Even with the downswing in the markets and in the economy there are many opportunities for both businesses and individuals to reduce their tax burdens.
For instance, you can take advantage of the increased pay-in limits to your IRA, 401(k) or Simple plans. If you’re a business, you still have the increased first-year depreciation available for 2002. These are a just a few things you can do, as well as the standard strategies of shifting income and paying expenses before December 31, 2002—which can be done by businesses and individual alike. Here are also new changes for 2002 that you may be able to use:
* The educational interest deduction has had the phaseout increased to $130,000 for couples and $65,000 for singles with the five-year limit deleted. * There is a new deduction of up to $3,000 for higher education expenses. * Teachers get a new deduction for up to $250 for classroom materials they buy.
And don’t forget your investments—as if you could, particularly in this volatile year. Even with a bear market there may be some opportunities to sell at a gain that will be offset by any losses you may have had. Be sure to review your portfolio before year’s end to make sure, or call me at 802 362-9000 to set up an appointment when we can review them together.
Year-End Tax Planning
Even with the downswing in the markets and in the economy there are many opportunities for both businesses and individuals to reduce their tax burdens.
For instance, you can take advantage of the increased pay-in limits to your IRA, 401(k) or Simple plans. If you’re a business, you still have the increased first-year depreciation available for 2002. These are a just a few things you can do, as well as the standard strategies of shifting income and paying expenses before December 31, 2002—which can be done by businesses and individual alike. Here are also new changes for 2002 that you may be able to use:
* The educational interest deduction has had the phaseout increased to $130,000 for couples and $65,000 for singles with the five-year limit deleted.
* There is a new deduction of up to $3,000 for higher education expenses.
* Teachers get a new deduction for up to $250 for classroom materials they buy.
And don’t forget your investments—as if you could, particularly in this volatile year. Even with a bear market there may be some opportunities to sell at a gain that will be offset by any losses you may have had. Be sure to review your portfolio before year’s end to make sure, or call me at 802 362-9000 to set up an appointment when we can review them together.
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