As we approach Christmas and many other holidays in December it also marks the end of the tax year. So Merry Christmas, Happy Hanukkah, Happy New Year and Season’s Greetings from MilitaryAvenue! I so enjoy this time of the year but also realize it requires me to stay focused on our budget and planning for taxes is one of the unfortunate pieces of reality we all face at this time of the year!
Our friends at USAA, Mike Kelly and JJ Montanaro, provided us some great ideas for this end of the year planning. They provided some action items that we need to get done during the holiday season in order to lessen some potential tax liabilities.
First, it is the season for giving and we certainly can help those in need. When you do charitable things like giving clothes, donating groceries, or funding programs be sure to get a receipt. Also, remember to include your mileage in support of charitable efforts as well!
Second, pay deductible expenses such as January’s mortgage at the end of December and push up the interest deduction into 208! I always thought this was a great idea but a tough one with our Christmas expenditures but if your resources allow it will reduce taxes for this year.
Third, do you have a favorite stock that just lost a lot of value? Maybe you want to sell and show the loss for the year? After this year’s market losses it would appear that anyone with investments could use this tactic.
Fourth, invest in the future with a contribution to your IRA or 401K or similar retirement fund. Be sure to consult with your financial planner for the best option for your investment based on income, current financial situation and age. The financial planners at USAA are always available to answer questions and assist you with these type of financial decisions.
Fifth, are your getting ready to PCS? We did a PCS at Christmas one year and visited family enroute and then went skiing in Utah enroute Washington state. We had a great time, planned it well and some of our expenses were deductible! It was a great move and we added value by planning it to include our holiday events too!
Thanks again to JJ Montanaro at USAA for his ideas and assistance with end of the year tax saving ideas!byColonel KonFriday, December 12, 2008Email ThisBlogThis!Share to TwitterShare to FacebookShare to PinterestMilitary Life:Col K,finances,USAA