quote:
Question: In the attempt to have a more accurate deduction, should I raise my deductions to 2? I would like to have as much of my paycheck every period while not owing additional taxes on Tax Day.

No. Rental real estate is a great place for deductions - you don't even know the scope of your increased tax liability yet, and we're already mid year.

Owing ~$1000 isn't the end of the world - in fact, it's ideal. You plan for that by setting it aside in an interest bearing, but liquid account (probably money market, unless you can get a nice rate on a 30-day CD - which is unlikely, short term).

You're an entrepeneur now - don't be afraid of a little tax liability - it is a good thing.

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Posted by Oenophile Brah

The Edge of Sanity

Member since Jan 2013

7544 posts

Posted on 7/30/13 at 1:45 pm to Ace Midnight

quote:
No. Rental real estate is a great place for deductions - you don't even know the scope of your increased tax liability yet, and we're already mid year

Thanks for the response.
I should have clarified. I will probably only have 4 months of rent by years end.

This is primarily in antipation for the next year.

quote:
Owing ~$1000 isn't the end of the world - in fact, it's ideal. You plan for that by setting it aside in an interest bearing, but liquid account (probably money market, unless you can get a nice rate on a 30-day CD - which is unlikely, short term).

Luckily I work for a local bank that offers excellent rates on both MM and short term CDs.

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