>>Introduction to Year-End Tax Strategies
Checklist for Individuals
Checklist for Businesses
Checklist for Payroll & 1099 Reporting
Introduction to Year-End
Tax Strategies...
December 15, 2007
Dear Client:
We are sending this letter to help you with year-end tax planning. Tip: If you are short on time, begin by just reading the red, underlined portions to
help identify the key tips that may help you, then pursue the item more
thoroughly to see if that strategy will be effective for you.
The
discussion and lists are not comprehensive and specific strategies affecting
your particular tax situation may not have been included. Year-end planning needs to be done on an individualized
basis, taking account of the specific situation and planning goals
of each taxpayer, with an eye on minimizing taxes to the greatest extent
possible. Please let us know if you
would like us to help with your tax planning.
This discussion of year-end tax planning is generally
oriented to lowering 2007 taxable income often by deferring taxable income into
next year (2008). However, where special circumstances exist, a taxpayer may wish to reverse this strategy by
accelerating taxable income into the current year (2007). Many
of the techniques for deferring income and accelerating expenses can be
reversed to achieve the opposite effect.
There may also be limitations or consequences to moving income and
deductions between years. There are special
considerations for each entity type (Individuals, Corporations,
LLCs, etc.). Some strategies that may work
for regular income tax purposes may be countered by unexpected alternative
minimum tax (AMT) calculations (AMT is becoming a challenge for more
taxpayers each year).
There
are links at the top of this page to “Summarized Checklists” of some of the more important tax-saving
steps that should be taken no later than December 31,
2007.
As
you consider year-end tax planning, you may want to also consider your situation for the longer term.
Do you know if you are putting enough aside for retirement,
your child’s college, or for your
family should death or disability occur? Do you feel like your
investment portfolio mix or management may need a change? We can help you
assess these important needs… Please don’t wait until it is too late!
We
appreciate your business and look forward to serving you this next year!
Richard A. Howard, CMA, CPA