Limiting the Damage – Steps Taken Now Can Lighten Your Tax Burden Later
While year-end tax planning is always and in all ways important, it is especially crucial in 2008. The time is now to apply new tax rules to secure your best tax advantages for this year and beyond.
This is a very challenging time for individuals and businesses, a climate that demands that each of us takes a look at year-end tax planning, regardless of the level of our income, with an eye toward reducing our tax burden down the road. One or more of the following unprecedented events likely had an impact on you during 2008 and potentially for a number of years going forward: the stock-market collapse, the credit crisis, the recession, the bursting of the real-estate bubble, and/or the rise and fall of energy prices.
What follows is a primer that will identify some of the ways in which you can take the lemons that may have been hurled at you and turn as many of them as possible into lemonade.
Income and Deductions Shifting
Usually the most efficient planning opportunities will grow out of the time-tested strategy of maneuvering your income and/or expenses between tax years. The two primary benefits that grow out of the opportunities for doing this are the ability to control the tax rate at which you will be assessed and the ability to control when those taxes will be paid.
If you are in a position to control…
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by: Bruce M. Fogel, Esq.
December 22, 2008