tax breaks

Year End Tax Strategies

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The clock is ticking down to the new year. Last chance to book some tax breaks.

According to Jeff Reeves, editor of investorplace.com, there are year end tax strategies you can use to keep some of your money from the tax man. In an article written for USA Today, Reeves suggests 11 strategies.

By example, defer a year end bonus until January, pushing back the tax bill by another year. If self employed defer some your year end income into January. If you have to pay taxes, at least you can defer the event, keeping that money in your pocket a bit longer. Also look at last minute write-offs such as donating to charity. And you can give a gift of money up to $14,000 to a relative as a yearly tax free gift.  read more »

Tax Season

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Tax day has come and gone and this year’s its being followed with a little relief.

Budget cuts and new responsibilities have the IRS busting at the seams and that’s good news for tax payers. Because the agency is stretched so thin it has fewer agents available to audit people. The IRS commissioner says they will keep going after the worst of the bad guys. But he says there are some people that they should catch that they probably won’t be able to.

So how do you know if you’re in the clear? If you report making $40,000 in wages and your employer reports 50; the IRS will catch that. But if you operate a business that deals in cash your chances of getting caught are the lowest they’ve been in years.  read more »

An Across the Board Stimulus Plan

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An attorney friend of mine in San Jose California, Dick Alexander, took this ad out in the Washington Post's National Weekly. He’s apparently willing to spend his own money to help save some of ours. I find his proposal makes a lot of sense. Here it is:

“A simple across-the-board boost to the economy would be to suspend IRS asset depreciation schedules for capital equipment purchases paid with 2009 dollars.

When a business owner buys a capital asset with current dollars it cannot be written off. It must be “depreciated” over a period of years. That makes every owner think twice when making a capital purchase: taxes still need to be paid, but with reduced cash in the till.  read more »