December is just a few short months away and there are many benefits you can reap on tax day if you act before December is over. Here are a few things you can do now to help lower your tax amount due!
- Energy-efficient basic home improvements – insulation, certain HVAC systems, water heaters, windows, doors and roofing. You can recoup $50 to $500 of costs. There is no sign of this credit being removed so if you were thinking of doing this work, get moving!! Go to energystar.gov for details.
- Investment losses – if your portfolio has some poor performers, sell them to offset gains. If you have an loser investment that you think is going to turn around quickly, buy more and wait 30 days. If you’ve still got a loss, sell your original positions to claim the loss. If the loss is erased, you made money.
- You may have until April 2012 to fund an IRA, but you only have until the end of the year to make out your 401(k) or retirement account. Even upping your contribution by $1,000 cuts your federal taxes by $280 if you are in the 28% tax bracket. If you make the change now, you will be able to spread the extra out over the remaining 3 months.
Contact us today for more tax planning tips and ideas!
September 9th is National 401(k) Day! This day is an annual celebration to promote the importance of participation in employer-sponsored profit sharing and 401(k) plans. Ignoring these plans should not be an option! Do you stop for a coffee everyday? Put that money towards your retirement instead! Would you like to reduce your income taxes? Participate in the retirement plan and do just that as the contributions are deducted before your taxes are calculated (except for Social Security taxes). Does your employer offer a match? If the answer is yes, realize you are throwing free money away by not participating! Do you have an old 401(k) from a previous employer? Most employers allow you to roll your 401(k) balance into their plan and if they do not, you can open an IRA to capture those assets. 