Time For Year End Tax Planning!

The end of the year is fast approaching. Don't let April 15 be a SURPRISE! It is your last chance to do some tax planning for 2008 that could make a real difference. If you itemize your deductions, it is a good time to clean out your closets/garage/attic and give all your unwanted stuff away to a fine local charity. Needy folks out there could probably use it. Want to increase your sales tax deduction? You can add the sales tax from a purchase of a car, boat, motorcycle, or RV to the standard table amount. I know there are great deals on those items right now, so if you are in the market, you may not want to wait until next year. Also, it is a great time to make a retirement contribution! It may not be too late to bump up your 401k contribution at work, depending on when your employer allows you to make changes. Don't be a procrastinator! Get your house in order now before it is too late.

I know that a lot of folks are sitting tight to see what new tax policies might be implemented next year, but you know the old saying that a bird in hand is worth two in the bush. Who knows what is going to happen so it is best to work with what you've got NOW.

If you have a business, you may want to take advantage of incentives available under the Economic Stimulus Act of 2008. These include 50% bonus depreciation on new equipment and a higher Section 179 limit of $250K. See this IRS release from earlier in the year with all the details.