Make the Most of New Tax Incentives with Year-End Planning

The end of the year has historically been the time for tax planning and making strategic year-end adjustments to reduce your tax bite.  2008 adds a whole new meaning to year-end tax planning.  Because of the downturn in the economy, falling home prices, failing financial institutions and the huge losses on Wall Street, Congress has provided a number of tax incentives in an effort to get the economy back on track.   The following articles include details about the most significant changes and those that require action by year's end.

Year-End Tax Tips and Planning Strategies

Year-End Tax Strategies for Stock Investors

Tax-Free IRA to Charity Distribution Reinstated

First-Time Homebuyer Credit

Summary of Economic Stability Legislation Tax Changes

Almost everyone will benefit in one way or another from at least one of the many tax changes implemented by Congress.  However, taxpayers who have one or more of the following conditions apply to them will probably benefit the most from some year-end tax planning.

• Large investment losses
• Home foreclosed upon or anticipating foreclosure
• Forgiven debt
• Over age 70½ and regularly contributing substantial amounts to charity
• Small business owners
• Disaster losses
• Abnormally high or low incomes for the year
• In the process of or planning for the installation of home energy-efficient or energy-generating improvements
• Substantial business losses
• Considering buying your first home
  
If you would like a year-end tax tune-up or need some multi-year strategizing, we encourage you to call for an appointment soon.  As we get closer to the end of the year, there will be less time to implement strategies that could provide you with significant tax savings on your 2008 return.

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