Tax Tips

1. Be sure to pay all tax-deductible items by December 31, 2007. Credit card charges for deductible items are considered cash-basis payments when the charge is made, even if you do not pay your credit card bill until 2008.

2. If you are self-employed, delay some of your year-end customer billing until January, thereby pushing some income into 2008.

3. Be sure to pay real estate property taxes by December 31, even if they aren’t due until January 2008.

4. If you have or will incur capital gains in 2007 and happen to own stocks that would result in a loss when sold, you might consider selling them before year end in order to offset the capital gains.

5. If you don’t already have an IRA but plan on opening one, you must do so before December 31, 2007. Contributions to IRAs for the year 2007 must be made by April 15, 2008.

6. Get your tax return prepared early and out of the way. IRS charges interest and late-pay penalties on all taxes due for 2007 paid after April 15, 2008, even if you file for an extension.

More to come…

Joe

Learn more about Joe DePetris, Jr., and IBO tax return preparation and tax issues at IBO Bookkeeping 101.

Find more Tax Tips for IBOs from Joe DePetris, Jr., CPA.

This article is provided as an educational resource for your guidance, and is strictly informational. It does not constitute legal, accounting, or other professional counsel. Nothing included herein implies a recommendation by the author, the IBOA International, or Amway Global, of any course or method of regulatory compliance. Readers and users who intend to take, or refrain from taking, any action based on information contained herein should first consult with their qualified tax advisor, preferably a C.P.A., or appropriate regulatory authorities.