductions in the current year

Many tax-deductible expenses must be paid before December 31 to qualify for the current year's tax return.

Bundling as many of these expenses as possible will itemize deductions and save more on your tax bill.

If you can pay your property tax early, for example, add it to other tax-deductible expenses to reduce the total tax amount.

Don’t spend a fortune looking for the perfect tenants 🧑‍🤝‍🧑 

… there are free ways to do it!

Filling vacancies in your rental properties doesn’t mean going all out on promotions. Next time you need to find tenants, try these:

Look into your own network

Ask for referrals from people you trust, like your current tenants and friends.

Nothing beats word-of-mouth marketing in renting residential and commercial spaces - it’s the oldest trick in the book.

It's easier to accept referrals from people you have positive experiences with. You know them, they know what you like, and they’ll vouch for potential renters.

Sweetening the deal by offering rewards, like a gift card or a rental incentive, will motivate current tenants to find potential renters.

Promote on Google

Google MyBusiness lists rental businesses of all sizes. Just create your own listing.

Just to make sure your listing has a strong presence online, fill your listing with:

• Exact address

• Business hours

• Phone number

• Business description

• Reviews (ask existing tenants for reviews 👌 )

• Promote on social media

Now every time someone googles a rental in your local area, your listing will appear at the top of the searches.

Promote on social media 💥 

Instagram and Facebook are the best places to promote vacancies. Everyone’s on social media, so you can get a lot of eyes on your listings. Just remember:

• Take great pictures

• Use hashtags to widen your reach on the platform

• Keep the text short and engaging

• Include details like number of bedrooms, bathrooms, square footage, etc.

• Add the address; many users filter their search by address

Facebook has its own online marketplace. The marketplace is also tied to FB messenger, so answering questions from prospective renters is convenient.

Create virtual tours

Showing off a couple of great images is great, but you can step up your advertising with a virtual tour.

Use your mobile phone to create a video of the space.

Talk about the specifics of the space in the video, like the number of rooms, square footage, location, etc. After recording, get a free app to create the virtual tour.

Host an open house

If you’re into face-to-face interaction, try hosting an open house for prospective renters.

You can meet the renters in person, get to know them better, and choose which one makes the best fit.

On the flip side, the prospective renters will feel more competitive during an open house, so vacancies will be filled in no time.

Post on local bulletin

This is an oldie but still a goodie - many people are still checking out local bulletin boards.

Post a flyer or two on bulletin boards at places that get a lot of foot traffic - supermarkets, community centers, local colleges, etc.

Make your flyers stand out. A pop of color, a great picture, or some variation in shapes will go a long way when attracting attention on bulletin boards.

💫 What Else is Poppin? 💫 

Tesla's humanoid robot is looking more human than ever 🤖 

Meet the new and improved Optimus - he can poach an egg and dance to house music.

Tesla Inc. recently introduced the newest version of its humanoid robot, Optimus Gen 2.

Unlike its previous iteration, Optimus Gen 2 walks 30% faster and makes unnervingly fluid movements. It is lighter, faster, slimmer, and more human-like than ever.

Holy Skynet!

In the video demonstration, Optimus Gen 2 performs delicate tasks with its tactile-sensing fingers. It’s also walking and dancing to house music while surrounded by a fleet of Cybertrucks.

The bipedal autonomous humanoid was developed to make physical work a choice. The goal is to use the bot to take over unsafe or boring tasks.

In the future, Optimus will automate physical human labor and supercharge manufacturing processes.

Catch the latest episode of the AstraCAST podcast!

Have you subbed to our podcast yet?

You can catch me and Marcos on YouTube, and soon Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.

Don’t be shy, check us out here!