Last Minute Tax Tips

Dec 29, 2009 7:20 PM

The year is coming to an end but there are still ways to cut back the amount of money you have to pay Uncle Sam next year.

Taxes are not due until April 15th, but what you do in the next couple of days could have a big impact on your wallet when it is time to pay up. CPA Tommy Irvine says some things you can do include pre-paying deductible expenses, donating to charity and making contributions to retirement plans. If you own a business you can buy equipment or prepay expenses.

Be sure to keep receipts to prove all last minute moves were done before December 31st, but if you are making a non-cash donation Irvine recommends taking a picture of it to show the quality and then estimating the value of it.

State taxes on new cars up to $49,500 dollars are deductible for most people but is it a good idea to go out and buy one? "I always say don't spend a dollar to save thirty cents, says Irvine. "All these things are things that if you're thinking about doing them anyway, then it's a good way to save on taxes also."

If you tried your luck in the stock market and lost, you can give yourself a little bailout if you act fast.

"You can deduct up to $3,000 in losses each year. The big thing now, things that gained previously in the year, now is a good time to sell things that lost to offset those gains, so you don't have to pay tax on those gains," Irvine stated.

If you want more information on taxes, you can call "Matson and Isom" at (530)891-6474.


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