What steps can you take to lower your taxes in 2017?

There are several questions you can ask yourself when preparing for tax season. (1) For every personal expense you pay, ask “How can I legally deduct this?”  If unsure, pass it along to your tax preparer. (2) If you own a small business, you should prepare a simple diagram to outline how cash flows between your personal life and business life.  Then ask, “Am I putting every expense that is related to my business on the business side of the diagram?”  This will generally help generate more legal business expenses that you forgot about.  (3) Finally, determine your effective tax rate by dividing you “total tax” by your “total income” as shown on the appropriate lines on your most recent tax return.