As we near the end of 2009, while there is time to change taxes due in April of 2010, we wanted to give you a few tax savings ideas.
Please consult your tax advisor or call our office before taking any action.
The following are ideas, not recommendations:
- Sell after tax securities that have a loss, if you were planning on making adjustments, do it now (Never let the tax tail, wag the investment dog, realizing more than $3k of net losses most likely will not help much)
- Make sure you are maxing all of your company pre-tax contributions (Those of us 50 years young or more get extra contributions, be sure you are getting the maximum contribution)
- Gifting to charities is often a deductible event, if you plan to gift to your favorite organization, think of gifting stock or securities you have a gain in, and keep that other cash in the bank (You may get the full deduction for the entire amount, in most cases and don’t have to pay capital gains in the process)
- Medical expenses might want to be accelerated. If you have had an expensive medical year, and have a procedure that is set for early next year, you might want to go ahead and complete the procedure this year in order to gain possible tax benefits (Restrictions based on your Income will apply.)
- Possible distribution from your IRA (If you have a low tax income year and have to take funds from our IRA, this may be a good year to take a small distribution that will not dramatically affect your tax rate.)
- Make a gift to a beneficiary (2009 Limit of $13,000 to beneficiaries.)
- Gifting those unwanted items to your favorite charity, keeping your receipts, may help your taxes too.
These are just a few items that we thought might help with our April 2010 “settle up with” Uncle Sam!
JK