Taxpayers can take the first step toward tax planning by reviewing tax law changes and their situation. A little advance planning now could save taxpayers time and money later. Here are ten tips to consider:
1. Make 2007 deductible charitable contributions no later than December 31st.
2. Taxpayers at least 70 1/2 years old can make a tax-free transfer of up to $100,000 directly from an IRA to a tax-exempt charity by December 31st.
3. Contribute to a retirement account.
4. Go green. You may be eligible for tax credits if you make energy efficient improvements to your home.
5. Consider a portfolio adjustment. Up to $3,000 can be deducted in capital losses each year.
6. Watch out for scams. The IRS never initiates contact with taxpayers through email.
7. Eligible taxpayers can deduct costs associated with their loans such as points and home mortgage interest.
8. Find out about work-related expenses.
9. Some business taxpayers may benefit by buying and placing an asset into service before year's end.
10. Save receipts and all paperwork.