LAST MINUTE TAX MOVES -COOK YOUR ASSETS

Tax moves to make...

Stated below are a few tax-planning tips to take advantage of:

1.  Consider giving gifts to your children.  You may want to shift income since your children are usually in a lower tax bracket.  However, bear in mind that if your children are under the age of fourteen, they will be subject to the special “kiddie tax” rates.

2.  Don’t forget to donate those old clothes that have been stashed away in your closet, by the end of the year.  Most importantly, don’t forget to get a receipt!  Don’t overlook unusual donation avenues.  Gifting your old computer to your local high school or church and donating your old vehicle to a qualified charity are often missed deductions.

3.  Defer income and accelerate deductions.   Deferring income into the Year 2010, should result in an overall lower tax bill.  You have another year before having to pay tax on these earnings.  

4. Check the values of your stock holdings. Many taxpayers are carrying over into tax year 2010, capital losses.  These capital losses can be used to offset capital gains.  The stock market over the last few months has seen an upward trend of sorts.  Sell a stock at a gain and use the capital loss carry forward to offset the gain. 

5.  If you own a business, the write-off for fixed asset purchases can be accelerated as much as $250,000.00 in the first year.

6.  Don’t forget to pay your real estate taxes by December 31st.

7.  If you make estimated taxes payments to your state, postmark your fourth payment by the December 31st so that it’s deductible this year.