Eight ways to cut your 2005 taxes

December 2005

 

Here are some moves you could make between now and year-end to cut your 2005 taxes.

* Max out your 401(k) at work. You can put a total of $14,000 into your 401(k) this year, and if you're 50 or older by December 31, you can contribute an extra $4,000.

* Take stock losses to offset capital gains for the year. Losses in excess of gains can be used to offset ordinary income, up to a maximum of $3,000.

* Check the tax consequences if you're planning to marry or divorce before year-end. A minor change in the dates could result in sizable tax savings.

* If you're planning to take a deduction for sales taxes paid this year, consider purchasing big-ticket items before year-end to boost the amount you can deduct.

* Look into a health savings account that will allow you to deduct contributions and use the account to pay medical expenses tax-free.

* Make charitable contributions before year-end. Recent hurricane relief legislation temporarily suspends certain contribution deduction limits even for non-hurricane giving.

* Plan equipment purchases for your business to take advantage of the $105,000 expensing allowance for 2005.

* Start a pension plan for your small business. Business owners can take a credit of up to $500 in each of the first three years of establishing the plan.

That's just a handful of tax-cutters you might want to consider. Call our office for an appointment to discuss the year-end moves most suited to your particular situation.

Maniar, Miller & Wechsler, LLC

2855 N. University Drive, Suite 600
Coral Springs, FL 33065
Phone: 954-75 CPA-MM (752-7266)

Fax: 954-345-0115
info@cpa-mm.com