Here's a pre-announcement for a seminar we are going to run in a few weeks. On Thursday, December 10, I'm going to give a presentation on IRAs and Roth Conversions. This will parallel the articles I am currently running in the paper and deal with the question of whether or not you should convert your Traditional IRA to a Roth IRA.

 

Since I know there will be millions of dollars in advertising concerning this issue over the next many months, I wanted to at least get some relatively unbiased information to the public.

 

The seminar will run from 5:30 to 7:00 at the Homewood Suites in Wichita Falls. Kathy Kabell (see the next article) will also be presenting some year-end tax information.

 

If you'd like to RSVP or just find out more about the seminar you can contact me at Gary@PersonalMoneyPlanning.com or call 940-692-6885.

 

With 2009 rapidly coming to a close, it is time to start year-end tax planning.  One of the standard year-end planning considerations is income and expense shifting.  By accelerating and/or postponing transactions that either produce income or generate expenses, you may attempt to level out taxable income between 2009 and 2010.  For instance, if you expect to be in a higher tax bracket in 2010, you might save money by accelerating income into 2009.
 
The recession has complicated tax planning of any kind.  There have been a lot of lay-offs and reduction in work hours as well as self-employed individuals struggling to meet cash flows.  There are some provisions in the Tax Code that may be of benefit in these hard economic times.  One is that the first $2,400 of unemployment benefits are tax-free.  Also, if applicable, job hunting expenses and moving expenses may be deductible.
 
The tax provision which allows individuals who have reached age 70 ½ to roll over up to $100,000 from their IRAs to qualified charities on a tax-free basis is set to expire at the end of 2009.  Tax-free rollover amounts are not deductible, but may be more tax advantageous than taking a taxable IRA distribution and then making a charitable contribution.
 
You still have time to take advantage of the deduction for state and local sales taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009. The deduction is limited to the taxes paid on up to $49,500 of the purchase price of an eligible vehicle. This deduction is available whether or not you itemize deductions on Schedule A.
 
Another tax savings move to consider is to make energy-efficient improvements to your home.  The Residential Energy Property Credit allows for 30 percent of the cost of all qualifying improvements up to a total credit of $1,500 for improvements placed in service in 2009 and 2010.  The credit applies to such things as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
 
The earlier you get started on tax planning, the better able you are to maximize your potential tax savings.
 
Kathy Kabell, CPA is a senior accountant with the public accounting firm of Mathis, West, Huffines & Co., P.C. You can find their web site at http://www.mwhpc.com/welcome.html

 

 

Why stop at health care? There are many areas of business that can use a government option to add competition and protect us from the greed of both Wall Street and main street. 

 

Read this tongue-in-cheek look at government control:

http://www.personalmoneyplanning.com/ourviews.aspx?LinkId=93450&spid=93426