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TAX TIPS for 2008
Once the new year starts there is little you can do to change your taxes for
last year so instead you need to focus on what to do to save on taxes for the
current year.
- Offset stock losses against short-term stock gains. By selling your
losers and winners at the same time you will avoid paying taxes on the gains.
Furthermore you can buy back the stocks at the depressed prices after 30 days
so that when the stock does increase you can take advantage of the lower
long-term capital gains rates.
- Definitely use timing. Consider whether you will be making less
money next year and therefore be in a lower tax bracket. If so, you
should put off IRA distributions until next year, pay your R/E taxes early, pay your
January mortgage payment early, bunch up your medical and itemized deductions in the
current year or take other steps to take advantage of the dropping tax rates.
Of course if the opposite is true then you should postpone your expenses and
accelerate recognizing your income.
- If you are in the top tax bracket, take advantage of tax shelters to defer taxes until
years when rates will be lower.
Please note that this site is for informational purposes
only, users should seek advice from competent legal or accounting professionals before
making specific decisions.
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