YEAR-END TAX PLANNING NEWSLETTER
Dear Clients and Friends:
This last quarter of 2011 brings thoughts of upcoming football, holidays, family gatherings, whom to get what and what to get whom. Busy times are ahead and to take a bit of pressure off we have posted our 2011 Year End Tax Planning Letter.
As 2011 winds down there's less uncertainty about the short-term outlook for tax law than we had at the end of last year. With temporary clarity comes the opportunity to create a sound tax-saving plan – and the time to put your plan into action. Here are several strategies to consider.
Reap tax benefits with retirement savings
- When it comes to retirement saving, rule number one is to contribute the
maximum amount allowed every year.
Roth conversions affect taxes
- Roth conversions were included in tax planning last year, in part due to the one-time opportunity to defer paying federal income tax on the conversion.
Reduce AGI to qualify for tax breaks
- Reducing your adjusted gross income could increase eligibility for income-limited deductions and credits.
Review support provided for relatives
- While planning to maximize deductions, remember to take into account the financial support you provide for relatives.
Assess equipment needs for your business
- For business owners, this year offers what may be a last-chance opportunity for an enhanced deduction: 100% bonus depreciation is scheduled to expire December 31st.
Choose strategies that fit your situation
- Other strategies for reducing your 2011 federal income tax bill include maximizing losses by increasing your participation in passive activities, taking steps to write off worthless securities and bad debts, and harvesting capital losses.
If you have questions or need assistance give us a call or make an appointment. Please contact us by December 15th so there will be adequate time to implement action before year end.
Sincerely,
John W. Trudell, CPA
PAST LETTERS:
September 2011 Newsletter
July 2011 Newsletter
May 2011 Newsletter
Tax Season 2011 Newsletter
Christmas 2010 Newsletter
November 2010 Newsletter
October 2010 Newsletter
September 2010 Newsletter
July 2010 Newsletter
May 2010 Newsletter
Christmas 2009 Newsletter