Tax Tips to Help You Save Money
The following are some things you can do to limit the share you have to give Uncle Sam, advises Gregg Wind, a certified public accountant with Wind Bremer Hockenberg LLP in Los Angeles.
- Pay bills now. If it was a very good year but you think 2007 might be worse, accelerate deduction into 2006 by paying the mortgage and other tax-deductible payments early.
Pay bills later. Conversely, if 2007 promises to be a banner year, much better than 2006, hold off paying tax-deductible payments.
Pay state taxes now. If you calculate that you’ll owe state income taxes for 2006, make the payment by Dec. 31, so you’ll be able to deduct it on the return that you file next year.
Were Your Quarterlies Right? Make a final estimate and catch up or you may owe a penalty.
Buy a car or purchase office equipment. Whatever you buy has to be put into service by Dec. 31 of this year to be deductible, but you don’t have to pay for it right away.- The maximum you can spend and deduct in one year is $108,000.
Source: The Associated Press, Joyce M. Rosenberg (12/13/06)
