Tax Tips

CHECKLIST OF THINGS TO DO BEFORE THE END OF 2011

• Realize losses on stock while substantially preserving investment position
• Arrange with employer to defer bonus until 2012
• Increase basis in S corporation or partnership to make possible a 2011 loss deduction.
• Use credit card to prepay expenses
• Make energy saving improvements to your home that qualify for tax credits in 2011
• Put equipment in service before year-end to qualify for the 100% bonus depreciation
• Make expenditures qualifying for the $500.000 business property expensing election
• Apply bunching strategy to miscellaneous itemized deductions, medical expenses and other itemized deductions to increase deductible amounts
• Increase withholding to eliminate or reduce estimated tax penalty
• Set up self employed retirement plan
• Make gifts taking advantage of the $13,000 gift tax exclusion
• Take steps to avoid or minimize income tax on Social Security benefits
• Dispose of passive activity to free up suspended losses
• Ask employer to increase withholding of state taxes to pull the deduction of those taxes into 2011
• Extend subscriptions to professional journals, pay union or professional dues, enroll in (and pay tuition for) job-related courses, etc., to bunch into 2011 miscellaneous itemized deductions subject to the 2% of AGI floor
  

Contact your tax accountant to discuss any of the above.