Are you concerned about issues that have come up in the last year, and how they will affect your taxes?  Now is an ideal time to review your tax situation and evaluate strategies that may help minimize your tax bill.

We’d like to offer you some quick tips to help you with your year-end strategy.

TIP1:
Deduction management
Consider “bunching” deductible expenses into one year or the other.  Usually this type of planning involves paying your state estimated taxes or real estate taxes in one year or the other. 

TIP 2:
Portfolio timing
The end of the year is an ideal time to examine your investments to take the steps necessary to minimize your capital gains income and maximize the benefit of any capital losses.  Long-term capital losses can be used to fully offset long-term capital gains.  Losses taken in excess of gains can also be used to offset up to $3,000 in ordinary income. 
These are just a few of the tax planning opportunities available to individuals.  There are many more our office can recommend to you, depending on your situation:
•    Retirement planning- Year-end planning involved maximizing annual contributions to your retirement plan accounts.
•    Kiddie tax –Due to a change in tax law, in 2008, the applicable age rises and the kiddie tax will apply to a child under the age of 19 and full-time students under the age of 24.  In light of this, parents should consider selling appreciated stock belonging to their children now, especially if they are going to be in the 19 to 24 year-old category next year.
Our office can help you with these and many other tax saving and tax deferring opportunities.  Please call us or email us and we can provide further information about the tips listed above and many others. 

**”Please don’t forget to schedule your tax appointment in January or February and get your return done early