Year End Tax Planning, Checklist and Solid 2011 Tax Savings
Lauren Miller, Enrolled Agent
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Dear Valued Clients and Friends:
Year-end tax planning is especially challenging this year because of uncertainty over whether Congress will enact sweeping tax reform, that could have a major impact in 2012 and beyond.
Regardless of what Congress does late this year or early the next, there are solid tax savings to be realized by taking advantage of tax breaks that are on the books for 2011, but may be gone next year unless they are extended by Congress. These include: |
For individuals:
- the option to deduct state and local sales and use taxes instead of state and local income taxes; the above-the-line deduction for qualified higher education expenses; and tax-free distributions by those age 70 1/2 or older from IRAs, for charitable purposes.
For businesses:
- Tax breaks that are available through the end of this year, but won't be around next year unless Congress acts include: 100% bonus first year depreciation for most new machinery, equipment and software;
- An extraordinarily high $500,000 expensing limitation (and within that dollar limit, $250,000 of expensing for qualified real property); and
- The research tax credit.
We have compiled a checklist of actions based on current tax rules, that may help you save tax dollars if you act before year-end. Not all actions will apply in your particular situation, but you will likely benefit from many of them. We can narrow down the specific actions that you can take if you would like to meet, in order to tailor a particular plan.
In the meantime, please use the following links to our website for a listing of year-end tax planning moves for
Contact Lauren Miller, Enrolled Agent, with any questions you may have on how the current tax rules may apply to you at 716.250.6600, or by email at lmiller@gkecpa.com.
The Tax Practice Group
GAINES KRINER ELLIOTT LLP |
