Don't Lose Tax Breaks
Through Poor Planning
December 2004
Did you
know that over 20 tax breaks phase out once your income reaches certain
levels? A few examples: the $1,000 per child tax credit, the $3,050 per
individual personal exemption, education deductions and credits, and
itemized deductions.
If your
income for 2003 will be only slightly above the limit for one of these
tax benefits, you may be able to control the timing of year-end income
or deductions in order to still qualify for the break. There are several
ways to move income and deductions from one year to another.
For
example, you might squeeze extra deductions into 2003 by paying your
January mortgage payment before December 31 or paying medical bills and
property taxes this year instead of next. You might postpone income by
selling an investment on an installment contract instead of for cash. Or
wait till January to sell an investment to get the gain taxed in 2004
rather than 2003.
For
guidance in managing your income to protect tax breaks, give us a call.
We can help you keep your taxes as low as the law allows.
For more information, give us a call.
Return to 2004 Tax Tips
