Last Minute Tax Planning for Individuals & Businesses

Last Minute Tax Planning for Individuals

First, Sell off those losing positions in your investment portfolio before December 31st. Investment losses can be deducted up to $3000 or offset against investment gains in the same taxable year.

Second, Make that charitable donation or contribution before December 31st. Looking to get rid of that old sofa, donate it to your local salvation army. Just be sure to get a receipt.

Third, as a cash basis taxpayer, be sure and pay your outstanding bills before December 31st. Putting off that bill until next year also puts off that expense for tax purposes until the following year.

Fourth, the IRS treats credit card charges the same as cash. So don't be afraid and charge those last minute business shopping trips for your tax year before December 31st. Just keep in mind that the items need to be placed in service, so you cant buy a computer printer on December 31st from an online store, you need to go to the store.

Fifth, If you were looking for a new piece of equipment or vehicle, complete the deal and place it in service before December 31st and take advantage of the Section 179 deduction available to you. The limitations for 2008 are $250,000 out of which, $25,000 can be used in your business for SUV's over 6000 pounds and under 14,000.