Want to lower your 2011 tax bill? The time for action is running
out, so consider these tax-savers now.
• You can choose to deduct sales taxes instead of local and state income
taxes. If you’re planning big ticket purchases (like a car or a boat), buy
before year-end to beef up your deductible amount of sales tax.
• If you’re a teacher, don’t overlook the deduction for up to $250 for
classroom supplies you purchase in 2011.
• Consider prepaying college tuition you’ll owe for the first semester of
2012. This year you can deduct up to $4,000 for higher education expenses.
Income limits apply.
• Max out your retirement plan contributions. You can set aside $5,000 in
an IRA ($6,000 if you’re 50 or older), $11,500 in a SIMPLE IRA ($14,000 if
you’re 50 or older), or $16,500 in a 401(k) plan ($22,000 if you’re 50 or
older).
• Establish a pension plan for your small business. You may qualify for a
tax credit of up to $500 in each of the plan’s first three years.
These possibilities for cutting your taxes are just the
starting point. Contact us at (219) 769-3616 or e-mail your
questions to tlynch@swartz-retson.com now for a review of
your 2011 tax situation and tax-saving suggestions that
will work best in your individual circumstances.
SWARTZ, RETSON & CO., P.C
Tuesday, December 6, 2011
Act soon to save taxes—2
Want to lower your 2011 tax bill? The time for action is running
out, so consider these tax-savers now.
• Need equipment for your business? Buy and place it in service by yearend
to qualify for up to $500,000 of first-year expensing or 100% bonus
depreciation.
• Review your investments and make your year-end sell decisions, whether
to rebalance your portfolio at the lowest tax cost or to offset gains and
losses.
• If you’re charity-minded, consider giving appreciated stock that you’ve
owned for over a year. You can generally deduct the fair market value and
pay no capital gains tax on the appreciation.
• Another charitable possibility for those over 70½: Make a direct donation
of up to $100,000 from your IRA to a charity. The donation counts as part
of your required minimum distribution but isn’t included in your taxable
income.
• Install energy-saving improvements (such as insulation, doors, and
windows) in your home, and you might qualify for a tax credit of up to
$500.
These possibilities for cutting your taxes are just the
starting point. Contact us at (219) 769-3616 or e-mail your
questions to tlynch@swartz-retson.com now for a review of
your 2011 tax situation and tax-saving suggestions that
will work best in your individual circumstances.
SWARTZ, RETSON & CO., P.C.
out, so consider these tax-savers now.
• Need equipment for your business? Buy and place it in service by yearend
to qualify for up to $500,000 of first-year expensing or 100% bonus
depreciation.
• Review your investments and make your year-end sell decisions, whether
to rebalance your portfolio at the lowest tax cost or to offset gains and
losses.
• If you’re charity-minded, consider giving appreciated stock that you’ve
owned for over a year. You can generally deduct the fair market value and
pay no capital gains tax on the appreciation.
• Another charitable possibility for those over 70½: Make a direct donation
of up to $100,000 from your IRA to a charity. The donation counts as part
of your required minimum distribution but isn’t included in your taxable
income.
• Install energy-saving improvements (such as insulation, doors, and
windows) in your home, and you might qualify for a tax credit of up to
$500.
These possibilities for cutting your taxes are just the
starting point. Contact us at (219) 769-3616 or e-mail your
questions to tlynch@swartz-retson.com now for a review of
your 2011 tax situation and tax-saving suggestions that
will work best in your individual circumstances.
SWARTZ, RETSON & CO., P.C.
The tax rules can provide relief when disaster strikes
Hurricanes, tornadoes, earthquakes, wildfires, floods, storms. Few parts of
the country escape the risk of natural disaster. If you’re an unlucky victim,
you may receive help from insurance and federal disaster aid. But the tax
code also offers some relief. You may be able to take an itemized deduction
for part of your loss. In tax terms, it’s a “casualty loss,” and it can also apply
to events such as a car crash, a house fire, or theft. Here are the basics.
• Sudden event. The loss or damage must be due to an unexpected and
sudden event. Losses due to slow deterioration over the years, such as rot,
rust, or insect damage, don’t qualify.
• Tax deduction. Your tax deduction won’t equal your total loss. You must
subtract any insurance or other reimbursement. Then you must also deduct
$100 for each loss and 10% of your adjusted gross income.
• Basis adjustment. Your loss may also be limited by your adjusted basis
in the property. That’s generally what you paid for it, plus or minus any
improvements or previous losses.
• Disaster classification. In a widespread disaster, the area may be
classified as a “federally declared disaster area.” If that happens, you have
two choices. You can claim your casualty loss against the current year’s
taxes. Or you can amend the previous year’s return and claim your loss
against that year’s taxes. That usually generates a faster refund, but it may
change the amount of your deduction.
If you’re unlucky enough to suffer a casualty loss, please
contact us at (219) 769-3616 or e-mail your questions to
tlynch@swartz-retson.com. We’ll help you claim the
maximum possible tax benefit.
SWARTZ, RETSON & CO., P.C
the country escape the risk of natural disaster. If you’re an unlucky victim,
you may receive help from insurance and federal disaster aid. But the tax
code also offers some relief. You may be able to take an itemized deduction
for part of your loss. In tax terms, it’s a “casualty loss,” and it can also apply
to events such as a car crash, a house fire, or theft. Here are the basics.
• Sudden event. The loss or damage must be due to an unexpected and
sudden event. Losses due to slow deterioration over the years, such as rot,
rust, or insect damage, don’t qualify.
• Tax deduction. Your tax deduction won’t equal your total loss. You must
subtract any insurance or other reimbursement. Then you must also deduct
$100 for each loss and 10% of your adjusted gross income.
• Basis adjustment. Your loss may also be limited by your adjusted basis
in the property. That’s generally what you paid for it, plus or minus any
improvements or previous losses.
• Disaster classification. In a widespread disaster, the area may be
classified as a “federally declared disaster area.” If that happens, you have
two choices. You can claim your casualty loss against the current year’s
taxes. Or you can amend the previous year’s return and claim your loss
against that year’s taxes. That usually generates a faster refund, but it may
change the amount of your deduction.
If you’re unlucky enough to suffer a casualty loss, please
contact us at (219) 769-3616 or e-mail your questions to
tlynch@swartz-retson.com. We’ll help you claim the
maximum possible tax benefit.
SWARTZ, RETSON & CO., P.C
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