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Certified Financial Planner Board of Standards Inc. Registration of an investment advisor does not imply a certain level of skill or training. Services offered by Covenant Wealth Advisors, a fee only financial planner and registered investment adviser with offices in Richmond, Va and Williamsburg, Va. If you would like to talk about your personal situation and how to reduce your Virginia income taxes, contact us today. In the case of Virginia, there are many ways to reduce your payment on income taxes this year with exemptions, credits, and deductions. Each state has its own idiosyncrasies when it comes to tax law. See if you are able to reduce the amount of vehicles your family owns. There are taxes and fees but since you do not own the car, you won’t be responsible for the personal property tax. Here are some ways to avoid such a steep price tag.
This is a large tax that can significantly impact your bill this year. According to the Washington Post, the average Virginia resident pays about $960 in personal property taxes for owning their vehicle. While not part of Virginia income taxes per se, Virginia residents pay the most in personal property tax than any other state in America! This is due to the fact that residents are taxed simply for owning a car. To be eligible for tax credits, the easement must qualify as a charitable deduction under the IRS Code and meet additional requirements under the Virginia Land Conservation Incentives Act. Because of the ease of transfer and the attractive discounts, LPCs have become very popular with Virginia taxpayers. It also encourages conservation of Virginia farms and other open spaces. Purchasing credits can provide Virginia tax payers with significant tax savings. As a result, they can sell their credits to Virginia residents who want to purchase the credits at a reduced price. However, sometimes donors don’t want to use all of their tax credits. Typically, landowners make a donation and receive up to a 40% income tax credit for the donation.
These landowners have made charitable donations of land or easements for conservation purposes. The Commonwealth of Virginia allows you or your business to purchase land preservation tax credits (LPCs) from Virginia landowners. They are a great strategy to help reduce income taxes in Virginia. Land preservation tax credits were created to incentivize Virginian’s to preserve raw land.