Most of these old tips are still sensible...
http://taxmama.com/Articles/taxsmart.html
However, this year, you may want to test your tax
liability before you pre-pay property taxes or
increase your itemized deductions. So many people
are now affected by the Alternative Minimum Tax
limits that increasing your deductions will make
no difference at all. You may as well save them for
next year.
Of course, this year, you may still get that $25,000
deduction for the gas-guzzlers. May I suggest that
you don't rush out to take advantage of that tax
loophole unless you really, really need car like that.
Otherwise, all you're doing is getting short-sighted
tax deduction this year - and saddling yourself with
high car payments and very high operating expenses
(gasoline, insurance, maintenance and incidences of
theft).
This is the last year you get the easier to figure
auto donation. So, if you've got a vehicle sitting
around that you don't want or need - donate it before
December 31st. Just in case there's a big rush on
last-minute vehicle donations, and they may not be
able to pick it up - take it down yourself.
Run the numbers, though. If it looks like you can't
use the deduction - give the car to someone who can
and let them make the donation.
Read the two pages of Business
Tax Savings Tips.
Sure, they're all from 2002...but they're mostly
still good - especially the parts about gathering
your receipts and doing the bookkeeping. You'll be
away from work for a while. If you have a business,
this is probably a quiet time. Use some of it to
get yourself up to date.
I am hearing from a lot of people who've had profits
on the stock market lately. They're shocked, it's
been so long. Hardly anyone remembers what to do
about it. But let me give you a clue. You have all
those old capital losses you're carrying forward.
See how much loss you already have. You may be able
to absorb all of this year's capital gains with
your loss carryforwards. If not, check out the rest
of your portfolio. This is a good time to finally
dump those promising stocks who've lost their promise.
Dumps those bums. If they haven't bounced back since
April of 2000...time to send them away. (spelled
Janus Technology.) (I speak to you as much as to me.)
The TurboTax folks have some tips here.
But...do not roll your IRA's over to ROTHs. Please,
please. I've been getting calls about that. Why ever
would you want to pay tax in advance? Let the money
in your IRAs build up until you retire - and you're
not getting your salary any longer.
Ray Martin ads a
tip about giving gifts.
He reminds you that you may give $11,000 gifts to
anyone, gift-tax-free. Please, remember me...
I must to tell you, most of the other tips columns online
that I've sought out, aren't offering any other brilliant
new insights either.
Best wishes,
Eva Rosenberg, MBA, EA
