Year-end tax-planning tips
While the end of the year is approaching, there’s still time to take steps to minimize your tax bill for 2008.
Here are a few ways to avoid paying more than you need to.
- Tax-loss selling. Plan any tax-loss sales of securities before the end of the year, so they can be applied against capital gains made during 2008. For the 2008 taxation year, any tax-loss security sale should be made with sufficient time for your trade to settle before the end of the year.
- Mutual fund sales. Time any mutual fund sales to take place before the funds’ yearly distributions, usually made in December. These represent a taxable gain. We can help you decide if tax-loss selling and sales of mutual funds are right for your situation.
- Professional and business purchases. Complete any tax-deductible purchases before year end, in order to claim them for 2008. These include business equipment, such as computers and office supplies, as well as professional services such as lawyer’s fees.
- Charitable donations. Set aside the funds now for any charitable donations you intend to claim for 2008.