    I was reminded today that it’s not too early to think about 2008 income taxes.  We have 122 days left before the end of the year!  I was trying to determine some property tax information and realized I couldn’t find a particular form. I did after much paper wrestling, but this brings to mind some things to think about for the last half quarter of the calendar year:
- Records: Get that shoebox and file folder organized for receipts and tax information… obviously I’m not as organized as I thought I was! I need to keep better track of my potential deductions, especially business expenses. Each year I find some deduction I missed, or something I could have done differently to improve my tax situation for the next year.
- Retirement: Think about IRA contributions between now and April 15 of 2008. That’s the time we have left to make contributions for a 2007 IRA. For 2007 the maximum amount is $4000, plus $1000 more if you’re over age 50.
- Gifts and Charitable donations: A good time to begin planning strategy for the end of the year. Are you thinking about increasing charitable donations? Keep good records, and talk with your financial planner or CPA before making large financial gift decisions.  Remember, for 2007, $12,000 is the “annual exclusion” or the limit of gifts free of taxation. You can give any individual up to $12,000 free of tax this year. Wouldn’t you like to meet a few people like that…
- Rollovers: Qualified Employee Plan Rollovers and IRA Rollovers: Now is a perfect time to consider your plan of action if you think you’ll be making a Rollover this year. Remember that a trustee-to-trustee transfer is what you want, and that should prevent your company or brokerage from witholding 20% of your assets for tax purposes. Be thorough about it, and make sure you give yourself time before the end of the year to complete the transfer/rollover. Sometimes it takes a few weeks, or more.
- Capital Gains and other income:  It’s also a good time to assess how much different our income might be this year as compared with last year. If there are (or will be) large capital gains or losses from investments or other asset transactions, think about how that will affect your tax situation. Is there something you can do to offset those gains?Â
     We’ll be hearing a lot more in the months ahead.  Is there anything you do in particular to help make tax season go more smoothly? I usually need a few reminders to think about financial matters as we head into the Fall season.  The holidays will be here before we know it, and this year I’m going to work hard to stay ahead of the game!
No comment - Post a comment
« Stocks Rocket: Fed Funds Rate down to 4.75 | Conversational Greenspan »
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
