End of the Year Tax Tips
It's that time of the year; no, we aren't talking about holiday shopping or gift giving guides...it's time to put those last minute tax strategies into place before the end of the year. Act now and chances are you will have just enough time to implement these money saving tips:
1. Transfer Assets: Have a high income with a stay-at-home spouse? Talk to your accountant about transferring income-producing assets into their name instead of yours. For example, if you currently own investment properties worth $500,000 which produce an income of 5 percent or $25,000 annually you could be hit with a tax bill of up to $12,500 for high income earners. On the other hand, by transferring these to your spouse, it may be possible to save half or more in taxes alone.
2. Buy Now - Sell Later: High net worth individuals may find it beneficial to close on short sale property prior to the end of the year and/or hold of selling until the beginning of 2010 in order to reduce 2009 taxes. Likewise, purchase supplies and materials needed to renovate or sell a property as well as office equipment before the end of the year.
3. Pay Property Taxes & Insurance Early: Strategically time the payment of property taxes and insurance to get maximum impact; most locations allow property taxes to be paid between November and April...by delaying payment or paying early, it is often possible to show two payments in one year thereby offsetting a high income year. Just remember, should you exercise this option you will not have any deduction the following year. However, it's a great way to help reduce high income years for short sale investors that have several properties under contract.
4. Make Contributions: Don't forget to make pension contributions prior to the end of the year. If you've had an especially good year be sure to maximize contributions.
5. Donate to Charity: Rather than tossing away building supplies, old office equipment and even personal belongings put them to good use by donating to charity. Not only will it help others in need but can also help offset taxes.
6. Take Write-Off's & Make Large Gifts Now: If you intend to help family or friends with the purchase of a large item or cash gift, do it sooner rather than later. Under the current guidelines, you can give up to $12,000 tax free to any individual making it a great way to distribute assets rather than leaving it for estate taxes. Remember, even debt forgiveness has tax consequences. Be sure to document everything.
7. Review Family Trusts: Depending upon your individual circumstances, family trusts make great financial sense but be sure to review them annually to determine when to begin drawing down benefits or make further contributions.
8. Take a Loss: Many short sale investors have had a very profitable year but nearly everyone has at least one under-performing investment lingering around their portfolio. Whether it's a cherished stock you've been holding or dismal bonds of some near bankrupt company - offset taxes by taking a loss now.
9. Verify Tax Credits: First-time homeowners aren't the only people who may qualify for some form of tax credit so be sure to check. College expenses, continuing education courses, new car purchase and even energy efficient upgrades are just a few of the potential tax credits that may be of interest to short sale investors.
10. Begin Planning for 2010: The last thing you want to think about is next year's taxes but it's never too early to get organized. In fact, that new PDA, NeatReceipt Scanner and other helpful gadgets may just qualify for additional write-offs!
The Gwinnett County Commission is looking at an offer to privatize Briscoe Field. Currently, the county owns and runs the airpost, near Lawrenceville, off GA316. It has an operating budget of about $1,000,000/year. All of the money generated in fees and leases have to be plowed back into the budget for the airfield.
