(607NewsNow) — As June rolls in, it’s a great time to take stock of your financial situation and make any necessary adjustments before the second half of the year.

Conducting a mid-year tax check-in can help you avoid last-minute scrambling come tax season and ensure that you’re taking full advantage of the available tax-saving opportunities. This month, we’re focusing on real estate, renovations, and home-related expenses that can impact your tax strategy.

Renovating and Cleaning for Tax Benefits

If you’re planning renovations or a thorough cleaning of your home, don’t overlook the potential tax benefits. Many home improvements can be deductible, especially if they increase your home’s value or adapt it for medical needs. Additionally, if you’re getting ready to sell, expenses related to home preparation—like cleaning, repairs, and renovations—can often be deducted from your capital gains tax when you sell your property. Keep detailed records of these expenses, as they can significantly affect your tax situation.

Buying a Home: What You Need to Know

If you’re considering buying a home this year, there are several tax implications to keep in mind. Homeownership comes with various tax benefits, including the mortgage interest deduction and property tax deductions. However, it’s essential to check your withholding status, especially if your financial situation has changed. Adjusting your tax withholdings can help you manage your cash flow better and avoid unexpected tax bills.

Review Your Income and Withholdings

During this mid-year check-in, assess whether you’re on track with your tax payments. If your income has changed significantly since the start of the year, you may need to adjust your tax withholdings or estimated payments. Failing to do so could result in underpayment penalties or a hefty tax bill next April. If you’re self-employed or have income from freelance work, rental properties, or investments, now is a good time to double-check your estimated tax payments.

Maximize Retirement Contributions

June is also a good time to evaluate your progress with retirement contributions. Have you been contributing regularly to your 401(k) or IRA? If not, now’s a great moment to start catching up. Contributing to retirement accounts not only prepares you for the future but can also lower your taxable income in the present.

Take Stock of Deductions and Credits

As you review your financial situation, take a moment to look for any deductions or credits you might qualify for. This could include deductions for student loan interest, medical expenses, or charitable donations. Businesses should take the time to evaluate potential deductions as well.

Plan for the Second Half of the Year

The second half of the year will come faster than you think, and it’s important to plan ahead. If you’re a business owner, consider year-end strategies, such as making key investments or updating payroll details. For individuals, consider any big financial moves coming up, such as selling a property or making a large charitable donation.

Stay Proactive with Your Tax Strategy

No matter your situation, staying proactive with your tax strategy is crucial. A mid-year check-in gives you the opportunity to adjust your plans and maximize your tax savings before it’s too late. By working with a tax professional, you can get personalized advice on how to make the most of the remaining months in the year.

For a more personalized tax consultation, reach out today to Sprague & Jackson. You can give us a call or visit www.sprjac.com for more information!